Credit union, irresponsible lending?

Get over to Debt free wannabe forum on the drop down list in the top right.

Post a statement of affairs there. Ask for practical help in reducing your outgoings. Cut out treat food like cake, biscuits, fizzy drinks. Make a sandwich for work lunch. Drink tap water. Review TV and mobile phone contracts.

Get an eBay account and sell off some junk.

Good luck. You can only pay them what you've got. But you can take action to make more money available. Forget finger pointing. That's a two way street, don't you think?

eefington wrote: »

At the time it was fine, it was a lot a month but I could just about afford it, but as time has gone on my bills etc have increased and it's left me without enough to really get by on.

The complaint would more be in regards to their lack of willingness to help out long term, I've had to push hard to get them to reduce my payments for 6 months and they're adamant they have to go back up after that point, which just seems a bit daft to me.

They don't have a crystal ball.


If you tell them you have the means to pay it back, and circumstances change, that's alas not on them.


And yes, you cannot have a change to the loan agreement long term without defaulting, which at the moment you're avoiding with the arrangement.


If you cannot afford the loan payments after this arrangement, you must default and arrange to pay via a DMP. You can do this yourself or get help from a debt charity.


Credit Unions do not exactly have a reputation for bad lending, so I don't think you'll get anywhere by complaining, especially as they're giving you 6 months at a very reduced rate anyway. You should use that time to save the money towards making the payments, or, if you're still in deficit, building an emergency fund to enter a DMP, especially if you have other debts.

eefington wrote: »

but I’m convinced they’ve lent to me irresponsibly

eefington wrote: »

At the time it was fine, it was a lot a month but I could just about afford it, but as time has gone on my bills etc have increased and it's left me without enough to really get by on.

So you borrowed money when "it was fine" so nothing irresponsible there...you said yourself you could afford it
then the payments began to be a problem...I assume you did not borrow any more at this point as you knew you were struggling...if you did then surely that was irresponsible borrowing

Might be worth having a look at the Debt Free Wanabee thread and look at posting a SOA where the very helpful people on that board can help with your budget, ideas for changing utility suppliers etc...as you have found, you cannot borrow your way out of debt so it is generally a case of upping income or reducing outgoings.

StopIt wrote: »

Credit Unions do not exactly have a reputation for bad lending.

Why do so many go bust then?

Think of it the other way around.

When you save with a bank, you are lending them money.

If that bank subsequently goes bust, were you irresponsible for 'lending' them your savings and would you be happy to pay that bank some compensation?

These things always should be 'fair and reasonable ' and it seems your credit union have been exactly that.

Take the advice of others here and head over to the debt free wannabes section for plenty of useful & non-judgemental advice on the positive actions you can take to start to improve your position.

Best of luck.