# Credit Union How To Restructure My Loan



## advice needed (22 Feb 2016)

I have had a credit union loan from 2003 it was for €30,000 at repayments of €145 per week very quickly I realised that I was not in a position to pay this amount as I was a 22 year old one parent family. I spoke to my local credit union and made a informal agreement that I would pay €320 per month but they would not restructure my loan. I have let this go on now for 12 years and recently I contacted them asking again to have my loan restructured and if they could issue me with a statement of all monies paid on this loan. A member of the credit control department rang me to confirm that they do not restructure any loan and if I wanted the balance to reduce I needed to pay more per month, but that they would allow the informal arrangement to remain in place. To date I have paid €40278 of this loan and still have a remaining balance of €17585.93. I would appreciate any advice on how I best can go forward


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## Bronte (23 Feb 2016)

What is it you want the credit union to do for you?  Is the 320€ per month only the interest,  if it is then you are not paying any capital and this will go on forever.  Has your financial situation improved. If not and it's only interest you can pay then the only way to get them to sit up and do something about restructuring is for you to stop paying and then they will send you a letter, there is something very wrong about a 4 year original loan turning into 12 years plus and you still owe nearly 2/3 of the original loan.


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## Gerry Canning (23 Feb 2016)

I think I  have a serious problem with this .

It looks like  (advice) was given K30 without checking ability to repay? ( I could well be wrong)
After 12 years (advice) should press for closure.

Can I suggest (advice) ask Union to stop adding interest so that the 320 or whatever is agreed(assuming it is affordable)reduces amount owed each month.
If (advice) posts more info  of income etc , posters will help.
It is not in Unions or Advices interest to have this continue.


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## advice needed (23 Feb 2016)

My income is Net 27,000 My mortgage is 450 per month creche 300 per month car loan 311 per month along with all the other living costs I am married but I don't include my husbands as our monies are separate and all figures are my half of the bills. I am part time employed and part time self employed and have to pay 350 per month to the Revenue. 
I have stopped payments before and a guy called out to the house when I explained to him, he told me to pop in and speak to someone when I did this I again was informed that I have to continue as it was at the 320 per month minimum. I find the credit control department very difficult to deal with.
I dont want to take another loan to clear this loan and I feel that I am just going around in a circlue.
I can't afford to stop paying as I'm afraid of it affecting my credit history and my daughter is going to college this year and I may need to borrow again.


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## Gerry Canning (23 Feb 2016)

Advice.

From your figures it looks like you must sit down with Cu and agree repayments, you have income so you have to pay.
DO NOT try to take out another loan ,that would, as you, I think agree  be stupid.
Do an online Credit Check on yourself under Irish Credit Bureau ( ICB)
I expect your ICB is poor ,in that your credit history will show non-payment as per loan conditions.
If so ,no -lender will give you funds.

You most definitely do not need to borrow again , maybe accept you have nuff out ,so sort that first , Sorry if advice seems harsh, but please don,t dig more holes.


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## Slim (23 Feb 2016)

Hi Adviceneeded. Its seems you were granted a large loan in the 'good times' and that proved to be unsustainable even before the 'crash. It seems you have paid off €13k of the amount borrowed, so you are not on interest only. You say you are not including your husband's income but it is not clear if the expenses you state are all 'half'. It is also not realistic to exclude your husband's income for the purpose of working out a solution. Leaving that aside, how much do you have in shares in the CU as security against the loan? Could you ask them to set those shares off against the balance and work out a revised payment schedule? The CU would only stop interest in direst of circumstances or if you stop paying for 53 weeks. If you stopped paying, it would take a year or two before court proceedings would be instituted and then perhaps a judgement on your property or a repayment plan. Your CU is probably not on ICB, for your loan anyway, so it may not affect your credit until it reaches court.


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## advice needed (23 Feb 2016)

Hi, my shares are 2110 so not enough to make any kind of a difference. I have been able to obtain a car loan from my bank so that hasn't been an issue. I find the 320 affordable to me it's just I wouldn't be in a position to increase it and when the credit union emailed me to say that I need to pay for another 76 months, I was wondering if I could get around paying so much interest. I don't want to stop paying just to maybe have it restructured but they have informed me that this is not an option. By the time I have this paid I will have paid back 100% interest, which is just crazy if I had of borrowed from a non reputable company I would have paid 30%.


