Hi,
I have got myself (like so many people) into an unfortunate financial mess and I am looking for advice.
Basically, I have the usual loans (from banks), overdrafts, and credit card debts. The biggest are the bank loans (about £17,000) to actually pay back. The credit cards and overdrafts are far more manageable.
Since I just about break-even without paying interest on these loans - would it be viable to write to the two banks where I have the loans and say something like:
"I have every intention of paying off these loans, but the amount of repayments each month is unmanagable."
And then suggest a set amount each month e.g. £50 rather than say £230 in one case. I can see that this appears responsible and banks must get this type of thing all the time - and in increasing amounts as the level of debts increases, especially amongst the young. Ultimately, I will pay off the loans and maybe even so so over the agreed time period; I just need to reduce the interest payments now.
Does this seem viable; how would High Street banks (NatWest and Cahoot) react to such a request?
Would this harm my credit reports which at the moment are good (never defaulted on any debt; always made minimum payments, etc).
Thanks, Richard.