Unable to repay credit union loan

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  • fatbelly wrote: »
    If you're a single person you can earn £5 per week. After that, your JSA is reduced £1 for £1

    Yeah that's about my understanding of it too so even if I was to earn £30 extra a week a would be £5 better of.
  • I think Chr15 offers fair advice.

    Work out what you must spend each week on your essentials, and then see what you can set aside as an weekly payment.

    Then take this information to CU and at least listen to what they can offer with their payment plan options.

    And should you find a new job later on, you can then start throwing a lot more at it.
    “In any moment of decision the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing at all.” - Roosevelt
  • CHR15 wrote: »
    Sorry OP but you are coming across as completely beligerant.

    Credit Unions are an absolute godsend to so many people, they take a HUGE risk by lending to people no sensible lender will even look at.

    You say "I feel like simply sticking the finger up at them for their callous attitude", well that is exactly what you are doing already.
    You want to completely ignore this debt until you feel you are ready to start again, with no consequence. This will have a knock on to every other borrower (unless you desire a specific agreement solely for you, not anyone else).

    You couldn't be further from the truth with that. This isn't a case of me being selfish mate. Let's employ a bit of logic here if you could; it isn't a case that it doesn't suit me to pay anything at the minute but a case that financially I cannot afford to. That is it in a nutshell and there is nothing more that can be added or taken away from that. If you don't have it you can't pay it back.

    If I had of wanted to "ignore" this I would have.....well simply ignored it and them and there isn't a damn thing they could have done about it as I don't own a car or my own home so in reality it would have been tough cookie for them and everyone else involved in that credit union. But I don't want to ignore anything as soon as I found out my job was going I went to see them and assured them I would keep them updated which brought me back over again today.
    They are offering you help but you are refuting that help.

    I am not "refusing" anything. To refuse is to reject by choice. I have not refused anything or rejected anything I am simply not able to pay anything at the moment. That's like stating that someone in a wheel chair is refusing to walk - nonsense and incorrect in the extreme.
    You go on to imply it is not worth working as it will risk your benefits, from your working days, can you see how people read that statement??

    Jumping Jesus save me. I was responding to a previous poster would suggested I go out and clean windows to get the interest payments and I responded by asking what would be the point of working to get £50 per month for that £50 to be taken out off my benefits? Logic again mate. I have worked my whole adult life and was in the same job for 10 years - me and work go well together it is not my enemy.
    Appreciate that is not what you meant, but it is what you said.

    It doesn't sound like you are interested in their "new account with a repayment plan" offer.
    How do you know what this arrangement will be? You are dismissing it out of hand as it will require you to pay "something" toward your debt.

    In the hope not to sound ignorant my friend; did you actually read any of what I posted? What arrangement are you talking about? What am I dismissing out of hand? I will repeat; the manager insisted that I have to repay the interest every month which works out at about £53 exactly. I receive £240 per month on benefits (£60 per week). I mentioned this to the manager who said there is nothing else he could do. What exactly am I "dismissing out of hand"?
    You could go over to the DFW board and make a post there. You will immediately get "GOOD" advice about cancelling your mobile phone contract, ditching Sky TV, laying the car up, switching utilities, reviewing food bills etc... but to achieve anything, you have to WANT to achieve something.

    Besides, the whole point of a CU is to SAVE with them, and take advantage of the superb loans they offer for their savers.

    Ah mate seriously you're reading a different thread. It doesn't matter how much I WANT to change not losing my job, it doesn't how much I WANT to have my debt paid of nor does it matter how much I WANT to be looking forward to my wages in preparation for Xmas - it is not going to happen. Choice has been removed from me at the minute. It may not be the case for long and I remain optimistic but please at least try and portray a true reflection of the facts as I present them as opposed to an incorrect analysis of the situation having not fully read the information provided.
  • I think Chr15 offers fair advice.

    Work out what you must spend each week on your essentials, and then see what you can set aside as an weekly payment.

