Advice please

[nutcracker]

I have a Barclays resolve loan for £6000 and pay £104 a month over 9 years (yep rip off i know but i had no choice).

Anyway, due to my change in circumstances I have asked if they would renegotiate the repayments to £70 a month and they said no, even temporarily.

They reckon I can afford it, and yes when you write down my incom and expenditure it does look like I can, but then what do I do for unexpected financial things like when the cooker blows up or, kids birthdays and xmas, anything basically.

I do want to pay it, but they aren't prepared to budge an inch and i'm not sure what to do next.

At the moment the dd is cancelled. If i don't oay what will happen ??

My friend reckons I should apply for bankruptcy as I have other debts too.

I don't know, i feel so shite.

anyone ??

If you don't pay they have to issue you with a CCA default notice, which should give you 14 days to pay. If that not met will issue FINAL DEMAND, demanding whole repayment of entire loan in 28 days or your proposals.

Is a resolve loan a debt consolidation? If so they will not normally budge on repayments as they would have been negotiated to repay other Barclays debts?

If you miss the payment but talk to them straight after saying can only afford £x, might work, but they might just place the whole lot with their debt collection dept which screws up your credit rating.

Is your current account with them? If so, if DD cancelled & the money is in your account they can just take it - beware!

Hope you get some help soon.

Oh great, my account is a barclay yes, so they could just take what they like ??

I have already missed one payment because i rang and explained that my cirumstance had changed and that at that time i had no income at all (was waiting for benefits to sort things out) and they said fine ring us back when you can make an offer of payment, so thats what i've done and now they don't want to know.

I work for (another) bank, and yes, if you try & cancel a payment (Standing order etc) to one of our loans, we phone you up to say can't do that - loan Terms & conditions etc. We WILL move payment date or occassionally miss one payment, but never cancel it.

The Bank will have a right of set-off over any accounts in the same name - which is why Barclaycard can debit your Barclays account if you don't pay etc.

Your loan will be covered by the CCA. Is it a Fixed rate? If so the payments cannot be altered. A new loan would be required to replace this one if changes made. If it is variable rate you have more chance - but only if you say for X months then revert etc. They will have a minimum % of the loan amount required each month.

Most Banks have a debt helpline? Can you talk your options through with them?

The original loan was a Barclay loan fixed rate etc. Then i got behind and had the barclays resolve loan which cleared overdraft etc. As far as I know it is fixed rate.

When i first rang to advise them of my difficulties they told me to cancel the standing order which i did and to ring them back when i had a clearer picture of my income and expenditure which I did today. Thye originally said they would see what they could do but today were really arsey and said they can't do anything.

I don't have any other number except for them.

Must add i actually went into Barclays and cancelled the standing order and they never said a word.

Go to CAB or an advisory service asap . It may have more clout if someone negotiates on your behalf. But don't not pay it if there are funds in the account as you would be in default and get into a poor credit situation. You may have cancelled the payment there but the cashier isn't to know that you haven't set up an alternative dd from an account elsewhere.

At less than 2% of the debt per month, they are probably at the limit of what they allow. Can you really not keep it going?

I only ask because if it goes to Debt collection your current account will be closed and it will be almost impossible to open anything other than a basic bank account anywhere else. The bad debt will be recorded on Credit files for 6 years. The only upside is that all interest is usually frozen at that point (but as I don't work for Barclays cannot vouch for that - be very careful).

They will want to know what has changed from when the loan was agreed, otherwise how do they know a new agreement would be kept to.

Sorry I'm not being more positive, but I would try & stick with it as it seems you are on their "final chance" type loan.

Thye know what has changed, I have told them. I am now a single mum if 3 , before i was a part time worker with a partner that worked full time.

They won't be able to take the payment from my account anyway as there is never enough money in it.

I already have a bad credit record too.

:(

Hope someone can come up with a positive solution for you.

Thanks for the advcie Millways and Liz, appreciate it.

Am going to sit and do all my figures again later.

Without being rude the bloke I was speaking to had trouble understanding me, and I him and nearly every figure I gave him had to be repeated 3 or 4 times so he may of made a mistake somewhere along the line.

I have rung them back again this morning and they have agreed to reduce payments to £70 a month for 2 mths and if i stick to that they will re do the resolve loan. God knows how long it will be over, i'll probably be dead before it's paid off but anyway it will help me right now.

Thanks again for the advice.