paying loans late

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I've paid my loan late each month since oct last year, im in over a grand in arrears .....this month ive paid half, and told them i shall call next month to pay the rest ...its a secured loan ......the man on the phone said if this happens once more, they will start proceedings ....what does this mean ...I said, so you will take my house, he said I have considered selling it ....I said no its not worth enough to cover the debt on it ....and the mortgage is so low, I cant afford to leave, as I cant afford to pay out more a month ......basically If i leave this house i will become homeless ......im self employed at present......what I cant get over is that i am paying them, all be it in dribs and drabs, but im paying over the agreed amount to clear the arrears ? ,,,so why would they proceed to take the house ?

~Beanie~

They could, yes. That is the whole point of a secured loan. Whether they actually will or are just threatening you is a different matter.

You agreed to pay them a set amount each month, by paying in dribs and drabs you are not paying as per your agreement.

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mmm I see, hopefully I shall get back on track ! ...really cant loose my house. When I took it out I had a really well paid job, but got made redundant so things have changed now. This is what keeps me awake at night ! My mortgage provider seems alot more flexible in helping me out

Tixy

Have you considered speaking to one of the debt advice charities at all for some advice?
Is the mortgage and the secured loan your only debt? or do you have unsecured debts as well?

This advice guide gives a bit of info on falling behind on repayments to secured loans https://www.nationaldebtline.org/EW/factsheets/Pages/G2%20EW%20Mortgage%20arrears%20guide/Page-08.aspx

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will do thanks xx I pay everyone else £1 per month. Its just quite frightening to listen what could happen from them, even when you are paying them ? all be it a tat late etc ...,but im making the effort. I find it strange things are not taken into account when your income changes ? my loan is linked to the base rate, but it never went down when the base rate went down like my mortgage.

Tixy

Rather than phoning each month to say what you can afford have you actually written to them to state your circumstances and that you are struggling with repayments? Might be worth a try if you haven't yet. Are you paying at least the interest/charges each month so that the debt is not increasing?

A tracker loan would have to decrease when the base rate decreased but secured loans are almost never tracker loans, they usually have a variable APR.

The reason a mortgage company can be more flexible than a secured loan is because the mortgage is secured first and so they have a much greater chance of getting all their debt repaid if the event of a repossession.

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i have never not paid this loan, I had a reduced amount for a number of months, thats why im in arrears at the mo ....he said the intrest accrewing means I owe more now on the arrears ? as im late paying ....I've only ever been 1 or 2 days late too, this is the only time Im paying half one week half the next ....i think I may write them a letter asking them to explain the charges, and a break down of why the arrears are increasing even tho Im paying. its a nightmare !! .....the man on the phone was awful, felt like he burst out laughing when I hung up, glad he made me feel sad. I was almost in tears on the phone.

Tixy

How horrid. Definitely sounds like a good idea to do it by letter then rather than trying to ring again.

As you say you want a breakdown of the account and interest/charges since your last annual statement from them so you can see better what is happening with it.

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my house is not even worth enough to sell it either - I simply owe too much. Im finding it all a bit too stressful to be honest. Im sure I shall sort it, I just want my business to get better, get me back into profit and earning like I used too. I shall prey for a miracle

Monika01

You should be give more interest.

jmhgibson123

im sure they wont make you sell if its not worth it but they may put a charge on it so if you do ever sell they get their cut, trouble is with making a arrangement to pay is if you are late its like defaulting all over again so you must make sure the dates you say you will pay on are accurate to keep them at bay