natwest want me to take out a loan

[annoyedagain]

i took out a loan 3 years ago with the natwest for £15000 and was paying it off up until april his year when work dried up, since then i have scrapped through just about earning enough to survive but not enough to pay the loan

 

i was asked to call the bank regarding the situation and they said i need to close one of my accounts and bring the loan up to date

(i have 4 accounts 2 for business and 2 private, both he private ones have overdrafts of £1500 & £1000)

i offered to pay the original loan payment plus £80 extra to reduced the overdraft and missed payments but i was told i need to take out a loan to consolidate the 2

 

so they have sent me the loan agreement to sign but on reading it it has an apr of 7.5% above the bank rate and is variable, now im pretty sure one the election is over next year this is set to rise quite a bit and im going to end up paying a lot more

 

my instinct tells me not to take out the loan but the banks says if i dont they will withdraw my facility's therefore i would immediately be liable to pay £13000 + £1000 + £1500 plus im sure they would take the money from my business account which is there fore cashflow and taxes.

 

is there anything i can do or do i have to take the loan?

i feel they are pushing me into more debt when i can least afford it

 

i have already overrun my deadline to return the loan agreement so i need help fast

 

thanks

[peterlucas]

If your worried about them taking money from your business account, maybe you should set up an account with another bank and start paying money into there instead, then its safe (not RBS though, its the same group).

[the_freedom_trail]

my instinct tells me not to take out the loan but the banks says if i dont they will withdraw my facility's therefore i would immediately be liable to pay £13000 + £1000 + £1500 plus im sure they would take the money from my business account which is there fore cashflow and taxes.

 

Take the money out of the account, get a new account with a different bank and transfer payments in and payments out to new account. They cannot take any money if it is not there to take!

 

is there anything i can do or do i have to take the loan?

i feel they are pushing me into more debt when i can least afford it

 

Take control of the situation, you call the shots not them.

 

i have already overrun my deadline to return the loan agreement so i need help fast

 

You need to ask yourself, can you afford the loan, are you happy to pay the loan and take the risk of the variable interest - if the answer is no then you know what you have to do. Banks are bullies and bullies are not dealt with until we stand up to them I'm affraid!

 

My opinion would be to prohibit them from taking any of your money without your consent and the make an offer of repayment

 

thanks

 

TFT