About to default on loan

davetrg

Hi all,

I am in dire straights financially and will have to default on a loan on the 1st December. The loan is with Halifax. I also have an overdraft, credit and mortgage with them.

My question is if I default on the loan will Halifax cancel my overdraft and credit card?

Are they viewed seperately or can Halifax take a view across all the products they provide me.

Thanks in advance for any help you give.

[Deleted User]

There's no guarantee, but it's certainly a strong possibility that they will reduce their exposure across your borrowing where possible.

Gaz83

Yes, there is a possibility. Especially with the overdraft, which, if cancelled, becomes repayable on demand.

Brock_and_Roll

If they are doing their job and have half decent systems (always questionable!), then they will definitely cancel both limits - otherwise they would be in breach of their own internal credit policy.

Willing2Learn

Hi davetrg and welcome to the forum

davetrg wrote: »

I am in dire straights financially and will have to default on a loan on the 1st December. The loan is with Halifax. I also have an overdraft, credit and mortgage with them.

My question is if I default on the loan will Halifax cancel my overdraft and credit card?

Are they viewed seperately or can Halifax take a view across all the products they provide me.

Do you have your salary paid into the Halifax account with the overdraft. If yes, then I recommend you open a new basic account with any bank that is not part of the Lloyds Banking Group. This would protect you by ring-fencing your income.

If you want advice, support and guidance with regard to your financial circumstances, then I recommend you post up your Statement of Affairs (SOA) into a new thread on the main Debt-Free Wannabe (DFW) board.

davetrg

Thanks all for your reply