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can i get my debt down? lower repayments?

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Hi there,
this is my first ever forum post!


I had my first proper loan of £5000 in 2011, I was 21 years old and wanted to buy a car and pay my insurance for the year as my car insurance for that year was £2300! The woman in bank said I it would be cheaper to get a loan for both, instead of getting a loan for the car and then monthly insurance. So they're both in one payment. Sounded great, but the next year i'm stuck paying the loan as well as having to renew my car insurance.


I got my first mortgage when I bought my flat in 2012. Now having a mortgage meant I was able to get lots more! The car I had was rubbish, falling apart and pretty old. I got roped into getting a car on finance. I spoke to the bank because I was concerned I was in over my head with the loan, finance and insurance on top of my out goings. I was only 22 at this time and pretty naïve looking back. The saleslady suggested now I have a mortgage I am eligible for a loan top-up! so why not add on my existing loan enough to cover the car finance, the next years insurance, and I could even get an extra £5000 for my self "to treat my self" all for only £330 a month which worked out cheaper that paying everything separately. In order to do this though I had to sign up for a royalties gold account. I have now realised this was miss-sold and I'm going through the motions to get my fees back as I didn't need to change my bank account.
So back to the loan, she ended up getting me just over £13,000.00 which looking back now is absolutely ridiculous for a 22year old isn't it?!? I struggled in the first year and after 1year I managed to get them to reduce the payments by switching it to a lower interest rate and adding on another year to agreement, saving me £50 a month. I had to use this £50 towards my monthly car insurance renewal.
2013 me and my partner had a baby girl, meaning eventually we had to move from our tiny 1 bed flat to a two bed house. Living cost are crazy, we we're paying £215 mortgage, then the move meant more money! bigger house... bigger price we pay £585 a month in rent. so £370 a month more as well as all the other up rising living cost.
I asked the bank on the next years loan anniversary if I could do the same as the last year and stretch the loan over another year to reduce the payments. They said NO. At this point I was in debt CRISIS, couldn't make ends meet, my incomings did not even cover my outgoings :( what a mess! I spoke to the bank after them saying no, to help me find a solution to my problem. They suggested an arranged overdraft extension the amount of 1 loan payment, this gave me the chance to pay off a couple of payday loans! I had no choice at the time, I hate payday loans, but didn't know what else to do. The agreement was extending my overdraft and reducing it by £30 a month until it was back to just £100 overdraft.


This is where I am currently at. I still have nearly £10,000 on the loan, I think the way they made it sound it was so wonderful to get this much money, without explaining the consequences! such as it's all good getting a 5yr loan to pay for 1year car insurance and spends, but don't point out what are you going to do next year?! their answer is to top up your loan... more borrowing, more borrowing and oh yeah more borrowing.


Me and partner both work very hard to provide a decent living and now after years of graft and a baby I have had to reduce my working hours (my partner is still full-time) because we can't afford childcare as she is under 2, jointly we earn over 16,000a year and even with help from tax credits we can't afford it. With me reducing my hours, obviously I get less wages, also we're getting less tax credits from an overpayment last year. Honestly life is such a struggle for us a young working family trying to make an honest living. Any help or advise would be really appreciated.


Does anybody think I could get something done about my loan??


Thank you.
P.S. Martin, I love the show, love the website. Always look out for you on this morning and I wouldn't have known about reclaiming my Royalties gold fees if it wasn't for you... not received yet, in the first complaint stage, but they have been co-operative and I mentioned the loan. Keep doing what you do best :0) xxx
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