Advice please - about to default on Loan and OD

Ayrshire_D

Hi,

I have been reading through this forum solidly for the past few weeks every time I get a spare few mins in work (I'm at page 743 just now, lol)

When I sold my house I paid of all CC Debts, etc, and put deposit for our new house

I had a few grand left to cover payments for a loan that I had, (I didn't have enough profit from house sale to pay this loan off)

I have been making the payments on time every month since taking out the loan, but the spare cash has run out and I am now making the payments to it from my overdraft.

In approx 3-4 months I am gonna hit my OD limit and will not be able to make payments to this loan.

I have cut back on everything I possibly can. I don't know what I was planning on doing when the spare cash ran out, I guess I had my head in the sand and just figured out "something" would pop up and it would all sort itself out.

The loan was for £25000 and is with RBOS. with the interest etc added on there is approx £23k outstanding

Payments are £377 a month. My OD Limit is £8500. in march I will have approx £1700 left of this available.

If I can't sort something drastic out in time, and default on this loan and OD, what will happen next? Can I arrange to pay say £50 a month to them until I can figure out a way of drastically increasing my income?

EDIT - I have just been accepted for an Abbey current account online so I have a new bank account sorted for when the sh*t hits the fan.

RAS

Welcome

We really need to see your Statement of Affairs before we can advise any further. See here and we will help if we can.

http://forums.moneysavingexpert.com/showthread.html?t=107280

If that does not work, you need to talk to one of the debt charities which you can find here

http://www.moneysavingexpert.com/loans/debt-help-plan#help

boredofbeingathome

As RAS says, that way everyone can maybe help you a bit.

CCCS_Sarah

Hi Ayrshire,

Try not to panic! You are in the right place to get things sorted. Now you have your new account get any income paid into this and any priority expenditure coming out i.e. rent, ct, gas etc the most important thing is keeping these up to date.

Start putting together a financial statement this will detail ALL you income and expenditure. The amount you have left is the amount to offer you unsecured creditors. If you need any help completing a financial statement CCCS have a free online debt advice facility called Debt Remedy – does not take too long to complete and it will let you know the best solution for you problems. This link will take you directly to Debt Remedy.

Once you have put together your financial statement post in up on here and people will be along to help you cut back on areas. Is there anyway you can look at increasing your income? If so every penny will help!

From your user name guess you live in Scotland?? If so collection process is different to England so if you are unsure of anything give me a shout

All the best

Sarah