Credit Union Loan and Guarantor

N

Neady80

Guest
Hi hopefully someone can give me some advise.

Approximately 3 years ago I took out a Credit Union Loan of €25,000 euro with my father as guarantor. At the time I was in a well paid job earning in excess of €35,000 a year also at the time I had no other loans or responsibilities so of course it wasn't a problem then. However I lost my job this time last year and I have not been able to find one since. When I first lost my job I contacted the Credit Union and told them of my situation and asked them to review my loan. They agreed to reduce the payment on a 3 month basis and see were I go from there.

Of course now this has been going on a year and resently they call me in and told me that I had until July with the reduced repayment and then it will go back up to the full amount and that would be that. I have been frantic trying to get a job but of course nothing is coming my way, I am now worried that if I don't have a job earning sufficient money to afford to pay this loan and my other commitments it will fall to my father, which of course I don't want.

I have asked them to redo the loan over a longer period which would bring down the repayments and everyone will be happy but they said no as the finanical regulator would not allow that.

Has anyone any advise, as I have no idea what am going to do if I don't have a job by July.
 
...with my father as guarantor...
Guarantor means 'what it says on the tin'... If you don't/can't pay the CU have the option to pursue the guarantor.
...asked them to redo the loan over a longer period...but they said no as the finanical regulator would not allow that...
Legislation does restrict the values of total loans CU can have over various repayment periods but if you have repaid for three years then there should be some leeway (maybe not enough to suit your current situation) in extending the repayments.
Approach the CU again but also contact MABS (if only to get on the appointment list!) because you might benefit from their advocacy services on your behalf. HTH
 
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