Debt issues, how to approach discussions with bank

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finty

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I went back to college 4 years ago do a degree. Funding it was dependent on some saving and a bank loan. At the time the bank was generous as the pay for people in my profession was very good back then.

4 years on and times have changed drastically. Pay has halved and will fall further and I now find myself in the following situation.

unsecured personal loan of: 108,000e
joint mortgage: 360,000
apartment current value: 250,000

savings : 0
investments: 0

I've recently started work at a basic salary of 30,000e which is suplemented by some overtime. take home ranges up to about 3k/month

The apartment myself and a friend bought is rented but is needing a contribution of 200e/month from each of us to meet mortgage and other costs. Mortgage is up to date.

I've moved in with my partner into her apartment so am paying rent there of 500e/month.

My bank now are looking for their 108k back over a max of 10yrs. Rate is about 5% at the moment. They are willing to go interest only for 3yrs but still want full payment in 10yrs.

Any advise on how to approach dealing with the bank? Dont fancy living on beans for the next 10yrs
 
I would advise you to get in contact with a PIP to evaluate your options under the new insolvency act.
 
3 years interest free and 7 years at 5% on €108,000 equates to just over 1k a month.Add in your 200 contribution to the apartment mortgage,and your 500 rent,leaves up to 1300 a month.It's hardly breadline now is it.
 
Leaving paid employment to go to college for four years whilst you had a mortgage was a crazy idea. I think you will have to take responsiblity for this and get used to living on beans. Although I hope you can manage your budget to eat better.
 
vandriver said:
3 years interest free and 7 years at 5% on €108,000 equates to just over 1k a month.Add in your 200 contribution to the apartment mortgage,and your 500 rent,leaves up to 1300 a month.It's hardly breadline now is it.
Click to expand...

Poster said interest only not interest free. The poster is in a difficult financial situation.
 
TommyB said:
Leaving paid employment to go to college for four years whilst you had a mortgage was a crazy idea. I think you will have to take responsiblity for this and get used to living on beans. Although I hope you can manage your budget to eat better.
Click to expand...

There is nothing wrong with trying to better oneself through further education, whether full or part time. There is nothing in the OP to say they gave up work, they may have lost their job like many other people.

I don't think your post is at all helpful. Why be so hard on people?
 
Well said Lutternau. My understanding is that AAM is about sharing knowledge and helping ppl not judging ppl without giving them any advice
 
finty, what are the repayments due to be at the 5% rate, is it 1k like van driver says? (I would have thought would be a big higher?)

If it is 1k, then I would forget the interest only period, start paying it off right away at 5% that's a good rate and seems you can afford to
 
Thanks for the helpful replies.

Repayments are around 1150/month over 10yrs. If I go for interest only then its just under 500e/month for 3 yrs followed by 1500e/month for 7 yrs.

2nd option seems unmanageable as with things the way they are my take home pay wont be increasing much over the next few years.

Im shortchanging my partner on the rent I pay and looking at things I may not make the 3k take home pay every month.

looking at working 60+ hrs a week to have less than a grand to live on.

Loan is unguaranteed so I suppose that gives me some leverage. had been paying 2.9% interest while at college which the lady from the bank told me has expired now.

Bank rep seemed pretty aggressive from the outset of our phone conversation.
 
Finty

Like you I went back to college to upskill.
All banks are going to try and deal with you aggresively.
The bottom line is that you do your best to pay them what you can afford without living on beans or caviar. Be strong with the banks and take no rubbish and ensure everything is in writing because they hate that.
 
Finty;(as I read it)
Never forget the Bank took a gamble on you. It is not presently working out and you wish to sort without aggro.
T&R . I agree with you in that Finty pays what he can reasonably afford without being a pauper.
So Finty work out reasonable living expenses , put that in writing to Bank and ask for their response.

DO NOT BE BULLIED into an unmanageable repayment.

As T&R says{take no rubbish}

Good Luck.
 
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