# Credit Union Mortgage



## MsQ (18 May 2013)

Advice sought please because I cant find any info out there on mortgaged CU loans in arrears or advice for people the wrong side of 55.

Our CU loan (for a start up business a few years ago) is secured by land on which our small family business is located.
Its over 100k and for the last two years payments have been halved, but now it isnt clearing the debt by more than a few thousand per year.
biggest worry is at the 8.5% rate of interest charged doubt we'll have it paid back before retirement. cant sell the land as our business isnt one that can relocate.
The business is our only source of income, and its just surviving, but the loan is personal and the rate seems to be the same as if it were a 'normal' size unsecured loan. 

if we ask the CU to look at reducing or freezing  the interest rate on such a big debt are they likely to help? 
 As the CU loan is secured, its equally worrying as paying the mortgage on our house. in fact more so, because if they repossess we'd have no income to pay the house mortgage either. At our age getting another job in rural ireland is unlikely.
 We dont have a pension plan and will only get a basic state pension so it has to be paid before then. 

we also have credit card debt of 20k at even worse interest. we dont know who to pay first in this situation.
Has anyone any advice? Should we default on the credit cards to pay more to the CU?
like so many other posters, I cant sleep anymore for worrying about this.


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## RichInSpirit (18 May 2013)

I asked for zero interest on a large CU debt and eventually got it.
You may be helping them out by being on zero interest because your loan is getting paid back much quicker. Improving their books much quicker.
Maybe write them a letter pointing that out.


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## MsQ (19 May 2013)

Thanks for your reply. Can I ask, was your CU loan mortgaged?


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## RichInSpirit (19 May 2013)

No it was just unsecured debt that had built up over years, (of being able to borrow to support unprofitable activities). 

I wasn't even servicing all the interest on mine in the end, and I had to do something.
I'm now paying a (relatively)  small amount on it weekly, and I can see the debt reducing.

And everybody seems reasonably happy.


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## Brendan Burgess (20 May 2013)

Hi Ms Q

To get meaningful commentary, you should complete the Standard Format for people in arrears. 

http://www.askaboutmoney.com/showthread.php?t=170704

Brendan


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