debt repayment proposal

lauraocal

I'm waiting for a self help pack from the national debt advice service as I need to make a proposal to a creditor to repay a secured loan I have, but it's been a week already and I still don't have it.

I've never done anything like this and I'm not sure how to do it.

It was a flexible business loan from HSBC. £60,000.00 over ten years plus I had a £20k overdraft, both were secured against my property.
My business went under at the end of last year.
I got the loan in april 2004 and paid it until november 2007.
Can I put it in the proposal to extend the length of the loan? Or better still could I ask that the interest be stopped?
There's no way I can afford to pay it if the interest is still to be paid as I was paying £707 a month and around £370 of that went onto the interest payments each month.
The balance currently stands at around £66k (£45k on the loan and £21k on the overdraft).

Can anyone help me with this proposal please?

lauraocal

Can anyone help me please I'm desperate.

hypno06

Hi there, I don't know anything about secured loans so can't give you an answer - what I would suggest though is that you call CCCS, National Debtline or the CAB right now, and ask to speak to someone who can advise in this situation.

Also, are you in communication with HSBC - it always looks better if you are keeping them fully informed and trying to work with them, rather than against them.

Good luck, and sorry I have no further ideas.

Runnybabbit

Hi, This is the 1st time I've used this forum so please bear with me. I too have the same problem with HSBC with my business going under in Jan 2008. I contacted my business manager immediately who consequently ignored my cries for help and 'sat on' my case for a further 5 weeks despite me sending emails and phone calls left on his ansa-phone. I consequently have gone into further debt, I contaced CCCS as advised by friends, and they were very helpful, BUT, please remember if you use this service then I believe it affects your credit rating. I have since had to remortgage, I'm lucky that I can do that, so now I have to pay off £154 per month for the next 12 years on a Cap & Repayment. Please also remember that if do decide to go the same route as me, always ask the bank for a Settlement Figure. They then knock off all the interest which would be of been paid for the next how many years you took the loan over - I had £3k knocked off my debt - I also did the same with some suppliers and got about £2k reduced. I wish you lots of luck and I will certainly by complaining to the Financial Ombudsman regarding the services of my bankers - I might even get the interest back for the month they ignored me?!! LOL.

CLAPTON

Its impossible to say without seeing your full details
Can you post up an SOA showing your income and spending and the full debt details...
are all the debts in your name

How much is the property worth, how much is the mortgage, is the property in your name only?

Are you financial troubles likely to be temporary or are things not likely to improve?

lauraocal

Monthly
Income = 1278
Outgoings = 880
Priority/secured debts; HSBC £66k, Eon £1,000, Mortgage arrears £240 (1 mths)
Unsecured debt TSB overdraft £1100, Catalogue 1 £500, catalogue 2 £500

Our income is probably unlikely to change much if at all.
I am communicating with HSBC, our debt has been passed onto their collections dept' but they are expecting the proposal, no details have been discussed as to how much we can pay or anything.

Property valued april 07 £95,000, Mortgage balance stands at £25,000
All the debt is in my partners name except TSB (Joint names)

lauraocal

We did have a further £2k debt from various other companies (merchant services, rent arrears ect) but I convinced them to write off our debt.
one catalogue doesn't need paying until feb 09, the other expects £40 a month and I didn't account for it in my outgoings, payments are up to date.
I asked the mortgage company for a payment holiday but they wont although they are allowing us to pay £50 each month on top of our normal payment until the arrear has been paid back.

lauraocal

Please don't give up on me now!!

So_Sad_Angel

Hi Laura,

I have just read you post & can understand your frustration. Although I am not an expert I have many years banking experience & worked in the business banking field.
Couple of sugestions (that you may have tried already)
1. Chamber of commerce locally . They have people with years of business experience & may offer alternative source of guidance.
2. National Debt line (charity) have a business helpline.
National Debtline - Website: National Debtline Telephone: 0808 808 4000

3. Speak to the Banks collection team & see if they have advisors to assist with what they are looking for in terms of repayment. I agree with Hypno here that keep communications open & actively `pester` them for help is always a good move.

4. You don`t say if your company is Ltd...is there an accountant that can help.

5 Finally CCCS or Nat Debtline speak to them & go through the debt remedy online (CCCS) - you may have done this already.

Sorry for long post but the main thing is to make the Bank see that you actively are seeking a solution. They will appreciate your honesty & determination to find a solution.

Let us know how it goes,

Cheers hun,

Angelxx

lauraocal

No it wasn't a limited company, just a sole trader.
I have been to the national debt line and they just told me to sell up and pay them off.
I'm not willing to give up my home, maybe a little foolish of me but thats how it is.
I'd rather pay them off for years than loose it.

CLAPTON

lauraocal wrote: »

Monthly
Income = 1278
Outgoings = 880
Priority/secured debts; HSBC £66k, Eon £1,000, Mortgage arrears £240 (1 mths)
Unsecured debt TSB overdraft £1100, Catalogue 1 £500, catalogue 2 £500

Our income is probably unlikely to change much if at all.
I am communicating with HSBC, our debt has been passed onto their collections dept' but they are expecting the proposal, no details have been discussed as to how much we can pay or anything.

Property valued april 07 £95,000, Mortgage balance stands at £25,000
All the debt is in my partners name except TSB (Joint names)

Can you clarify

your outgoings are 880?
Is this a figure you can live on month in month out for say 5 years...
so does it make allowance for all the annual and oneoff type things like e.g. car costs (tax, MOT insurance , repairs etc), an emergency fund for the house (tile off the roof, boiler breakdown)), things like clothes, xmas expenses, birthdays, annual insuances (house and contents)
...its always best to post a full SOA so we can see whats included

Also can I ask again .. is the house jointly owned?


Are you currently paying anything to the unsecured debts?