Help with Lloyds tsb loan

Deuce_2

Hi all,
First time here but ive read through alot on here and your full of top advice:beer:

Ok,took out a loan with Lloyds 3 years ago and have paid them back on the dot each month without fail,recently ive worked out my money and i cannot afford the 260.00 per month payments anymore,what i wanted to ask is if i cancelled my direct debit for my loan can Lloyds then touch any of my partners savings as we have a joint account,just a bit worried if i did that they might take a large chunk of her savings.Also what happens if i cancel the direct debits,do they contact me to make another payment plan or do they take you straight to court,as you can see i dont know much about these things and dont wan tthem to touch my parnters oney is all.

Thanks in advance if you can help me.:o

TangledMemories_2

First thing you need to do is discuss your situation with them. DON'T cancel a direct debit as your way of telling them "I can't afford this anymore" - it won't do you any favours.
Once you've discussed it with them, then you'll be in a better position to figure out which way to turn.
A bank shouldn't dip into your savings whenever they feel like it and if the loan is in your name, it is only you that is liable. Your partner only becomes involved if the joint account gets into trouble.

CLAPTON

a. move your saving immediately, the bank can and will remove money from a joint a/c.
b. I'm a little curious as you how you have savings if you can't pay the loan back.
c. if your income goes into their bank then open a new a/c elsewhere
d. discuss the matter with the bank and explain your situation... why can't you continue with the repayments... have your circumstances changes etc.
e. if you dont make the necessary payments its likely they will default the a/c after a few months... this will be marked on your credit file and will trash it for 6 years.
also if you have any joint a/cs (not savings) with your OH, they will be affected by your financial association.

Deuce_2

CLAPTON wrote: »

a. move your saving immediately, the bank can and will remove money from a joint a/c.
b. I'm a little curious as you how you have savings if you can't pay the loan back.
c. if your income goes into their bank then open a new a/c elsewhere
d. discuss the matter with the bank and explain your situation... why can't you continue with the repayments... have your circumstances changes etc.
e. if you dont make the necessary payments its likely they will default the a/c after a few months... this will be marked on your credit file and will trash it for 6 years.
also if you have any joint a/cs (not savings) with your OH, they will be affected by your financial association.

I dont have savings my partner has savings which i wouldnt want them to touch,my money situation has changed and i dont get the same amount as i used too,if i cancelled the dd and defaulted my account,what happens after that,do i have to pay the whole amount back in once go or in instalments?

thanks for your reply and help.

CLAPTON

They will obviously want all their money back in one go (plus lots and lots of charges of course) so its daft to just ignore the problem.

So you must contact them and explain the situation... they may be willing to set up a lower reapyment plan. They will possibly ask for an income and expenditure sheet to show where your money is going and to show you can't repay at the full rate.
If you can't come to some agreement they can take you to court. There the judge will decide on a monthly repayment sum under a CCJ.

jonesMUFCforever

Why do you not discuss with the bank a rescheduled loan?

If you lengthen the term of the loan your repayments will come down although you will pay more interest in the longer term.