Loan non repayment

TheBarber_2

Hi all,

I need some help.

I have a mortgage and a personal loan secured against it for 12k

I recently started my own business, so money has now become tight as Im simply not getting enough customers through the door - its early days

I have taken a payment holiday from my mortgage for 3 months, and just started paying it again - however I can only afford to pay my mortgage and my rent on my shop - I cannot afford my load repayments as Im left with £10 in my bank after ive just paid mortgage and my business rent.

My cards are taking a hammering, and my bills are often paid late - council tax wont help me either.

Went to the bank this morning to discuss my loan, and they said they can no longer help as its been passed to a collection agent.

Can anyone tell me my options ?

I dont want to lose my house, or my business as its just started. Any help gratefully appreciated

Tixy

Hi and welcome to the forum

You need to find away to increase your income or reduce your outgoings so you can afford the loan secured on your house.

Can you get part time employment around your self-employed business? could you rent somewhere cheaper for your business. Could you take in a lodger to help with finances?

You mention card debts - are you paying anything towards these at the moment? if you are then you need to stop payments on these unsecured debts and start paying the secured loan and your council tax which are both higher priority.

It may be worth posting on the Debt Free Wannabe section of this forum and posting up a statement of affairs (list of assets/income/expenditure) so people can advise you better on your situation.

Alternatively you may want to speak to one of the debt advice charities for some free impartial advice. A list of these can also be found on the DFW section.

BillJones

As above, you need to increase your income, decrease your outgoings, or do both, or the bank will have the option of taking action against you up to and including taking your house.

I understand that you want your business to succeed, but just missing payments while you wait for that to happen is not the way forward. Do you have what you feel to be accurate projections for when you'll make sufficient return to ease your issues? Have you a solid business plan written up?

If so, you might explore getting some proper business funding arranged, rather than trying to wing it on loans that you can't cover. Banks don't want to take your home, and will work hard to find a solution that does not involve it, but they won't view your desire to try an exciting new unprofitable business to be a sufficient reason to let arrears continue to build.

Whatever else you do, you need to talk to them about your situation, properly, and you also urgently need to find away to make savings, and to bring in more money.

Aquamania

TheBarber wrote: »

Hi all,

I need some help.

I have a mortgage and a personal loan secured against it for 12k

I recently started my own business, so money has now become tight as Im simply not getting enough customers through the door - its early days

I have taken a payment holiday from my mortgage for 3 months, and just started paying it again - however I can only afford to pay my mortgage and my rent on my shop - I cannot afford my load repayments as Im left with £10 in my bank after ive just paid mortgage and my business rent.

My cards are taking a hammering, and my bills are often paid late - council tax wont help me either.

Went to the bank this morning to discuss my loan, and they said they can no longer help as its been passed to a collection agent.

Can anyone tell me my options ?

I dont want to lose my house, or my business as its just started. Any help gratefully appreciated

What you want, and the reality of things, appears miles apart.

Unless you are going to get a huge, immediate increase in income, you can't afford to carry on with both.

Gaz83

Some tough decisions ahead.

Perhaps posting a Statement of Account on the debt-free board will let you get some advice on where you can cut down on some things.