Student Debt Worries

J

jake07

Guest
I currently have an unauthorised overdraft of €350 on my AIB current account. I also have €1000 outstanding on a loan to AIB which is paid up date.

I have a direct debit set up on my current account to pay the loan repayments(about €20 per week), but about 30 of these weekly direct debits have been returned unpaid. I have paid monies owed for these repayments separately into the loan account.

I'm worried that these unpaid direct debits will have a drastic effect on my credit history? Is this the case?
 
I'm not sure but for €6 if you can spare it then you can check your [broken link removed] to see if there are any missed payments recorded.

One a more general point perhaps you need to address the budgeting/spending issues that are causing you to miss payments/DDs? Perhaps if you post more detailed info about your incomings, outgoings/spending then people can comment and suggest areas for improvement?
 
In BoI having unpaids would definitely affect your ability to get another loan or a credit card.
Falling behind on loan repayments would look even worse.

The worst thing you can do for your credit history is to leave a bad debt. Then no financial institution would conduct business with you for a long time.

Sorry to be the bearer of bad news but I presume AIB would have the same policy & it's better for you to know & rectify the problem asap.
 
I would contact the bank asap to sort before they start ringing you about it. If you go into them and sort a payment plan that suits you will probably be okay but if you let it slide it will affect your credit without a doubt, the worse thing you can do is miss payments on a loan, overdrafts and credit cards should not be misused but you should never miss a payment on a loan. You should go to bank to sort.
 
Missing payments definitely shows up on your credit history. When applying for our mortgage, one missed car loan payment by hubby years ago showed up and had to be explained tothe bank official. I would definitely check your credit rating and then set about doing all that you can to improve it. Good to be thinking of this now though, rather than when applying for a mortgage.
 
The ICB track loan payments for 5 years - this may sound dramatic and traumatic - but if I am correct in inferring you are a student - possibly 3rd - 4th year (from the responsibility to be thinking of your debt).
With respect to a mortgage - you probably wont be buying a place for 5 years - until you get yourself established in a career any way.
Car Loan -
II would also look in to putting some money in a credit union - I know moniies are limited - but if you build up a history of little loans and successful payment this his how you can get a car loan -

So you see your situation isn't unsolvable, but I would work with the bank in helping to address this issue. If the bank see that you are responsible that will be of huge benefit to you.
P:)
 
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