im in a spiral of bank charges&need to stop!is there a company that will give me a loan?ive bad cred&sick!?

Question

i am plagued by bank charges which when taken out leaves me with nothing to live on&pay bills etc&then puts me over my overdraught limit&im charged yet again!is there a good company that is willing to give me a loan to pay everything off,even though i(as a result of the bank)now have a bad credit rating&am considered disabled&unable to work?thanks all

Answer 1

Don't take more loans. Sit down and list everything coming in and everything going out - from loans and credit cards to rent to food, Sky TV, cigarettes, travel expenses, the lot. The charges on your bank account are distorting the picture. You may find that in theory you've got just about enough to cover what's going out, if it weren't for charges and overdrawn balances from the month before.

When you've done this, approach your bank with the information. I am a credit counsellor for the UK's most recommended bank, and can tell you that although not all banks are as good at it as others, we all have an obligation under the Banking Code to "treat cases of financial difficulty sympathetically and positively" but to do this, there needs to be dialogue between you and the bank. Explain the problem calmly, tell them you've got all the figures in front of you (make sure you get balances and payment amounts for all your credit cards and loans), and ask what they recommend.

It may be that they suggest withdrawing your bank account from you, which although it sounds drastic means you won't incur an more charges, and usually the interest you are charged for your overdraft is reduced or frozen. You can then open a new account somewhere else with a clean slate - no charges or overdraft, and this means you can start to make some agreed repayment towards you current debt. The bank will negotiate an affordable repayment with you, sometimes as low as £10 per month for a debt of £1000 as an example. Even with interest frozen, this will clearly take a long time to repay, but you should be able to overpay or increase the amount once your situation improves.

Be aware that this kind of arrangement will be recorded on your credit file, but it looks ten times better than a credit file covered in adverse information about charges and returned items on your bank account, and you shouldn't be too worried about your credit file for now, as new borrowing is the last thing you'll want to take on in the near future.

If you find your bank unhelpful, follow their complaints process through fully, and whilst doing so, approach the Consumer Credit Counselling Service, at www.cccs.co.uk or on 0800 138 1111. They will contact your bank, and if necessary other creditors, for you and negotiate a repayment plan on your behalf. They are a registered Charity so it costs you nothing, and they provide an excellent service. If you have a lot of creditors, CCCS can be even more useful as once repayment plans are set up with all your creditors, you make one monthly payment to the CCCS and they distribute it for you.Their website is full of useful advice.

The best advice though, and remember this is from someone who has been trained and employed to deal with these situations for six years, is not to bury your head in the sand. You must open dialogue with the bank immediately.

Good luck!

Answer 2

I would try not to get another loan but I would get all bank charges back, perhaps that would help?

If this is UK you claim back 6 years worth of charges - these would include "late payment", "over limit", "referral" and others. These charges are illegal in law. This also applies to Credit Cards as well.
I have found an excellent site use this link:

http://www.penaltycharges.co.uk/...

This site will guide you through recovering your own charges therefor not paying huge financial institution costs. Everybody on the forum is very helpful.

Answer 3

Please do not try to get another loan!

You will only end up paying high interest charges.

Look at your financial situation, and be honest with yourself. Sorry if this a bit harsh, but I have been in your situation.
Borrowing money never solves a problem. Look to the future, and if you have concerns, get financial advice.

Hope this will help you, and good luck. Remember, there are many others like you, so never be afraid or ashamed to ask for help and advice.

Answer 4

Sorta, yet that would could be exceptionally undesirable company to the place their presence is purely worse than loneliness, because of the fact i've got heard that purely an hour of interplay with human beings produces an identical style of euphoria that obtaining a enhance does, yet i do no longer understand how scientists can understand that definitively.

Answer 5

Im sorry to hear that dearie, but yes I am with you. I can very much relate with the same mess you are having. I know there are many good resources mentioned here, but the one Ill recommend to you is the NHBS from which I got credit assistance before.

http://www.newhorizon.org

Answer 6

You can get bank charges refunded as its illegal to charge penalites. I've just received nearly £1500 in refunded bank charges! See

http://www.consumeractiongroup.co.uk/forum/

http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1141050760,24632,

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/671-letter-preliminary-approach-repayment.html

http://www.ivafreehelp.co.uk/bank_accounts_reclaim_bank_charges.htm

Answer 7

welcome finance, they gave me a loan when i was in deep deep shi t with my finances