# Credit union loan hell



## Elliesausage (21 Oct 2016)

hi all,

I took out a cu loan in 2007 (good times!!!) for €18k.
 22 years old at the time, loan guaranteed by my mother. 
Stupidly handed the €18k over to my boyfriend (of the time).

Loan was paid on time at the agreed rate for 12 months. Ex partner then ran into financial difficulty and loan was unpaid for 12 months. Negotiated with cu and paid a crippling €100 a week (ex was unemployed at this stage and I was then paying his mortgage and the cu loan). Renegotiated with cu to a rate of a more managable €30 per week and have paid this rate since. 

In 2013 I saw the light and left my ex. I know I was stupid in how I left him walk all over me financially. He now pays half the cu loan and has saddled me with the remainder. Spoke with a solicitor in 2013 who told me I didn't have a leg to stand on in relation to getting any of my money back from him. He's completely broke and I'd have spent money, which I didn't have in order to maybe get a judgement against him, which, let's face it wouldn't be worth a penny to me.

Anyways, it's 2016 and there's still €7000 approx owed to the cu. they've refused to offset the €2000 in shares against the loan. They refuse to freeze the interest, or reduce the interest on the loan.  They continually ask that I increase my repayments. I'd love to get rid of this loan and move on with my life... my ex is refusing to up his half of the repayments and as such I don't want to increase mine, I'd like all repayments to be 50/50 between us. 

Looking for any advice on how to proceed in order to clear this loan as fast as possible, have interest reduced, offset shares... etc etc.

-increasing repayments is not an option
-comments on my stupidity will not be appreciated. I understand I got myself into this mess and the reasons why.
-ex is an extremely difficult person to deal with, who to this date has not got back in his feet financially so any advice regarding getting him to contribute more will not work... believe me I've tried!!! 

Your insight, experience and advice is very much appreciated.


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## dub_nerd (21 Oct 2016)

What's the interest rate? At 8% your loan will be cleared in two and half years, a few months more if the rate is the max of 12%. The amount outstanding will be under €2,000 in two years or less. You could insist on writing it off against your shares at that point. However, if that means your ex stops contributing early you might want to say nothing about the €2k in shares even if it costs you €50 or so in extra interest to not pay it off early. It would mean you both have to keep paying for an extra 6 to 10 months but I presume the account is yours and you get the €2k at the end.

Apart from that it's hard to see what you can do but suck it up for the next couple of years. Sorry for your trouble -- we all did things we probably shouldn't have at 22.

EDIT: I was assuming that you and the ex were paying €30 _each_. If it's €30 weekly in total, and I see from the other thread that the rate is 9.6% then you are looking at 6 years to pay it off. Something under 5 years before the balance reduces to the €2k you have in shares.


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## Bronte (21 Oct 2016)

He's not all bad as he's willing to pay half the loan.  Seems fair actually.

Are you both now paying €15 each?

Basically you owe €5k. Is it possible to get that somewhere else more cheaply than the credit union.

Of course you'll pay it off more quickly and cheaply if you increase repayments.  I think you're being ridiculous on not upping your repayments as he refuse to increase his contribution.  Especially in light of the fact your mother is guarantor. That's cutting off your nose to spite your face if you don't mind my saying so. Also there's no guarantee he will continue paying.

I find it odd a repayment of €15 Euro is stopping you moving on with your life.


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## emeralds (21 Oct 2016)

Does your mother know about the issues with the Credit Union? Would she be in a position to maybe pay off your share and then you could pay her back?


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## no_moolah (21 Oct 2016)

I think dub_nerd is right - continue paying until it's all paid off and then take the 2k for yourself at the end. 

I had a friend in a similar situation with a CU debt and they told her they wouldn't offset the shares until it went legal (i.e at the time of issuing proceedings).


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## Brendan Burgess (21 Oct 2016)

Elliesausage said:


> Anyways, it's 2016 and there's still €7000 approx owed to the cu. they've refused to offset the €2000 in shares against the loan.



This is the only bit I would take issue with the Credit Union on.

There is an old thread here which might help

*How to set your Credit Union shares against your loan*

I am not sure the heading of your thread is fair. Your hell is not caused by your Credit Union. 

For those interested, the full background to the loan is told here. 
*CU Loan prob*


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