How to Default On Exiting B. Loan

[prinny]

Hey, Im new to this so please bear with me. Due to serious financial problems (ill health), going to have to stop paying a personal loan which will then mean an overdraft debt too. Dont even know where to start. Any help will be hugely appreciated.

[leclerc]

Re: How to Default On Exiting B. Loan

Have you spoken to your lender about your financial difficulties?

[prinny]

Re: How to Default On Exiting B. Loan

been too afraid to, cos we expect that if we let them kinow whats going on, they will pinch all our benefits and leave us with nothing. In process of getting all paid into new account.

[leclerc]

Re: How to Default On Exiting B. Loan

been too afraid to, cos we expect that if we let them kinow whats going on, they will pinch all our benefits and leave us with nothing. In process of getting all paid into new account.

Speak to them and then repost on here as to what they say. I know they may sound like the big bad wolf but they don't bite .
Are you incurring bank charges from your current account provider?

[prinny]

Re: How to Default On Exiting B. Loan

No charges as of yet. But will all start when we get our money put elsewhere i would imagine. Will go see the bad wold, i mean bank manager once we have chance to take this weeks benefits money out !! Will report back soon. thanks

[TomThumb]

Re: How to Default On Exiting B. Loan

Hi,

Personally I think you were wise to get the parachute account setup first... ensure your benefits get paid into it and then see the bank.

They'll probably ask you to fill out an Income and expenditure form and maybe even contact their central "financial assistance" dept. No doubt they'll give you the names of the debt charities and advise you to contact them.

Just to be clear, they cant MAKE you do either, only a court can force you to reveal this info if they so order. Likewise if you wish to deal with this debt yourself thats your choice. Lenders do tend to prefer you going through a debt charity but its your decision. I havent personally.

How old is the personal loan? was their any PPI taken out on the loan?

S.

[leclerc]

Re: How to Default On Exiting B. Loan

Hi,

Personally I think you were wise to get the parachute account setup first... ensure your benefits get paid into it and then see the bank.

They'll probably ask you to fill out an Income and expenditure form and maybe even contact their central "financial assistance" dept. No doubt they'll give you the names of the debt charities and advise you to contact them.

Just to be clear, they cant MAKE you do either, only a court can force you to reveal this info if they so order. Likewise if you wish to deal with this debt yourself thats your choice. Lenders do tend to prefer you going through a debt charity but its your decision. I havent personally.

How old is the personal loan? was their any PPI taken out on the loan?

S.

In the hardship forum, they are all there because I asked them all for it on the basis of financial hardship claims.

In fact as I still have the blank forms on my puter, a copy is attached to this post.

[Amethyst]

Re: How to Default On Exiting B. Loan

Definately move your benefits to a new account,they don't take long to move - most benefits will move with the next payment after you give them the account details - then speak to the bank and let them know your situation, they may be able to reorganise the loan.

Why will stopping paying the personal loan automatically mean an overdraft debt ? Do you already have an overdraft which is becoming unmanageable ?

Also I think it is a good idea to complete an IE sheet, to see if you really have to stop paying the loan, or if you can move things around - then you can approach the lender with some form of plan of how you are going to deal with your finances overall whilst things are difficult for you, that way they should be more sympathetic and willing to help. They have to abide by the lending code which has a big section on financial difficulties - its linked in leclerc's signature. It also outlines what responsibilities are on the customer - which basically, is keep them informed.

Do you have any PPI on the loan that you could claim on ?

(((((((((hug))))))))))) for you, you are doing right by dealing with things upfront reather than letting things slide then trying to sort it out after the event.


p.s. if you have any other accounts with barclays, savings etc then I'd shift those to an unlinked bank too, just incase they decide to try using their '' right'' of offset.

[ByTheWay]

Re: How to Default On Exiting B. Loan

Thanks for this Ame, prinny is my RL friend, so we are going to work on this later this afternoon