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Original poster

Urgent help needed please

57 replies

nutcracker · 27/10/2007 11:54

It's a really long story, but basically about 5 years ago I had a loan from Barclays who I also bank with, for £6000, I paid the monthly payments without fail for about 2 years until I started to struggle and the loan was redone with lower repayments.

When I split with xp last year, I couldn't afford the repayments anymore and Barclays were awful with me, eventually saying that my only option was to go onto temp payments of £40 a month for a year and then go back up to payments of £104 a month.

They have written to me today stating that from Dec my payments will go back up to £104. I have just rung them and they have said that it is non negotiable, I either pay £104 (for 118 months) or it goes to court. I explained my circumstances and they didnt give a toss.

They said that basically, when it gets to dec, they will take out £104 a month from my account wether it is in there or not, which will then mean I am overdrawn without authorisation, even tually they will sell the debt on, after they have got me into loads more debt and left me without money to feed my kids, and then they will close my account.

I said that surely it is within their interests to accept the £40 a month I am offering, rather than it go to court and me get told I can pay £2.50 a week, and they said no, we'd rather close the loan down.

What do I do now ??

I feel so ill.

OP posts:

CarGirl · 27/10/2007 22:42

student hardship fund at college?

Original poster

nutcracker · 27/10/2007 22:43

I'm not sure if there is a penalty for oaying off the loan early, but I would be surprised if there wasn't.
Tbh I really don't think I can get a loan elsewhere which will pay this off, as my credit rating is pretty bad.

OP posts:

CarGirl · 27/10/2007 22:47

declare yourself bankrupt?

Original poster

nutcracker · 27/10/2007 22:48

I did think of that, but i'm not sure wether it is the right way to go or not. I will ask CAB or the CCCS about it when I ring.

OP posts:

CarGirl · 27/10/2007 22:49

I would think about that or an IVA - or whatever they're called. Your credit rating will be awful for ever but unless you think that one day you will be buying a house not sure if that's really relevant?

singledadofthree · 27/10/2007 22:54

dont go bankrupt - is better to pay credit at higher interest, a new bank will take the barclays loan into account and lend you enough to clear it. you will pay a high rate tho. and you cant get IVA - you need to be 15 grand in debt usually for that. is as well to get a new loan elsewhere and spread it out.
is right about the 20 quid - and its not counted as income.

VeniVidiVickiQV · 27/10/2007 22:55

Nutty - you have two options really.

Go bankrupt - the debt is effectively written off, but obviously it does mean that you will have problems getting credit in future for things. However, you are a HA tenant, yes? So housing shouldnt be a problem for the forseeable. Also, you are a student so that should make things easier for you. It will make you unable to have a bank account for a while though I believe.

You could also contact an accountant and see if they would set up an IVA for you. I dont know how much they would charge for this, but basically, they would contact your creditors and attempt to sort out reasonable payments to them. This is normally done in advance of a bankruptcy.

I would strongly recommend closing your bank account with Barclays in any case and following up with Natwest.

Original poster

nutcracker · 27/10/2007 23:06

Thanks

Your right about the IVA, I don't owe enough and also you have to be in employment to be able to have one of those.

Bankruptcy is an option yep, but i'd really rather this be a last resort. I was so trying to repair my credit rating and was doing well until now.

I am definatly changing my bank account whatever happens.

I need to sit down and work some figures out, but all of my time is being taken up with the assignement at the mo.

OP posts:

fireflyfairy2 · 27/10/2007 23:08

What's an IVA?

singledadofthree · 27/10/2007 23:10

nutty - dont know how old your kids are - and i know youre looking for a proper job - but in the meantime persue the 20 quid a week. if thats toward paying debt off itll go a long way and wont be missed.
hope you sort it soon.

VeniVidiVickiQV · 27/10/2007 23:12

Individual Voluntary Arrangement.

Magdelanian · 27/10/2007 23:18

Go the CAB and sort it our from there. They will know how best to approach it. Good luck and dont worry its only money.

madamy · 27/10/2007 23:21

Have a look at this website

www.moneysavingexpert.com/loans/debt-help-plan

There's a great forum too, but unfortunately it's down at the moment.

Original poster

nutcracker · 27/10/2007 23:28

Thanks all, have bookmarked that site madamy and will have a read tommorow.

