# What if mortgage performing ok - but struggling with unsecured debt



## fobs (10 Sep 2013)

What happens if a person is managng to pay their mortgage each month but finding it hard to pay all unsecured debt? As the mortgage amount would be the largest creditor what would happen to the unsecured debt?


----------



## Brendan Burgess (10 Sep 2013)

Hi fobs

This is a very tough one. 

The Central Bank is running a pilot programme at the moment , a Framework for secured and unsecured debt. 

In most cases, the mortgage lender will hold back a bit to let the unsecured loans be discharged. But if the mortgage is unsustainable, the unsecured creditors get hung out to dry.  The Irish League of Credit Unions have absented themselves from the pilot programme in protest. 

If you want to do a case study format, you will get more a more comprehensive answer.


----------



## fobs (11 Sep 2013)

Sorry Brendan this was just a question wondering how it will be dealt with rather than having a real life example. All the case studies seem to be about people struggling with all their debt but I know of many people who are paying their mortgages and their car loans (as these are secured) but are struggling with credit card and credit union debt. 

As their mortgage would be the highest percentage of their debt and they are paying this ok why would the bank agree to be paid less to pay the unsecured debt unless this was also with the same bank?


----------



## fobs (4 Jun 2014)

Just resurrecting this old thread as wondering if there has been any developments on dealing with unsecured debt where the secured debt is being paid in full and there is positive equity?


----------

