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Unable to repay credit union loan
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# 1
Carlo Gambino
Old 20-10-2011, 11:46 AM
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Default Unable to repay credit union loan

Hi guys,

Wondering if anyone can give me advice on this. I have no other debts apart from a credit union loan which I had been paying up until I lost my job a few months ago. I approached the CU and informed them of my job lose and they asked that I keep them updated on the matter but they would prevent any letters coming out to me.

I went back over today, again to update them, and spoke with the manager. I informed him that I was still unemployed and things weren't looking good. He asked that I maybe look at just repaying the interest for the time being but as I am on benefits now even that seems a lot to ask. I asked if they could freeze the interest payments until such times as my situation changes and he said they couldn't do that - the only way that could be done is to close the account down and set up a repayment plan for the remaining loan amount. This won't help either for if I can't afford to repay the interest how can I set up a payment plan!

Whilst being a nice person to speak with he simply was not leaving any room for manoeuvre for me.

Can anyone offer me advice on the matter? I was under the understanding that the least that could have been done under the circumstances is a freezing of the interest to things get better for me? But to simply rule out any chance of assistance from the CU under the circumstances does not sit right at all.

I feel like simply sticking the finger up at them for their callous attitude
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# 2
opinions4u
Old 20-10-2011, 11:56 AM
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Why should other members of the credit union pay your interest for you?

Quote:
he simply was not leaving any room for manoeuvre for me
What room for manoeuvre do you circumstnces give the credit union? They offered a reduction in payments. You refused it.

See CAB to see if they can give advice.
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# 3
Ames
Old 20-10-2011, 12:20 PM
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Having dealt with commercial companies who really don't give room for manoeuvre, he's giving you loads. Why not pop over to the DFW board, put up a statement of affairs and work out how much you can afford to pay them - even if it's jut a fiver a month, at least you're paying something.
Unless I say otherwise 'you' means the general you not you specifically.
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# 4
Carlo Gambino
Old 20-10-2011, 12:33 PM
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Quote:
Originally Posted by opinions4u View Post
Why should other members of the credit union pay your interest for you?

What room for manoeuvre do you circumstnces give the credit union? They offered a reduction in payments. You refused it.

See CAB to see if they can give advice.
With the utmost of respect to your good self it is that sort of attitude that is most unhelpful. It isn't a case of me refuing anything.

I have not been out of work since I was 17 years old and I'm going on 40 now. I repay every penny that I owe or have owed in the past but for the first time in my lie I find myself unemployed and receiving benefits of 60 per week. That's 240 per month of which the CU are looking 50 of. In that context that is a hell a lot of money. Unlike a lot of other people who may have simply ignored the CU I stepped up to the mark and accepted my responsibility to them, laid my circumstances on the table being upfront and honest. The manager himself awknowledged this.

I cannot afford to pay that kind of money at present and the manager was not prepared to move an inch for me. Maybe there is nothing he can do; either way I think it is the most logical conclusion for the CU to accept that to continue to lump interest on because I can't afford to pay is counter-productive as it will simply mean that the outstanding amount grows thus making it less likely that I can repay anything. This equals them not getting a penny and me walking away from the debt due to simply not being to afford it.

I think when genuine people ask for advice or assistance on forums like this it is your calibre of attitude that simply adds to the issue as opposed to trying to be helpful.
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# 5
Carlo Gambino
Old 20-10-2011, 12:35 PM
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Quote:
Originally Posted by Ames View Post
Having dealt with commercial companies who really don't give room for manoeuvre, he's giving you loads. Why not pop over to the DFW board, put up a statement of affairs and work out how much you can afford to pay them - even if it's jut a fiver a month, at least you're paying something.
My friend was in a similiar situation a year ago and owed Capital One 4000 on a credit card. They froze the interest and gave him a payment break of 6 months then as he was still out of work they kept the interest frozen and setup a repayment option for him. So I was going into this situation expecting something similar in the least considering these options were proposed by a commercial bank and I am dealing with a community organisation.
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# 6
chalkie99
Old 20-10-2011, 12:43 PM
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They have offered you interest payments only with no capital repayment and they have also offered to set up a repayment plan.

