loan arrears...and help

[garycref]

hi, I owe the bank 8000 after I took out a loan, when I took it out two years ago I was earning around 500pound per week, now after being unemployed for the last seven months I am back in work but lucky if I take home 250 per week, after all my living expenses I have no spare for my loan payments.....I've missed only two payments so far as I also have insurance that paid while I was not working...

What should I do? Is there any help I can get? What if I ignored the letters and moved address ect

I simply cannot pay up at the moment and it's stressing me out!!

Any advice good or bad....oh and as for a payment plan with the bank they won't have any of it!!

[Pigletion]

Do not just ignore it, you can ruin your chances of ever getting a mortgage etc. again.

The Citizens Advice Bureau may be able to help. I'm pretty sure there is help you can get (and the current financial situation may be in your favour, although it may depend on whether you were given a loan you couldn't really pay in the first place).

When did you last ask for a restructuring of the loan? I only ask as due to the recent financial issues the banks are trying to do all they can to put themselves in a good light. If you ask to speak to the manager and say how much you can give them a month and restructure the loan to a longer period with lower repayments, they may be more amenable.. Otherwise they can demand the full amount, you won't be able to pay and you'll have to declare yourself bankrupt which costs �500 anyway! I'm sure they'd rather take your money and your interest (and have a customer) for a longer period than not actually see their money again.

Also, do you have payment protection insurance? Was just wondering if you did that there may be something there that could be done?

[johnnybriggs]

You need to take action quickly with 2 full missed payments. A third payment could cause a default notice to be issued.

Its important that you make some kind of payment, even if it is only a half or a quarter payment. Even a token payment like �5 or �1 is better than nothing.

According to the Debt Advice Foundation you should put together a statement of affairs - your income and expenditure to show how much or little you can afford. If you need help doing that you can look at the information on the CAB website or www.talkaboutdebt.co.uk.

[PeteHull]

Nowadays being in debt isn't classed as a criminal offence as it was in earlier times, however, ignoring the problem and moving house to evade payment is.
You really need to take notice of the 2 previous posters, if you seek advice and put everyone concerned in the picture it will show them you are a caring and honest perso and they will do all they can to help you.

Best of luck with it, when you've paid it all back you'll look back and feel good, better than dragging it round with you as you try to hide.

Pete