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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Paying loan off HELP plz

24 replies

1Rose19 · 15/04/2019 18:00

Hi everyone
I am new mums net i am sorry if i have posted this in the wrong place.

I took loan from TSB bank normal current account in 2016 for £8000.
Since july 2016 i have been paying £242. A month for 32 months and i have paid so far £7,744.00. However i still have £3,171.00 debt remaining . My situation is not good atm i am stay at home mom with second baby and out of work atm and husband only works. I wanted to know if anyone has been in my situation and how can i pay without paying interest?
I cannot move my loan from normal current account to credit card with 0% interest and that has certain months where u have to pay back .

OP posts:

InspectorClouseauMNdivision · 15/04/2019 18:08

It's best if you speak with TSB. As far as I know they also offer payment holidays. They could possibly add months and spread the remaining balance, but I can't really say for sure.
All banks have a number for if you have trouble to pay. Have a look at their website

AwkwardPaws27 · 15/04/2019 18:09

I don't think you can avoid paying interest if you took out a loan that had interest. You would have signed an agreement with a set amount of interest and agreed to pay it. If you are struggling with the repayments you could ask citizens advice for advice on debt management?

WoogleCone · 15/04/2019 18:14

You'll have been paying part loan, part interest every month so what's left is still loan amount with some interest.

Unfortunately it's a binding agreement that you're unlikely to get out of as the terms and amounts were set out to start with. If you speak to them they may well offer a repayment holiday though or have another alternative if you're struggling.

Are there any other areas of spending you could cut back to help? Posters here may be able to help with some ideas if you can give us an idea of expenditure?

ladybirdsarelovely33 · 15/04/2019 18:17

That does sound like a very high amount of debt left. What was the interest you were charged when you took the loan out?

SnowyAlpsandPeaks · 15/04/2019 18:19

Agree with others, when you take a loan you agree to the interest. I’ve never heard of not paying interest- and I once owed 46k I looked at every option!

BarrenFieldofFucks · 15/04/2019 18:23

Presumably your partner shares his income, if you are having children together?

morefoolyou · 15/04/2019 18:23

Loans like this are usually front loaded with interest so you may have paid off much of it already.
I suggest you call them and ask to speak to their debt management team. Tell them that you've had a change in circumstances and you foresee some financial difficulties. You are doing the right thing by being proactive.
Ask them whether they can either refinance the loan, or give you a temporary concession with lower payments for a period of time

Mintandthyme · 15/04/2019 18:26

Yes please do call them. Don’t fall into arrears.

Original poster

1Rose19 · 15/04/2019 18:28

Thank you for replying everyone.
I am not spending alot i live on £600.00 a month which includes paying the debt ,bills and food shopping everything .
I was wondering if i can still pay this without being charged but like everyone above said there is no going out. :(

OP posts:

bridgetreilly · 15/04/2019 18:31

I don't understand why you think you shouldn't have to pay interest. That's how loans work. What was the term (length) of the original loan? Five year? Four years? You're expected to pay for that whole time, no matter how your circumstances have changed, to cover the whole loan amount plus the interest.

If you're having difficulty meeting the payment, then yes, talk to them and see what options there are. Don't just stop paying, unless you're happy for them to send the bailiffs in.

araiwa · 15/04/2019 18:44

The entire loan market would collapse if borrowers could decide to not pay interest

BarrenFieldofFucks · 15/04/2019 18:59

Again, what role does the children's father play in your finances? What was the loan for? Any chance of going back to work?

Tbh it sounds like a fairly standard loan. What was the term? Sounds like interest at around 9-10%, which while high, isn't extortion.

SileneOliveira · 15/04/2019 19:23

how can i pay without paying interest?

You can't. Obviously.

Well I saw obviously, but OP seems confused between what a current account, loan and credit card is.

Original poster

1Rose19 · 15/04/2019 20:51

I never said i shouldn't pay interest !
Also to those saying i shouldn't miss a payment. I have not missed a single payment and i don't plan to either, i still want to pay but i guess i was thinking wrong

OP posts:

SileneOliveira · 15/04/2019 20:58

In the very first post you say "how can i pay without paying interest"

The ONLY way around this would be to ask for a settlement figure and pay off the outstanding balance in a lump sum. I am assuming this is not an option.

missymayhemsmum · 15/04/2019 21:08

You have a few options, talking to the bank and negotiating a lower payment/ asking them to freeze interest because you can't afford the payments at the moment.

Seeing if you (or your husband) can get a lower interest rate elsewhere and asking for a settlement figure to clear the loan. (the bank should knock off some interest for paying early)

If yours and your husband's joint income doesn't cover everything, going into a debt management plan or similar with a free debt advice service like payplan or stepchange- you only pay what you can afford, but this will impact your credit history for years to come, eg if you want a mortgage.

Divgirl2 · 15/04/2019 21:16

Why do you live on £600/month? What about your husband's income?

missedith01 · 15/04/2019 21:24

There's no way to avoid the interest without defaulting unless this is by agreement with the bank (not sure why they would agree). Some people who default and go through the debt management process end up with interest frozen because their creditors accept that they otherwise have no realistic prospect of clearing the debt, others via IVAs, etc, but any of that will damage your creditworthiness. Step Change have lots of good information.

Candleglow7475 · 15/04/2019 21:33

You could tell them you’re in financial difficulty and maybe they could reduce the interest? However this will affect your future credit rating. Ring them and ask them what the options and impact of taking the options are.

Original poster

1Rose19 · 16/04/2019 00:36

@div girl that my spending every month a meant .

And thank you everyone for replying i was confused i got an offer from Barclays. where you pay off loan within certain amount of time and no interest if am correct am not sure sorry if am wrong .
I got confused i thought if i do that i cn pay the 3k off quickly.
However reading the advice above i will try to pay quickly like pay 2k in one go then leave the 1k paying monthly.
I don't want to damage my credit history.

OP posts:

kosai1111 · 19/09/2019 17:02

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kosai1111 · 19/09/2019 17:03

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muller21711 · 20/09/2019 21:42

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Byebyebyebyebye · 20/09/2019 21:48

I once asked Barclays if they could offer any help on a credit card balance says I was abroad caring for a relative and they gave me interest free for three months. I know it’s not much but they might do similar to let you try to get on top of it?? No harm in asking?!

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