    Then take this information to CU and at least listen to what they can offer with their payment plan options.

    And should you find a new job later on, you can then start throwing a lot more at it.

    I sat there and tried to work out household expenditure as per your advise and I actually feel is worse mood now:(.

    Roughly speaking:

    £60 per week

    £10 electricity
    £20 Gas -heating & water (noting this increasing during winter)
    £2.50 mobile phone

    That's £32.50 per week literally cutting away everything else including home insurance leaving £27.50 for a weeks food. I changed electricity companies recently that dropped my bills down a few pounds per week and my gas estimation is very conservative considering last year during the cold weather it was costing me around £40 per week.

    What realistically could I offer them at the minute? I believe the £10 per month for a mobile phone is a necessity in order to keep in contact with the world. Genuinely perplexed at present. Don't wish this situation on anyone.
  • grizzly1911
    grizzly1911 Posts: 9,965 Forumite
    The fact that you cannot meet the interest or the scheduled repayments mean you are in default.

    If you leave it they will pursue you and ensure your credit file is noted at some point.

    Work out if you can afford to give them anything even it is £10/20 per month. List your "income" and outgoings and let them see you are trying. Is there anything else you could ditch to help?

    It may be interest to accept the closure of the account and accept the repayment plan unless you foresee another way out. If things improve and you feel able to make up the difference I am sure they would like to recoup their loss.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • CH27
    CH27 Posts: 5,531 Forumite
    I sat there and tried to work out household expenditure as per your advise and I actually feel is worse mood now:(.

    Roughly speaking:

    £60 per week

    £10 electricity
    £20 Gas -heating & water (noting this increasing during winter)
    £2.50 mobile phone

    That's £32.50 per week literally cutting away everything else including home insurance leaving £27.50 for a weeks food. I changed electricity companies recently that dropped my bills down a few pounds per week and my gas estimation is very conservative considering last year during the cold weather it was costing me around £40 per week.

    What realistically could I offer them at the minute? I believe the £10 per month for a mobile phone is a necessity in order to keep in contact with the world. Genuinely perplexed at present. Don't wish this situation on anyone.


    £30 p/w is very high for gas & electricity.
    Have you checked you are on the lowest tarriffs?
    Try to be a rainbow in someone's cloud.
  • Caz3121
    Caz3121 Posts: 15,532
    Name Dropper First Anniversary First Post
    Forumite
    find myself unemployed and receiving benefits of £60 per week. That's £240 per month of which the CU are looking £50 of.

    Your JSA should be £67.50 per week which is £292.50 per calendar month

    So if you are budgeting on £240 per month you actually have £52.50 more than you think so can make the payment without impact
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    I sat there and tried to work out household expenditure as per your advise and I actually feel is worse mood now:(.

    Roughly speaking:

    £60 per week

    £10 electricity
    £20 Gas -heating & water (noting this increasing during winter)
    £2.50 mobile phone

    That's £32.50 per week literally cutting away everything else including home insurance leaving £27.50 for a weeks food. I changed electricity companies recently that dropped my bills down a few pounds per week and my gas estimation is very conservative considering last year during the cold weather it was costing me around £40 per week.

    What realistically could I offer them at the minute? I believe the £10 per month for a mobile phone is a necessity in order to keep in contact with the world. Genuinely perplexed at present. Don't wish this situation on anyone.

    Your utility costs are enormous and £27.50 for food is a great deal for one person. You should easily be able to shave £5/£10pw off these figures.
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite



    the manager insisted that I have to repay the interest every month which works out at about £53 exactly. I receive £240 per month on benefits (£60 per week). I mentioned this to the manager who said there is nothing else he could do. What exactly am I "dismissing out of hand"?

    .

    How much have you borrowed that the interest is £53 per month?
  • Esoog
    Esoog Posts: 1,489
    Combo Breaker First Post
    Forumite
    How are you accessing the forum? Internet is not a necessity in times of hardship...?
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