# Credit union loan w/guarantor - options?



## kkelly77 (3 Jun 2013)

I would really like some advice on a credit union loan I have outstanding.

When I initially took out the loan with the CU, they required a guarantor. A friend of mine obliged and, in hindsight, I really wish they hadn't and it is my fault for asking. Having been made redundant in 2009 and only a limited amount of work since then, I believe I may start having difficulty with the CU loan repayments. I have currently been unable to find work since Sept 2012.

I notified the CU when I was first made redundant and adjusted my repayments to the minimum amount possible, which I have paid consistently every week and still am. However, it has reached a point where I may start to struggle to make the required payments. 

Considering I am currently paying the minimum amount set by the CU, what other options do I have? Current loan balance is about €14k.

I would like to keep my friend from having the CU looking to them for  money, even though I understand completely this is the role of a  guarantor if the loan cannot be repaid. I would like to prepare for the worst and hope for the best. Thanks for your help.


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## Brendan Burgess (3 Jun 2013)

Your guarantor probably knows about your difficult financial position so why not raise it with him anyway? 

Has he a good reputation with the CU himself? 

They might not hassle you too much if they trust him. 

Brendan


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## kkelly77 (3 Jun 2013)

Brendan Burgess said:


> Your guarantor probably knows about your difficult financial position so why not raise it with him anyway?
> 
> Has he a good reputation with the CU himself?
> 
> ...



Hi Brendan,

I haven't mentioned it to him yet as he, like most people, are struggling with their own finances.

He is not a member of my CU or any other CU AFAIK.

When he signed as my guarantor, my CU only required the guarantor to be a 'homeowner' to be eligible, which he is.


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## emeralds (3 Jun 2013)

I think you need to tell him before the CU start writing to him...does he have any idea that his guarantee for your loan may be called in?


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## kkelly77 (3 Jun 2013)

emeralds said:


> I think you need to tell him before the CU start writing to him...does he have any idea that his guarantee for your loan may be called in?



No payment has been missed so there is no reason for the CU to make contact yet.

My query is concerning what options are available to me or if someone could offer some advice how to deal with the CU about this.


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## Bronte (4 Jun 2013)

As a first step you need to have a meeting with the credit union to see what your options are. They are normally great to talk to so it's time to sort it.  

You say the guarantor is stuggling financially, but would he be able to repay the 14K? Ultimately if you cannot pay he is liable, if you're close to defaulting I think you need to tell your friend what is happening so he can prepare for the worst. Do you have any assets? 

You haven't given us much information about the loan, nor your income and outgoings etc.


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## kkelly77 (4 Jun 2013)

Bronte said:


> As a first step you need to have a meeting with the credit union to see what your options are. They are normally great to talk to so it's time to sort it.
> 
> You say the guarantor is struggling financially, but would he be able to repay the 14K? Ultimately if you cannot pay he is liable, if you're close to defaulting I think you need to tell your friend what is happening so he can prepare for the worst. Do you have any assets?
> 
> You haven't given us much information about the loan, nor your income and outgoings etc.



Thanks Bronte. You're right about meeting the CU. I've always found them very easy to deal with in the past. 

I will update my friend on the loan situation prior to getting to a point I cannot afford the repayments. But I will being doing whatever is necessary to make sure I keep up the repayments.

*Other financial information:*
CU loan -  balance is about €14k. Paying €45/week. 

Mortgage(€235k) - balance of €229k, with monthly mortgage of €1052/month. Arrears of about €11k. Property is now worth €97k. I have moved out of the house and rented it out via an estate agent for €725pm. Agent's fee is 10%.

I am on JSB of €188 and have recently had to apply for JSA. Awaiting decision from the SW on that application. I have no dependants.


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