# Rescheduling credit union loan - they want me to go into arrears first



## Murky18 (7 May 2018)

Hi
I have an up to date loan with my credit union. Never missed repayments. Giving my current circumstances i want to reduce repayments from 600e to 300e a month.  The credit union have agreed but want me to enter a temporary arrangement for 12 wks, where arrears will increase, they will then reschedule.  I have asked why they cant reschedule straight away and they advised its policy.  Can i push to skip the temporary arrangement and will my credit rating be affected?


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## Andrew Murphy (8 May 2018)

It really makes you wonder who formulates policy for these organisations. Complete eejits.
Do not go into volunteer arrears, it will come back to bite you in unexpected ways.

The best advice I can give you is to apply for a new loan from a different provider on the payment terms you require and settle the existing credit union debt. Before you do so, formally ask your credit union for a settlement figure i.e. get it in writing, and then apply for a new loan for that amount. The settlement figure should not total more than the current capital balance outstanding plus up to 2 months interest.


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## Brendan Burgess (8 May 2018)

Andrew Murphy said:


> The settlement figure should not total more than the current capital balance outstanding plus up to 2 months interest.



Hi Andrew

Where  are you getting this from?  Perhaps you could provide a link? 

Brendan


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## RecklessLender (8 May 2018)

I do not agree with Andrew about the settlement figure of the loan as CU loans are calculated on the basis of simply interest daily so no additional interest is charged when clearing a loan.

Also, if Murky was in a position to prepay the loan by €900 (use some of his shares if allowed) or if he is already prepaid by that much his loan would not go into arrears nor show up on ICB/CCR with the reduced payment for those 3 months and he could happily get his restructure at that point. However, the restructure is going to show up on ICB/CCR. Andrew's suggestion to go elsewhere may be the better solution for his credit rating in the long run.


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## Andrew Murphy (8 May 2018)

Hi Brendan and RecklessLender,

I was wrong in stating up to 2 months interest may be due as I have conflated UK early settlement regs with those in Ireland, so thanks for challenging. I will be a little more careful in future!


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## wysiwyg (13 May 2018)

The purpose of the three months temporary arrangement is to prove that you can make the payment for 3 months. It’s designed for borrowers who were not paying or who were paying intermittently 
As you have already proved you can pay this reduced amount there is no need for a further three month wait. You have done your 3 months already!
Your Icb and CCR will Show that you entered a reduced repayment arrangement but that’s all. Definitely don’t go into arrears


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