That is way better than you can expect from any private institution and you need to realise that rather than criticise Opinions 4 U attitude which is, unfortunately for you, simply realistic.

So, your loan repayments are 12.50 a week? Can you really not find a couple of hours casual employment a week to deal with this? I'd even go and wash windows or cars to raise that little.
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# 7
Carlo Gambino
Old 20-10-2011, 12:57 PM
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Quote:
Originally Posted by chalkie99 View Post
They have offered you interest payments only with no capital repayment and they have also offered to set up a repayment plan.

That is way better than you can expect from any private institution and you need to realise that rather than criticise Opinions 4 U attitude which is, unfortunately for you, simply realistic.

So, your loan repayments are 12.50 a week? Can you really not find a couple of hours casual employment a week to deal with this? I'd even go and wash windows or cars to raise that little.
I'm sure you would too. I had thought of a few ways to get an extra few pounds such as painting but after speaking with the job club apparently I am not allowed to! If I do do anything I must inform them and any more than 5 per weeks earnings means that my benefits get messed about.

Do you think I could get away with washing windows or cars or maybe painting without telling them and if so is that not illegal?
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# 8
DCFC79
Old 20-10-2011, 1:11 PM
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Your benefits dont get messed up you just get a reduced amount in benefits.
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# 9
Carlo Gambino
Old 20-10-2011, 1:37 PM
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Quote:
Originally Posted by DCFC79 View Post
Your benefits dont get messed up you just get a reduced amount in benefits.
Ah thanks for that. That is similiar to what the girl in the jobs centre said she said that depending on what I claimed to earn every week my benefits would change accordingly but that that would in turn mess up my benefits and also delay them.

Off the record she said to me that it defeats the purpose working for so little as if I earned more then 10 my benefits could drop more than I earn. On one hand I see some logic in that but it is sickening when I hear about people working and claiming benefits and I have never asked for 1 penny from the government in all my adult life and I can't earn a few pound extra each week if I notify them.

That is way off the subject though. My original request was for advice on how to deal with the CU and if they have any option at their disposal to help me temporarily or must they risk me not being able to repay a penny because I can't afford it? Even if it went to court I am sure the judge would say likewise that you can't get blood from a stone and I did ask them to bear with me for a period.

Just don't know what to do.
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# 10
CHR15
Old 20-10-2011, 1:46 PM
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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).

They are offering you help but you are refuting that help.

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??
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.

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.
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# 11
fatbelly
Old 20-10-2011, 1:53 PM
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Quote:
Originally Posted by Carlo Gambino View Post
Off the record she said to me that it defeats the purpose working for so little as if I earned more then 10 my benefits could drop more than I earn. On one hand I see some logic in that but it is sickening when I hear about people working and claiming benefits and I have never asked for 1 penny from the government in all my adult life and I can't earn a few pound extra each week if I notify them.
If you're a single person you can earn 5 per week. After that, your JSA is reduced 1 for 1
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# 12
Carlo Gambino
Old 20-10-2011, 2:05 PM
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Quote:
Originally Posted by fatbelly View Post
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.
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# 13
tell_it_how_it_is
Old 20-10-2011, 2:26 PM
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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
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# 14
Carlo Gambino
Old 20-10-2011, 2:34 PM
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Quote:
Originally Posted by CHR15 View Post
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.

Quote:
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.

Quote:
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.

Quote:
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"?

Quote:
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.
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# 15
Carlo Gambino
Old 20-10-2011, 2:55 PM
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Quote:
Originally Posted by tell_it_how_it_is View Post
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.
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# 16
grizzly1911
Old 20-10-2011, 2:56 PM
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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.
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# 17
CH27
Old 20-10-2011, 3:07 PM
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Quote:
Originally Posted by Carlo Gambino View Post
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?
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Caz3121
Old 20-10-2011, 3:11 PM
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Quote:
Originally Posted by Carlo Gambino View Post
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
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# 19
Oldernotwiser
Old 20-10-2011, 3:17 PM
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Quote:
Originally Posted by Carlo Gambino View Post
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.
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# 20
Oldernotwiser
Old 20-10-2011, 3:18 PM
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Quote:
Originally Posted by Carlo Gambino View Post



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?
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