what can i do?

Question

i have a personal loan and the payments are starting to cripple me but i am still paying them... havent missed a single one... i have made an appointment to see an advisor to see if i can skip a payment over xmas and or lower the payments in the long run by spreading the loan a little further and not paying insurance on it. do u think this may be possible? is this my best option? is there anything else i can do to help the situation?

Answer 1

Well done for not missing any payments.

This leaves you plenty of options.

Before you go and see the adviser do a budget.

you will need to list all income and expenditure.

be realistic, if you by fags, budget for them, if you go out socialising budget for that too. If you dont you wont be able to keep to the budget.

Armed with this you should be able to negotiate the loan being rescheduled over a longer term. The lender would prefer you were honest and realistic than miss payments.

This definately your best option.

missing payments or borrowing more money will both harm your credit rating.

remember they lent you the money and under the banking code they had a duty to you to make sure you could afford the repayments both when you took the loan and whilst you were paying it.


good luck.

Answer 2

If you haven't missed any payments they should we willing to help. Don't drop the insurance though, you never know what might happen. They will most probably just extend the loan so you pay over a longer period.

Don't get in the trap of using another loan to pay off this one or making payments on credit cards as it catches up in the end.
If you are honest and realistic with the loan company they should be only to happy to help, after all its in their interest to keep you happy.

Answer 3

Entering into a form of credit agreement should not be taken lightly. Although you have a good payment history generally, any suspension of payment will leave a greater unpaid balance which will still need to be repaid within the existing teimescale of the application. It could also go against you if you require a loan in the future as you will have to declare if you have entered any agreement with previous loan companies. It may well be wise to look at obtaining a loan on the internet such as www.cahoot.co.uk who have good rates, use this to repay the existing borrower and enter a repayment period suitable to your current income. You can also mention in the application that it is to consolidate existing debt. This way you will avoid any black mark against your credit rating, repay the existing debt, start anew with repayment terms which are more suitable to your current financial situation.

Answer 4

If your credit is good you could get it refinanced by another lending company and lower the payment and possible get a lower interest rate at the same time.That depends on how much you've paid off on your loan. Good luck!!

Answer 5

if you're strapped for cash then the best place to go might be the citizens advice bureau, they are free and impartial and carry more weight than an individual.
They will do a benefit check for you too.
I will say though that they may, if your circumstances are bad, have to refer you to a financial advisor, but they are a good first bet.

Answer 6

Look into other options for refinance before you talk to your current lender's representative. If you can tell them specifically that you have other options they are much more willing to be cooperative. Don't beat them to death with it but be sure to tell them what others are offering you.

Answer 7

Yes there is one more thing you can do, DONT get the loan in the first place

Answer 8

talk direct 2 ur lender they r always up 4 negotiation

Answer 9

yea, talk it over with a legal adviser, good luck