Natwest Loan trouble

Jobber_Jones

I took out a loan with Natwest 3 months ago. The amount was 5000, I used it to pay off all my credit cards which were costing me a lot more money (all sub-prime cards) since then my partner has lost his job (redundancy) and we are struggling. My loan repayment is £140 a month.

I'm not sure what to do, do I speak to Natwest directly and see if they can lessen my payments? I worry they may accuse me of taking out the loan when I knew I couldn't afford it. I'm starting to lose sleep over being able to afford the £140 on the 25th.

I'm new here so please be gentle!

[Deleted User]

If you can't afford payments, you'll need to talk to them. You may as well default as early as possible and agree a repayment schedule.

Obviously if you can avoid it, then do so. Sell stuff, take on extra work, whatever you can.

Jobber_Jones

The default will obviously hurt my credit rating bigtime, right?

[Deleted User]

It'll look extremely bad on your credit files.

moneyhelpuser5

Very sorry to hear of the situation. How many months do you have left on the loan?

RelievedSheff

I would talk to Natwest as soon as possible and explain the situation.

You need to try and make the payments if you can. And obviously your partner needs to get out and find another job ASAP.

Are there things you can cut back on to scrape together the £140? Items you can sell?

Jobber_Jones

The loan is for 5 years, so there is a long time left!

Honestly, we live fairly frugally as it is and I can't see what we can cut back on. If I was to default, and set up a payment arrangement with natwest is it still possible I'd get into trouble? I would likely only be able to afford £50 a month towards it. Would I get bailiffs at my door?

[Deleted User]

Not if you're making attempts to repay.

RelievedSheff

Jobber_Jones wrote: »

The loan is for 5 years, so there is a long time left!

Honestly, we live fairly frugally as it is and I can't see what we can cut back on. If I was to default, and set up a payment arrangement with natwest is it still possible I'd get into trouble? I would likely only be able to afford £50 a month towards it. Would I get bailiffs at my door?

Talk to Natwest before it gets to the point of defaults.

They may be able to sort out some lower payments for a few months until you get sorted again and then make up the shortfall later on in the agreement.

You won't be the first couple ever to be in this situation.

BoGoF

RelievedSheff wrote: »

Talk to Natwest before it gets to the point of defaults.

They may be able to sort out some lower payments for a few months until you get sorted again and then make up the shortfall later on in the agreement.

You won't be the first couple ever to be in this situation.

Default or Arrangement to Pay are equally bad on your credit file.

foxy-stoat

You probably have done yourself a favour as if you havent taken out the loan you would of ended up using your high interest cards to pay each other until your credit runs out, including maybe some increase credit limits.

Try and sell some of the stuff that you bought while racking up £5,000 on the cards and cut back where you can, down value the car, phones, tv's and reduce your monthly spending.

I hope you cancelled your high interest credit cards when you cleared them, so you are not tempted to use them.