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Total Balance of a Loan on Defaul

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Hi all,

I have a loan with lendable for £5500 of which £5256 is still outstanding - having reviewed my loan agreement they say that the total amount repayable is over £7000.  When they default me do they charge the outstanding currently on the account or the total amount repayable on the contract?  This will change the length of my DMP significantly and will impact my decisions regarding offering F&F settlements when the time comes.  

Any advice or insight is much appreciated! 

Replies

  • edited 14 March at 1:46PM
    Willing2LearnWilling2Learn Forumite
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    edited 14 March at 1:46PM
    Once Lendable default the account, then the contractual interest and fees are frozen.  That is part of the reason why we always recommend that folks delay the start of their DMP by six months, withholding contractual payments during this time.  The delay will usually result in the account being defaulted nice and early.  The total amount payable on your DMP, would be the account balance at the time of the default.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

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  • RebeccaO26RebeccaO26 Forumite
    16 posts
    10 Posts
    Once Lendable default the account, then the contractual interest and fees are frozen.  That is part of the reason why we always recommend that folks delay the start of their DMP by six months, withholding contractual payments during this time.  The delay will usually result in the account being defaulted nice and early.  The total amount payable on your DMP, would be the account balance at the time of the default.
    Fantastic - thank you.  As I'm not sure whats going to happen with work over the next couple of months with the Coronavirus scare I'm going to wait out the 6 months and try to increase the emergency fund and let everything default nice and early before making payments.  

    Last thing I want is to enter a DMP and then end up not earning a wage because my work is closed!  I think the fear of losing the DMP outweighs the fear of not making payments for 6 months.  

    Thank you for your insight!  Everyone here has been so lovely so far and so helpful, I honestly don't think I'd be feeling as positive as I am right now without this community to support.  
  • Willing2LearnWilling2Learn Forumite
    6.3K posts
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
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    ...Last thing I want is to enter a DMP and then end up not earning a wage because my work is closed!  I think the fear of losing the DMP outweighs the fear of not making payments for 6 months.  
    If things go pear-shaped at work because of the coronavirus, then you would still start your DMP after six months.  But in that instance, you would only offer token DMP payments, whilst your work situation and income stabilises.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
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