Bank loan for a small amount

[kateuk20]

Hiya everyone!

I've missed some credit card payments due to problems beyond my control, and now they want me to pay £300 to stop it going into administration (i think thats the right word!)

Also, i owe £136 on my phone bill and there is NO WAY i can afford to pay it all at once.

I was thinking of going to my bank and asking if they could give me a loan of £500 to pay off the outstanding amount.

I get a regular income of £130 a week, and i could afford to pay £60 a week to pay the loan off by direct debit.

Do you think the bank would be willing to help me out in this?

Any advice would be appreciated!!

Thanks
Kate
x

[Meryn]

Personal loans usually come in larger amounts than that, but you can ask if they'd be willing to give you an overdraft for that amount.

[RubberSkin]

Not really a good idea to borrow money to pay money back, especially the phone bill as you'll be paying interest to pay back an interest free payment.

You owe £436, you can pay back £60 a week, that's just over 7 weeks to clear your debts.

Why not phone up the phone company and ask if you can pay the debt off over say 5 weeks, that's £26 a week (ish) and ask your credit card company to freeze your account then come to some agreeable arrangement amount, say £30 a week then up it a bit when the phone bill is paid off.

[kangoo]

Agree with Rubberskin, often companies will allow you to pay off debts gradually so at least they know they're getting their money. Ring them up asap

[Mist]

Yep if you can afford to pay 60 a week towards a loan, then you can afford to pay 30 a week to each of your debts.

You may have issues getting a loan anyway if you've missed payments.

[g_angel]

Aye - speak to the credit card company, your phone company and if no joy, your bank for an overdraft.

Do NOT get a loan.

[kateuk20]

Thanks for the replies,

Have managed to get a bit more time to pay the debts, and am going to see the bank on wednesday about an overdraft... just in case!

Im absolutely useless with money (obviously!) so thanks for the advice

:-)

[Kermit]

Don't take out an overdraft if you can avoid it at all.

The credit card company will try and scare you into repaying it all quickly. "administration" simply means that someone in the credit card company will send you a letter and ring you to tell you that you owe them money and you need to pay it back.

If you honestly think you can repay £60 per week then you should divide this between the two creditors and repay them that way. A credit card company will do very little at this stage and they're unlikely to issue a default notice if you tell them what the problem is and that you can repay it at, say, £30 per week.

If the credit card company won't listen call Community Legal Advice on 0845 345 4345 and they can give you more advice on what to do.