Hi, I borrowed 30k start up capital with my gf to run a business. it failed. The loan was given as a 10k overdraft facility to the company we formed, and a 2ok directors loan, in our names.
Upon declaring to the bank that the venture had failed, we were asked to pay it back over 5 years. The company account was closed, and the overdraft balance added to the personal loan. Realising we wouldnt be able to borrow for a number of years, i decided to draw the full balance of 10k overdraft before closing it off, leaving us signing for 30k.
We were refused PPI as we usually had a 9 month income from our jobs. The manager also said they would freeze the payments for the 3 months we had no income.
We started hammering away paying 655 a month, with interest of around 588 every quarter...after a year or so we had no savings, and had to borrow from local credit union to insure and tax/ test car etc.
One thing led to another and we missed a few payments. The bank then offered us a reduced payment of 100 per month, in order to give us a chance to save. We accepted.
I should point out it was an unsecured debt, there was no assets, the few things the business required were sold to pay business debts. The project was supposed to cost 30k, cost 58k, the money that did come in paid the wages etc, we took the option of just owing the bank.
We dont have a stash of money, dont own a house or land and only recently started renting a house, having lived in a mobile home for the previous 7 years.
To date we have paid the bank a little over 17,000, with just 8 of it coming off the loan.
Ive recently been asking if they will do a deal, freeze the interest or do something as i calculate that if i pay the remaining 24k over another 4- 5 years ill pay 30-31k inc interest.
I spoke with the Personal Credit Centre, with a seemingly decent enough man, who listened to my arguements etc. He advised that if MABS and me put forward an offer of less than 200 a month they would reject it and go to legal action. He advised me to allow the Debt recovery and insolvency department take over the debt, and then that way i would enter a payment plan for the amount owed. I asked him, and was very clear, that if i did this would i just pay the 24k, and no more and he said yes, that they would pursue the amount owed. I asked him if the interest was frozen then, so that i would just owe the 24 and he said yes. He did advise me it would affect my credit rating.
I then rang my "friend" in the bank and asked him was my interpretation correct, that i would owe the 24k and no more and he said yes, he believed that was the way they worked.
I met with MABS, and was greatful but they want me to write with a nil offer at the moment. However MABS said that if i pay the 24k off, near the end of the term i will be asked to agree a payment plan for the interest and penalty interest that had accrued.
I rang the Personal credit centre today, and got the same gentleman, and i asked him if what mabs said was correct. He very bluntly told me he couldnt say for certain what the procedure was. 7 days after telling me exactly that the debt recovery people would forget the interest and pursue the lump sum. He also bluntly advised me i had 5 weeks left to pay the outstanding balance or face possible court proceedings.
I am unemployed. My partner covers the rent, waste, elec, life insurance etc. she has 28 euro a month left over, incl childrens allowance.
I can get a job, but it involves working away from home for 40 weeks a year, with one day a month to see her and our 4 y/o child. I told the bank i can do this, and prob pay 4000 to 6000 off the loan, and that i would make the sacrifice but only if i was doing it to pay off the 24k and no more interest because if i paid 4000 , i would only clear 1600 off the 24k, if interest applies.
I dont want to come home when my child is a teenager.
Thoughts and advise please!
Upon declaring to the bank that the venture had failed, we were asked to pay it back over 5 years. The company account was closed, and the overdraft balance added to the personal loan. Realising we wouldnt be able to borrow for a number of years, i decided to draw the full balance of 10k overdraft before closing it off, leaving us signing for 30k.
We were refused PPI as we usually had a 9 month income from our jobs. The manager also said they would freeze the payments for the 3 months we had no income.
We started hammering away paying 655 a month, with interest of around 588 every quarter...after a year or so we had no savings, and had to borrow from local credit union to insure and tax/ test car etc.
One thing led to another and we missed a few payments. The bank then offered us a reduced payment of 100 per month, in order to give us a chance to save. We accepted.
I should point out it was an unsecured debt, there was no assets, the few things the business required were sold to pay business debts. The project was supposed to cost 30k, cost 58k, the money that did come in paid the wages etc, we took the option of just owing the bank.
We dont have a stash of money, dont own a house or land and only recently started renting a house, having lived in a mobile home for the previous 7 years.
To date we have paid the bank a little over 17,000, with just 8 of it coming off the loan.
Ive recently been asking if they will do a deal, freeze the interest or do something as i calculate that if i pay the remaining 24k over another 4- 5 years ill pay 30-31k inc interest.
I spoke with the Personal Credit Centre, with a seemingly decent enough man, who listened to my arguements etc. He advised that if MABS and me put forward an offer of less than 200 a month they would reject it and go to legal action. He advised me to allow the Debt recovery and insolvency department take over the debt, and then that way i would enter a payment plan for the amount owed. I asked him, and was very clear, that if i did this would i just pay the 24k, and no more and he said yes, that they would pursue the amount owed. I asked him if the interest was frozen then, so that i would just owe the 24 and he said yes. He did advise me it would affect my credit rating.
I then rang my "friend" in the bank and asked him was my interpretation correct, that i would owe the 24k and no more and he said yes, he believed that was the way they worked.
I met with MABS, and was greatful but they want me to write with a nil offer at the moment. However MABS said that if i pay the 24k off, near the end of the term i will be asked to agree a payment plan for the interest and penalty interest that had accrued.
I rang the Personal credit centre today, and got the same gentleman, and i asked him if what mabs said was correct. He very bluntly told me he couldnt say for certain what the procedure was. 7 days after telling me exactly that the debt recovery people would forget the interest and pursue the lump sum. He also bluntly advised me i had 5 weeks left to pay the outstanding balance or face possible court proceedings.
I am unemployed. My partner covers the rent, waste, elec, life insurance etc. she has 28 euro a month left over, incl childrens allowance.
I can get a job, but it involves working away from home for 40 weeks a year, with one day a month to see her and our 4 y/o child. I told the bank i can do this, and prob pay 4000 to 6000 off the loan, and that i would make the sacrifice but only if i was doing it to pay off the 24k and no more interest because if i paid 4000 , i would only clear 1600 off the 24k, if interest applies.
I dont want to come home when my child is a teenager.
Thoughts and advise please!