I am off to bed now as i'm knackered and have to get up earlyish to do some more on my assignment.

Thanks for all of the advice and I will keep you updated.

OP posts:

FatBellyJones · 28/10/2007 00:20

Open one of these accounts and get all your tax credits/benefits etc paid into it and then you can fight barclays without starving while doing it.

Hope that helps, even a little bit

WideWebWitch · 28/10/2007 03:50

It's not enough to risk bankruptcy or an IVA for imo.

I think you need to put it in writing, I think you'll get a better response that way.

If it goes to court they almost certainly will have to agree to £40 or whatever the court agrees you can afford so I'm surprised they're not accepting your offer tbh.

Definitely open another bank account and get all your income paid into that asap so that you can afford to feed the children etc rather than Barclays deciding their loan repayments take priority. And then write setting out your circumstances, i.e. income, outgoings and proposed repayment.

Freckle · 28/10/2007 07:17

Contact Payplan. They offer free financial advice and are often recommended by CAB to people in debt.

Is this loan your only debt? If not, speak to Payplan about all of your debts.

I would also write a letter to the manager of Barclays, setting out how rude and unprofessional their staff have been, making your offer and pointing out that taking you to court will not result in an order to pay more as not court would order you to pay what you don't have. Then if they do take you to court, you can produce a copy of this letter (do keep a copy!) and ask that any costs be awarded against Barclays as their action is an abuse of the court process.

LIZS · 28/10/2007 09:02

Nutty, is Dp paying anything towards the kids yet ? I know it is an old chestnut but he must have benefitted from this loan somewhere along the line and wasn't he getting a job . tbh I'd say any job which might help you out financially short term would be worth considering even if it is just cleaning or daytime babysitting. Would Wilkinsons take you back daytime/weekdays, having already worked for them you may get a better deal than they ostensibly offer, talk to manager direct perhaps. May not be a career choice but needs must.

LIZS · 28/10/2007 09:03

sorry Xp

Original poster

nutcracker · 28/10/2007 09:17

Morning all, slept like crap unsurprisingly.

LIZ - Xp is now working but csa isn't sorted yet as he only started last week. In the meantime though he is going to give me some money although we haven't worked out an exact figure yet.

Wilkos would have me back yeah but the prob is that they expect you to do shifts on a rota basis which I can't do, I need set days, same every week.
I have a few places that I am going to ring tommorow to enquite about jobs, 2 of them are hotels and I have worked in hotels before so at least I'd have experiance.

I do have another couple of debts yes but theses are very small compared to the loan and I manage the payments for these ok. 3 of them finnish around june/july next year which will help a great deal as it all mounts up.

Thanks for all of the links, going to have a look at those now and see whats what.

OP posts:

bling1 · 28/10/2007 09:33

Hi Nutcracker just seen this thread - not sure whether you can speak to a solicitor - a lot of them offer the first consultation free - to get some independent advice, they might write you a letter which will help with the bank but this could cost extra.

Bankruptcy is really a last option although usually your credit rating is bad for 3 years and after that you can start getting back on your feet (this is going on experiences from someone I knew a while ago)

Good luck - it will sort itself out, as everyone's said the bank will finally agree to get some money back rather than nothing at all, and chase up your xp!

bubblerock · 28/10/2007 09:36

I can second looking and asking for advice on moneysavingexpert - they are brilliant and will really try to help you, also read through other peoples dept problems on there, there are loads in the same situation as you unfortunately

CarGirl · 28/10/2007 09:38

Would xp have the kids on a Saturday - lots of Saturday jobes around on the run up to Christmas, at Woolies even the temp staff got staff discoun on certain days

I guess as the others say go to other banks and talk to them etc - I would still try Nationwide and ask them outright if they would take you on. All dealings with Barclays in writing recorded delivery - or take to the branch in person and get them to sign for it as a hand delivery.

bubblerock · 28/10/2007 09:45

I can't get on mse at the moment, but they have a new section on the forum for upping your income, I'll post a link if I ever get on the site.

LIZS · 28/10/2007 10:06

Do speak to someone at Wilkos, you may be able to do set hours as you are known to them already got to be worth a try and at least you know what is expected. Good news that XP is working at last.

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