# CU loan of   €5.2k  and shares of €3.8k . Can I use the shares to reduce the loan?



## friedcircuit (19 Feb 2013)

Can I have an answer to this in plain English without law quotes.

I have a Credit Union loan of about €5,200 and shares of about €3,800. 

Can I use some of those shares to bring down the loan and effectively pay it off quicker? 

Thanks I've read similar threads but the explanations have given me a headache just need a simple yes or no and a reason for and against. 

Thanks!


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## ladylu (20 Feb 2013)

simply put yes


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## Brendan Burgess (20 Feb 2013)

friedcircuit said:


> Can I have an answer to this in plain English without law quotes.
> 
> I have a Credit Union loan of about €5,200 and shares of about €3,800.
> 
> ...



Unfortunately, you are asking for a simple answer to a complex question. 

I have tried to answer it in as simple a manner as possible in this Key Post, but there are 83 replies. 

Maybe someone else can summarise my summary?


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## Crugers (20 Feb 2013)

friedcircuit said:


> Can I have an answer to this in plain English without law quotes.
> 
> I have a Credit Union loan of about €5,200 and shares of about €3,800.
> 
> ...


If you want a simple yes or no then you are asking the wrong people.
Ask at your credit union and you will get a simple yes or no.
If you get a "no" then come back here and you will get more advice.

Bottom line is that the credit union can allow you to offset your shares but you can't unilaterally decide to do it!
HTH


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## Time (20 Feb 2013)

Many CUs won't allow it.


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## bungaro (11 May 2013)

i know my credit union need you to maintain 25% of the value of your loan in savings/shares so if this is the same with yours then you'd need to keep €1300 in shares so you could pay €2500 off it. give them a ring and see if they do something like this


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## elle7 (4 Aug 2013)

My CU doesn't allow this. I work hard to get to a stage where they are level with one another, then get a loan from family, put it in and then take the shares out and pay them back...My CU won't even let you call it even when the loan is equal to the shares! Very silly if you ask me.


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## orourkeda (10 Sep 2013)

I was recenty made unemployed.

I had a loan which was greater than my savings. I was told that I could only use the savings to clear the loan once the savings amount exceeded the amount of the loan.

I'm not sure if this is the position that all credit unions take.


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## Slim (10 Sep 2013)

orourkeda said:


> I was recenty made unemployed.
> 
> I had a loan which was greater than my savings. I was told that I could only use the savings to clear the loan once the savings amount exceeded the amount of the loan.
> 
> I'm not sure if this is the position that all credit unions take.


 
Sorry to hear you have been made unemployed. The credit union will not let you reduce your savings below 25% of what you owe. If they resist the recuction to 25%, you need to write to the board of the credit union and try to insist.


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