I have visited this site a few times and happy to have stumbled across it. I like reading the posts and questions people ask, and now I have a question of my own. I unfortunately took out a loan just before the lock downs to do some upgrades to my home. Then I was made redundant and was given some money as I had been with the company for about 6 years. I used this money to make the loan payments, and also to live off of along with my Universal Credit payments. I am now out of money, but still owe the loan. In total I owe about £2,000, and it is all just to the one bank. I am unsure what to do after next month as I will not be able to make the payment. I am looking for work, and jobs seem to be coming back, but I don’t know what to do, I only owe this loan, no other debts.
I understand your concerns, and as the loan is your only debt, have you spoke with the bank who gave you the loan? That is going to be your first port of call.
Contact the bank, advise them of your situation, you are looking for work, and have been paying them, but you can no longer continue to do so.
The bank may be able to offer a payment holiday, or you may be able to make token payments of £1 for a period of time.
These changes in payment terms can affect your credit, however, it is more important at the moment to deal with the payments and your finances, than worry about your credit.
Speak to the bank and get back to me as to their response.