Santander Bank Loan

Cazzaroo

Hello,
I took out a bank loan approximately 3 years ago and I have just over a year to go.  I did this to consolidate some credit card debt.  Now, I'm struggling to afford this loan each month (£365 per month) on top of bills etc.  It has never been easy to find the money to be honest but I've been really struggling for the past year or so due to some family/car/house issues I've had.  I approached the bank in the first instance last year and asked for a payment holiday or an extension to lessen the monthly repayments but they said no.  They said the only way they could help me is by applying for a new loan which I was declined for due to my worsening credit score.  I have approached them again but they are refusing to help me.  The advisor said that the only way they would help is if I went into default but the payments are taking by DD when I get paid.  I have been borrowing on my mortgage every month for some time to help me keep on top of things but that's getting too expensive now, too.
What are my options?  I am budgeting elsewhere.
Many thanks
Caz

[Deleted User]

Your options are to maintain payments (by cutting costs if needed), borrow elsewhere or default.

If the first two options are not possible, then the third will at least freeze interest but will impact your credit file. 

If you want to maintain current payments, visit the DFW boards for advice on cutting costs.

John_

What happened to the plan that you’d made; the one that included car maintenance, living expenses, the repayments on this loan etc? Was there one, or was this just kicking the can down the road a bit with no actual plan to sort your finances out?
it sounds as though you have been living beyond your means for a while. The only ways forward are to increase your income, decrease your outgoings or default on your agreement.
Are you able to get more hours at work, or take on a second job?

Cazzaroo

No opportunities at the moment to get more hours at work and I've had no pay rise in the last 2 years (NHS GP surgery as a Medical Secretary).  I also have a 2nd job cleaning, 1.5 hours 5 days a week.  Trouble is, costs tend to increase and who knows what's around the corner when it comes to things that are out of your control e.g. leaking bathroom and a crappy car.  Unfortunately, I got into debt with the credit cards, in the first instance, because I was made redundant and I had trouble getting a similar paid job so opted for anything, which I now enjoy.
I just feel the Bank are being less than helpful and wondered where I stood.

DCFC79

Cazzaroo said:

No opportunities at the moment to get more hours at work and I've had no pay rise in the last 2 years (NHS GP surgery as a Medical Secretary).  I also have a 2nd job cleaning, 1.5 hours 5 days a week.  Trouble is, costs tend to increase and who knows what's around the corner when it comes to things that are out of your control e.g. leaking bathroom and a crappy car.  Unfortunately, I got into debt with the credit cards, in the first instance, because I was made redundant and I had trouble getting a similar paid job so opted for anything, which I now enjoy.
I just feel the Bank are being less than helpful and wondered where I stood.

Post up a soa.

You have 2 options which have been pointed out.

Remember your credit score is only seen by you, your credit history is what is important.

John_

The bank don’t really have much room to be helpful. If they lend you more they know that there’s a good chance that you’ll complain later that they should have stopped your borrowing and there are rules now about how to deal with persistent debt.

I think that to get some properly informed advice you need to post a full statement of affairs in the Debt Free Wannabe section.

DCFC79

I think its good you have been rejected by the bank, a loan isn't what you need.

Cazzaroo

DCFC79 said:

I think its good you have been rejected by the bank, a loan isn't what you need.

Yes, you are absolutely right but that is what they suggested before I was rejected.

Moneyminded

Right so you have just over a year left and you need to find £365 a month to finally be rid of the debt. If you post a statement of affairs/ SOA i'm sure someone will be able to suggest areas you could save some money each month. Some suggestions of things to think about below 

• Do you have a spare room that you could rent out to a lodger?
• Could you get another cleaning job for a few extra hours a week? 
• Do you shop at Aldi/ Lidl instead of the more expensive supermarkets?
• Are you entitled to any benefits you aren't currently claiming? 
• Do you have anything lying around the house that you don't need/ use any more that you could sell? 
• Could you do some online surveys/ mystery shopping jobs in your spare time to make some extra cash?
• Do you have a hobby that you could make money from?  

You've done so well to get this far, you're nearly at the end. Keep going just think how amazing it will feel next year when it is fully paid off