Payment plan

Winginglife

Hi

Im currently on a proven plan with Lloyds  which is due to end may 

Loan payment is currently £647 a month

arrears was £3021
now £1899 
Loan stands at £6700
When plan started loan was at 11000

i also have a Lloyds credit card which was  £1700 now only £181 left to pay

i also had a overdraft which was £900 this has been paid off now.

however I should’ve able to pay credit card off and get arrears down to £1500 by May this would leave me having roughly £7500 with remainder loan and loan arrears amount. The proven plan was offered with offer of consolidation loan after plan however my current APr is 17.9% so unsure what this would leave me paying after as you can image overpaying arrears /cc and loan payment is writing me off has anyone been through similar plans. In a perfect world I’d be able to clear the remainder arrears but it’s impossible at the moment.

Im currently on leave from work due to children with disabilities waiting for special schools so my finances are not going to get better anytime soon. 

Brie

Might just be me but I don't quite understand what you are saying.

Is it that by May you will have cleared the credit card and the overdraft?  And that you will owe £9000 in total for the loan? (arrears 1500 & loan 7500)

And that your APR is currently 17.9%.

What is the consolidation loan APR?  What do they say will happen if you say no to a consolidation loan?

sourcrates

Please don’t be taken in by the bank’s supposed willingness to offer you a consolidation loan, accepting this will just keep you in hock to them for many more years paying silly rates of interest.

Given your circumstances, with the debts being unaffordable, you will be much better off taking debt advice, and possibly defaulting on the loan, in which case all interest will be stopped, and your balance will reduce much quicker.

Banks own payment plans seldom favour the debtor.