Tesco Loan can't afford what should I do

[morris83]

Hi all I'm new to the forum and think it's great. I do need a bit of advice though.
I took a Tesco Loan in October 2014 for 15000 to pay some debts from a divorce. My monthly repayments are 313 a month for 60 months. I am unfortunately being made redundant and haven't found another job. My credit file took a small hit as I had two months of an arrangement to clear an overdraft which I did. However my score is only about 600.
What should I do should I not pay and wait for default? . Should I try and offer token payments? I don't have a mortgage or any assets I'm in rental furnished accommodation. Unsure what's best just wondering what you guys think

Many thanks

[PlanB]

Re: Tesco Loan can't afford what should I do

I took a Tesco Loan in October 2014 for 15000 to pay some debts from a divorce.

Hello Morris and to AAD

The first thing I'm picking up on is this debt seems to be as a result of divorce proceedings.

Was there a court Order which required you to pay your ex a lump sum or maybe you were made responsible for joint liabilities and the only way you could do that was to take out a loan? Perhaps this loan was partly incurred to pay for legal costs?

Give us a little more background information and we'll take it from there.

Plan B x

[morris83]

Re: Tesco Loan can't afford what should I do

Hi plan b

It was taken out to clear legal costs and debts incurred through divorce and from an old loan which was mine. I just pooled it all together to reduce my outgoings. Some of the loan was for a joint loan. There was no court order as the ex paid hers off and I did with the loan. Therefore the divorce was finalised in 2013.

Hope that helps thank you

[Pixie]

Re: Tesco Loan can't afford what should I do

What should I do should I not pay and wait for default? . Should I try and offer token payments? I don't have a mortgage or any assets I'm in rental furnished accommodation. Unsure what's best just wondering what you guys think

Many thanks

I wouldn't just stop paying at the moment. Could you write to them explaining that you're about to be made redundant (will you get any redundancy payment?) and ask for a payment holiday for a couple of months. Hopefully, you'll be able to find a job within that time

[CleverClogs (RIP)]

Re: Tesco Loan can't afford what should I do

I wouldn't just stop paying at the moment. Could you write to them explaining that you're about to be made redundant (will you get any redundancy payment?) and ask for a payment holiday for a couple of months. Hopefully, you'll be able to find a job within that time

Indeed. Above all...

Don't panic!

[morris83]

Re: Tesco Loan can't afford what should I do

Thanks all. I was thinking of writing to them. The problem is I will struggle to find employment that pays the same as my job does now and I won't get any pay off either 😦. Therfore I won't meet the 313 a month payments doubt i could even make half the payment ! So like I said just unsure what's best. Thanks all

[Pixie]

Re: Tesco Loan can't afford what should I do

Very good advice Cloggy

[Pixie]

Re: Tesco Loan can't afford what should I do

There's no harm in writing to them. If they won't accept a payment holiday then maybe they'll accept token payments. Unfortunately, whatever you do it will affect your credit rating

[morris83]

Re: Tesco Loan can't afford what should I do

Thanks pixie I know whatever I do my file will be shot. Shame cause I have always borrowed sensibly with a good rating for over 20 years seems a shame but it can't be helped. If i pay token payments I just feel that it could just be delaying the invetiable then I'm concerned if I don't pay I will get baliffs etc 😦

[Pixie]

Re: Tesco Loan can't afford what should I do

Thanks pixie I know whatever I do my file will be shot. Shame cause I have always borrowed sensibly with a good rating for over 20 years seems a shame but it can't be helped. If i pay token payments I just feel that it could just be delaying the invetiable then I'm concerned if I don't pay I will get baliffs etc 

You're under a very common misapprehension morris. Bailiffs are only appointed by a court and will only be used to collect Consumer Credit Act related debts (as your loan is) if the creditor has already taken you to court to obtain a ccj AND you haven't complied with the ccj. The creditor can't (or shouldn't) take you to court while you're making any sort of payment.

Creditors can use debt collecting agencies (DCAs) to help them collect the debt and they may (but usually don't whatever they threaten) send a debt collector to your home. They cannot enter your home and seize goods. They have no rights and if you ask/tell them to leave then they should.

You're like a lot of us (if not most of us) here who have previously had very good credit ratings for many years. It only takes one "event", such as illness, accident, job loss or relationship breakup, to put you in a position where you can't afford to make the repayments.

One last point, don't phone the creditor - everything in writing!

[morris83]

Re: Tesco Loan can't afford what should I do

Oh okay you here all sort of things like cars being taken property seized etc. I presume they can't do that unless a court orders it.? I would put everything in writing. If they don't take my token payments and default me where do I stand then apart from my credit rating. Will i then get dca's ringing writing etc. Thank you

[CleverClogs (RIP)]

Re: Tesco Loan can't afford what should I do

Thanks all. I was thinking of writing to them. The problem is I will struggle to find employment that pays the same as my job does now and I won't get any pay off either ��. Therfore I won't meet the 313 a month payments doubt i could even make half the payment ! So like I said just unsure what's best. Thanks all

This isn't a proposition - but have you ever considered gay escorting?

Thanks pixie I know whatever I do my file will be shot. Shame cause I have always borrowed sensibly with a good rating for over 20 years seems a shame but it can't be helped. If i pay token payments I just feel that it could just be delaying the inevitable then I'm concerned if I don't pay I will get baliffs etc ��

No - nor will you get the pox from sitting on a loo seat, or catch the dreaded chin cough from sitting on a garden wall.

No lawful lender would even dream of seeking enforcement of a debt without first obtaining a Court Judgement in their favour.

[CleverClogs (RIP)]

Re: Tesco Loan can't afford what should I do

Oh okay you here all sort of things like cars being taken property seized etc. I presume they can't do that unless a court orders it.?

Generally, yes.

If they don't take my token payments and default me where do I stand then

At the bus stop, if your motor car breaks down.

Will i then get dca's ringing writing etc. Thank you

Yes, but so what?

If they become a nuisance, you may tell them to cease and desist, putting any further communications in writing only; if they do not comply with that request, it may become the basis for a complaint of harassment.

Door step collectors are not allowed to remove your door step, irrespective of how collectable it might be.

[morris83]

Re: Tesco Loan can't afford what should I do

Can't say I have ever thought of gay escorting 😁 not sure how I could explain that to the Mrs lol 😂. Okay that's good to know. I presume if they get a court order to enforce the debt they can seize assets? What are the chances on a 14000 debt especially as I own a 600 quid car 😊

[CleverClogs (RIP)]

Re: Tesco Loan can't afford what should I do

As a 600 quid car would not even fetch enough to pay for the costs of enforcement - £520 these days, thanks to that turd Cameron - any attempt to take your motor car would be improper and/or unlawful.