Author Topic: anyone ever gone into debt management due to failing to repay a loan instalment  (Read 750 times)

not me this time I swear to fucking christ. Mate of mine's about to do this he says, I can't spare the cash atm so this is defo happening. How mother fucked is he? what actually happens.

Twed

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Just one installment? Probably better just to let it get chalked down as a late payment if you're able to recover from it.

Shit Good Nose

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How much are we talking?

Is he declaring bankruptcy?

CCJ?

IVA?


As Twed says, if it's just the one payment and he's able to claw himself back, just take the late payment fee (unless it's one of those loans where it's just one strike).

I work with/ for a lady who has awful debt and she's going for something called a Debt Relief Order. Sounds really useful. Bit like a mini-bankruptcy but easier to come back from.

hermitical

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I went all the way, best thing I ever did.

petrilTanaka

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I work with/ for a lady who has awful debt and she's going for something called a Debt Relief Order. Sounds really useful. Bit like a mini-bankruptcy but easier to come back from.

I did one of them when I lived in England. the only difficult parts are making sure that any change in financial circumstance gets reported fairly quickly(I got a phonecall after my JSA got its annual increase of a few pennies to clarify) during the year it's in effect, plus the six years after when it's still on your credit record.

But those are basically easy street to get through.

Was it easy to prove you were left with 50 quid or less a week after paying off debt, bills etc? Can you remember how you got the advisor? Did you see them in person or was it done via phones/ online>

FerriswheelBueller

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Madhair - you ok mate? I’m genuinely asking, it sounds like you’ve had a rough few weeks.

Dex Sawash

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Seems an odd reason to bump him up to a management position.

Madhair - you ok mate? I’m genuinely asking, it sounds like you’ve had a rough few weeks.

I'm absolutely fucked out of cognisance mate, awful times, but this loan thing genuinely isn't me, it's a mate of mine.

Oh and it's two payments, roughly £350. I could give it him but it would tap me out (that's how much I have in bank atm almost exactly) and payday isn't til 25th. Been wracking brains on how to rustle up the money for Friday deadline. He acknowledges this is his own fault, took his eye off the ball.

Cardenio I

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Has he considered running a Marathon? Would be willing to sponsor him up to a tenner.

Oh and it's two payments, roughly £350. I could give it him but it would tap me out (that's how much I have in bank atm almost exactly) and payday isn't til 25th. Been wracking brains on how to rustle up the money for Friday deadline. He acknowledges this is his own fault, took his eye off the ball.

With the DRO, you get an advisor who rings up all the people you owe and tells them to put an immediate pause in your account. You won't have any more letters or phone calls from the people you owe money to and interest is stopped. Would this not help him?

In the short term I think he's best ringing up the provider and telling them he's not able to pay this month and seeing what they can arrange. My understanding is that they might accept partial/postponed payment and it's better to engage than to bury your head.

I know this because I had a bout of ill health years ago and buried my head through embarrassment and outright fear and defaulted on a credit card - which I think happens automatically after your second consecutive missed payment. Wise to avoid that as it affects your credit file.

Perhaps more sophisticated things exist now like that debt relief thing, but I understand it's preferable to contact your creditors even if informally to request some breathing space.

In the short term I think he's best ringing up the provider and telling them he's not able to pay this month and seeing what they can arrange. My understanding is that they might accept partial/postponed payment and it's better to engage than to bury your head.

I know this because I had a bout of ill health years ago and buried my head through embarrassment and outright fear and defaulted on a credit card - which I think happens automatically after your second consecutive missed payment. Wise to avoid that as it affects your credit file.

Perhaps more sophisticated things exist now like that debt relief thing, but I understand it's preferable to contact your creditors even if informally to request some breathing space.

Apparently, if you say 'this is seriously affecting my mental health' they generally back off.

Shit Good Nose

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As above.

A debt management plan for only £350 (which in relative loan terms is less than pennies) is massive overkill and to be avoided if at all possible, as debt management plans - useful though they are in their own way - leave a bit of a red flag over the person applying for it (as well as anyone else living at the same address, depending on what type of plan it is) for quite a while in a way that contacting the loan company and asking for an extension doesn't.

My mate is self-employed and took out a 10k loan for a new van.
A few months later, he had an accident and couldn't work for a while.

He contacted the bank and asked for a repayment holiday, but they refused.
Within a few weeks he was contacted by a third party who were working "on behalf of the bank".*

My mate explained his circumstances and said that he could only pay £20 a month as he had no money coming in.
The third party accepted this and said it could be renegotiated when he was working again.
It was never renegotiated.

Probably a year later my mate received a letter from the third party saying that, as it would take about 50 years to pay off at the current rate they would accept a single payment of**can't recall the exact figure, but it was under 3k** to clear the debt.
My mate paid up and that was the end of the matter. The 10k van probably cost him under 4k.

It didn't even fuck up his credit rating much either, as he'd only officially missed one payment.


*they'd actually bought the debt

You have to be careful with this though I understand. It can be reflected in the credit file that the debt was paid in full or partially depending on the agreement. Partial payment leaves a stain on the credit file.

You can rebuild your credit score though and if the OP's mate is struggling, it would probably be unwise to apply for any credit in the near future.

Got a few texts from Natwest about me missing one of my two loan payments. They'll have to wait til Friday the cunts.

FerriswheelBueller

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I'm absolutely fucked out of cognisance mate, awful times, but this loan thing genuinely isn't me, it's a mate of mine.

Feel free to PM me and rant away. Always happy to listen if that’ll help.