Loan affordability help

stourbridge2410

I would have continued to pay the other debts individually.
The new loan monthly payment was actually more than the others combined, but all the debt would be paid in 5 years, a lot quicker than the individual debts.

stourbridge2410

It is not a secured loan.

ViolaLass

stourbridge2410 wrote: »

I would have continued to pay the other debts individually.
The new loan monthly payment was actually more than the others combined, but all the debt would be paid in 5 years, a lot quicker than the individual debts.

So the Ombudsman might get Barclays to increase the term. Would that help you enough?

Caz3121

stourbridge2410 wrote: »

I would have continued to pay the other debts individually.
The new loan monthly payment was actually more than the others combined, but all the debt would be paid in 5 years, a lot quicker than the individual debts.

but overall was the loan saving you money on the repayments over time although you chose to reduce the time period and increase the monthly payments - is that correct?
I agree that £40k loan should never have been offered on a £12k salary with a large amount of existing debt. Hopefully they may allow you to extend the term to allow the monthly payments to be reduced...how long would your old debt payments have taken to clear?

stourbridge2410

If Barclays would reduce the minimum payment that would be brilliant, but they said they couldn't.

Old debts would have taken longer to clear as one of them was a credit card.

I have only asked them over the phone so maybe I should write them a letter with all this in asking if they can help.

I am not behind on any payments at all (mortgage, utilities, council tax etc) even this loan is up to date, have never missed a payment in my life.

It is just because of change in circumstances, as I paid off some of my ex husbands loans - stupid I know.

But I still think Barclays shouldn't have offers me the loan based on my income.

stourbridge2410

Are there any links for template letters to send the bank, to give me an idea of what to write?

oldhand

Is the EX thats leaving soon the ex husband whose loans you paid off? If so it seems he got his debt clear and now your being left to hold the baby.You cant pay with what you dont have so at best its in the banks interest to lower your monthly payments, I think the bank has some responsibility as I always believed they would only lend money commensurate with your income.
I would have expected a 40K loan to mean you needed 60 or 80K a year coming in.....

stourbridge2410

oldhand wrote: »

Is the EX thats leaving soon the ex husband whose loans you paid off? If so it seems he got his debt clear and now your being left to hold the baby.You cant pay with what you dont have so at best its in the banks interest to lower your monthly payments, I think the bank has some responsibility as I always believed they would only lend money commensurate with your income.
I would have expected a 40K loan to mean you needed 60 or 80K a year coming in.....

Yes their debts are now clear.
I will have to write to them, I tried calling twice and was told they couldn't do anything, so hopefully I'll have more luck with a letter.

Have been with Barclays for years and when the loan was offered we had just 2 months before taken out a mortgage on a new house with them.

Just need to try and draft a good letter now.
Is it worth saying in the letter that maybe they shouldn't have offered me a loan for that amount knowing my wage?

rtho782

You've been paying it for a year, so Barclays could well argue it was affordable when taken out.

G212121

Of course you can complain that the loan was unaffordable and unfair especially if they knew your wage at the time of granting you the loan which being your bank they would of been able to see your wage coming into your bank account. They have a responsibility to lend to you what you can afford and regarding them not helping you after you've told them you're in financial difficulty and can not afford to pay the loan I would also add that in to your complaint too.
When writing the complaint just add all of the points that you've added on this post as to why you think it was unafforable, keep a copy of the complaint when you send it off, once it's been sent off you have 8 weeks or unless you've received a final response if that's sooner before you can go to FOS.
Just because some people think you don't have a complaint don't let that stop you. Barclays and FOS will make that decision on whether you have a valid complaint.
Best of luck