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## Bronte (23 Feb 2016)

advice needed said:


> . By the time I have this paid I will have paid back 100% interest, which is just crazy if I had of borrowed from a non reputable company I would have paid 30%.



This is not actually correct, what happened is you borrowed too much initially as you quickly found you could not pay for the monthly repayments which were €628 based on what you've posted.  I'm amazed you ever could have afforded that at 22 with a child.  I'm also amazed they didn't look for a guarantor.  What did you need the money for?  Was it to start your own business.

The only way around the interest is if a family member can help you, your partner perhaps?  You pay off the loan and then pay him back 320 a month for 54 months.  Four and a half years instead of six years.

How much is the part time job paying you and how much is your business making out of the net income of 27K?

Is the amount to revenue VAT, so not a cost out of your income.  Your outgoings are 1381 (without revenue) and your income is 2250.  Leaves you with 869 for everything else.

What is the interest rate on your CU loan.

You've stated your income is separate to your husbands and seem to be tackling this debt all on your own, even if it was incurred before you met, two incomes are better than one, especially if one has a much larger income, and most especially where there are children.


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## Monbretia (23 Feb 2016)

What exactly do you mean when you say you want it 'restructured', what is your definition of what that will entail?


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## newirishman (23 Feb 2016)

advice needed said:


> Hi, my shares are 2110 so not enough to make any kind of a difference. I have been able to obtain a car loan from my bank so that hasn't been an issue. I find the 320 affordable to me it's just I wouldn't be in a position to increase it and when the credit union emailed me to say that I need to pay for another 76 months, I was wondering if I could get around paying so much interest. I don't want to stop paying just to maybe have it restructured but they have informed me that this is not an option. By the time I have this paid I will have paid back 100% interest, which is just crazy if I had of borrowed from a non reputable company I would have paid 30%.



Your calculations not accurate. You are not paying 100% interest. 
You took out the loan in 2003, so it has now been running for approx 12 years or 144 months, another 76 month means 220 months ar about 18 and a bit years. Your 100% divided by 18 years is about 5.5%, which is not bad for a personal loan.

What interest rate is that loan on? What is the overall agreed payback period? 
What exactly do you want restructured?


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## advice needed (23 Feb 2016)

_I want to pay off the capital without increasing my payments but from what I have red this is not plausable, so from what I can see I have two options
1. Pay of the loan in one lump sum
2. Up my monthly payments
The APR on the loan is 10.91%
I'm not that educated on this kind of thing but I do know I have paid back my loan money plus 10,000 and still owe 17,500 and it seems unfair to me as the credit union is a not for profit organisation._


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## vandriver (23 Feb 2016)

newirishman said:


> Your calculations not accurate. You are not paying 100% interest.
> You took out the loan in 2003, so it has now been running for approx 12 years or 144 months, another 76 month means 220 months ar about 18 and a bit years. Your 100% divided by 18 years is about 5.5%, which is not bad for a personal loan.
> 
> What interest rate is that loan on? What is the overall agreed payback period?
> What exactly do you want restructured?


The _average_ amount borrowed is half the total,so the interest is double ie about 11%


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## wysiwyg (24 Feb 2016)

In any situation where you can't pay your loan, you need to meet with your CU & bring in your list of outgoings and details of your income. Its a matter of convincing the CU of your circumstances. If you can't pay (as opposed to won't pay), then either your loan will need to be rescheduled over a longer period at a reduced repayment per month,  or if thats is beyond acceptable, them the interest may be stopped & your shares lodged to your loan to reduce the balance & repay the rest in a reasonable time. If you are paying regularly, this may be an agreeable solution given the 12 years that have elapsed. 

No point in begrudging the interest paid as you signed up for the loan, and a loan will always have interest. The trick now it to ease the financial burden on you and also for the CU to be repaid. There are a number of solutions in that package and it needs to be a win win. You might get the same advice from MABS if you approach them


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## Bronte (24 Feb 2016)

That's a good idea wysiwgy for her to go to Mabs.  One thing on dealing with the CU, telling them her partner's finances are not relevant may not wash.


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