# Cant pay back Credit union debt of €15,000. Will the follow me back to Poland?



## Tomm

Hi all,

I just missed my first payment on €15,000 euros loan which builded up during the last few years. I am on job seekers benefit and cannot afford to pay a loan back as its our only income in my family (wife and daughter).

I know this will sound mad, but we are thinking to pack our stuff and fly back to Poland as we cant pay it off. I am sure they will probably find me back home and ask to pay it off. The the situation is sad but as we wont be able to pay it off in any near future I would like to ask for advice if i can do anything to stop interest building up? because if we leave now after few years the loan will go up to like €25,000 or so.

We dont know what to do in situation like this.

Any advice would be great.


----------



## ClaireM

Why would you go back to Poland because of it? 

You can't pay. What are you afraid that they will do? If you have no property the worst they can do is get an installment order which takes into account your ability to pay.

Write to them, tell them you can't pay but will let them know if that changes.


When Debt Relief Notices become available you should be able to get one and have the debt written off.


----------



## Bronte

Firstly you need to talk to to the Credit union. They are normally quite easy people to deal with. I don't think anyone on the dole need have any fear of the CU taking you to court. Even if they did they know already it would be pointless as the court won't order instalment orders where people's incomes are so low.


----------



## Slim

+1. Also, if you do not make a payment for 52 weeks, the loan will be written off, you will still owe the balance plus 1 year's interest but the interest will stop accruing. In the meantime, contact MABs and the credit union. MABS will advise you. There is not much the CU can do if you're on jobseekers. I do not think they will bring you to court. Good luck.


----------



## Gerry Canning

Unlike Banks , if you talk to credit union ,you normally find them sensible. If you meet a (bully) take Slims advice.


----------



## itsallwrong

I've been in with the bank and the credit union.
I have found the credit union far more reasonable to deal with.
I'm in arrears with mine and I get a call from a little old lady every 3 months.
Complete opposite with the bank.
Depending on your credit union, at least approach them with your situation.
A saying said on this site a million times - you can't get blood from a stone.


----------



## Adrianno28

Slim; said:
			
		

> the loan will be written off, you will still owe the balance plus 1 year's interest



Hi I  was just wondering what you meant by the balance and one years interest here? Im not very good with finance! If the loan is written off, is it not written off and thats that?

Iv to meet them on Friday. Lost my job in August, repayments were €97 per week, now €35 but with the remainder coming for my shares since August. They now say that I have to repay the full €97 but will "look at it again" and see what happens because they cannot continue topping up the loan from the shares. Iv said regardless of what they look at I can only afford €35. She said then that it may get passed to a third party.I  still have about €3,000 in shares, which I will ask them to take off the loan (thanks for that!).So in the meeting anything you could suggest to help me and I know nothng about percentages, interest etc or finance!!  ? Up until August 2012 Id been paying back each week  with no problems for possibly 10 years or more. Loan is €15,000 --scared here


----------



## ClaireM

Adrianno, do you own a home? Some Credit Unions move very quickly to get a judgement mortgage against a house if you default on the loan. 

If you don't own property they can get a judgement against you but they can't do much to enforce it. Have they said what this third party will do?


----------



## pudds

Slim said:
			
		

> the loan will be written off, you will still owe the balance plus 1 year's interest ]


I think what Slim means is the CU will regard the loan as no longer 'active' on their books and therefore will not incur further interest charges. 

However the balance is still 'collectable' over time but bearing in mind the member's ability to pay at all times.


----------



## Slim

Yes, you have to not have paid for 52 weeks for them to write it off. Write off is simply an accounting provision but the interest stops accruing, so you still owe the repayments including interest for the 52 weeks. For tomorrow, broach the topic of setting the shares against the loan, reducing the repayment and tell them you are going to MABS (make appointment with MABS). A 'third party' is probably a firm of solicitors who may start writing to you. Keep the CU on side, communicate with them, ask them to consider freezing the interest for a period(they can). Good luck.


----------



## Adrianno28

No I do not own a home. I want to pay the loan , i dont wanna default on it because I borrowed it and its y responsibility.. I just want a little time to breathe. When I find work I will pay the €97  per week back no problem Thanks for the help


----------



## TrebleT

Hi Tomm, 

Don't fly back to Poland because of this, contact the credit union as most people have suggested they are really understanding when it comes to situations like this they would rather you pay €10.00 a week then pay nothing and leave the country as if you ever decided to come back to Ireland you would never get credit or a mortgage. I was out of work for 5 months and went down and spoke to the credit union and they added on 4 years to the term of my loan so its stretched to 7 years thus reducing the payments drastically, I am sure you have savings with them so you wont want to lose that.  Just call them it wont be as bad as you think.


----------

