Will I be able to do anything about bank loans?

[beenaroundtheblox]

I have (stupidly) ended up with around £25000 in bank loans with a large monthly repayment. This was affordable but recently things have changed and it is too much of a struggle on my new wage. Does anyone know if I can change these or have a payment break or anything? I'm with nationwide? Thanks.

Speak to stepchange, they can help you negotiate repayments. Unlikely you would be able to stop altogether but you may be able to freeze interest.

Contact them in writing, list your income and all expenses and explain your situation and ask them to consider reducing the loan repayments. They prefer this to missed payments or giving you a payment break, but definitely get in touch with the bank now.

If its all in one place, speak to them as the first port of call

If its with various lenders, step change are great. But this appears to be one so I would start there. A payment break just kicks the problem down the road. You need an affordable repayment plan.

They might let you change the term, but it's likely that it will be considered an agreement to pay and this will affect your credit rating.

They'll also take issue with your reduced income as this affects affordabilty.

Firstly you need to have a really good review of your income and expenses to see if there is any way you can increase your income or cut costs to make the loans more affordable.

If you have a lot of discretionary spending like Sky TV, eating out, coffees etc, it might be possible to cut these down to free up money to pay for the loans.

However, if you are now struggling to pay the basics (not forgetting that food and utilities are increasing in price) then you might need more formal help and to accept the hit in your credit rating, otherwise you face years of struggle and may default anyway.

Start by reviewing your budget and look at the signposted help along the way:

www.moneysavingexpert.com/family/money-help/