Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    Carlo Gambino
    Unable to repay credit union loan
    • #1
    • 20th Oct 11, 11:46 AM
    Unable to repay credit union loan 20th Oct 11 at 11:46 AM
    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
Page 1
  • opinions4u
    • #2
    • 20th Oct 11, 11:56 AM
    • #2
    • 20th Oct 11, 11:56 AM
    Why should other members of the credit union pay your interest for you?

    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.
  • Ames
    • #3
    • 20th Oct 11, 12:20 PM
    • #3
    • 20th Oct 11, 12:20 PM
    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.


    Recent reads: Everyday Sexism by Laura Bates. Headscarves and Hymens by Mona Eltahawy. The Dark Net by Jamie Bartlett. Black Milk by Elif Shafak.
  • Carlo Gambino
    • #4
    • 20th Oct 11, 12:33 PM
    • #4
    • 20th Oct 11, 12:33 PM
    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.
    Originally posted by opinions4u
    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.
  • Carlo Gambino
    • #5
    • 20th Oct 11, 12:35 PM
    • #5
    • 20th Oct 11, 12:35 PM
    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.
    Originally posted by Ames
    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.
  • chalkie99
    • #6
    • 20th Oct 11, 12:43 PM
    • #6
    • 20th Oct 11, 12:43 PM
    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.
  • Carlo Gambino
    • #7
    • 20th Oct 11, 12:57 PM
    • #7
    • 20th Oct 11, 12:57 PM
    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.
    Originally posted by chalkie99
    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?
  • DCFC79
    • #8
    • 20th Oct 11, 1:11 PM
    • #8
    • 20th Oct 11, 1:11 PM
    Your benefits dont get messed up you just get a reduced amount in benefits.
    Credit score/ratings don't exist, lenders don't see them.
  • Carlo Gambino
    • #9
    • 20th Oct 11, 1:37 PM
    • #9
    • 20th Oct 11, 1:37 PM
    Your benefits dont get messed up you just get a reduced amount in benefits.
    Originally posted by DCFC79
    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.
  • CHR15
    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.
    • fatbelly
    • By fatbelly 20th Oct 11, 1:53 PM
    • 8,804 Posts
    • 6,489 Thanks
    fatbelly
    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.
    Originally posted by Carlo Gambino
    If you're a single person you can earn £5 per week. After that, your JSA is reduced £1 for £1
  • Carlo Gambino
    If you're a single person you can earn £5 per week. After that, your JSA is reduced £1 for £1
    Originally posted by fatbelly
    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.
  • tell_it_how_it_is
    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
  • Carlo Gambino
    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).
    Originally posted by CHR15
    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.
  • Carlo Gambino
    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.
    Originally posted by tell_it_how_it_is
    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
    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
    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.
    Originally posted by Carlo Gambino

    £30 p/w is very high for gas & electricity.
    Have you checked you are on the lowest tarriffs?
  • Caz3121
    find myself unemployed and receiving benefits of £60 per week. That's £240 per month of which the CU are looking £50 of.
    Originally posted by Carlo Gambino
    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
    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.
    Originally posted by Carlo Gambino
    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



    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"?

    .
    Originally posted by Carlo Gambino
    How much have you borrowed that the interest is £53 per month?
Welcome to our new Forum!

Our aim's to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

67Posts Today

3,367Users online

Martin's Twitter
  • RT @MoneySavingExp: Hi folks - the site will be down from 10pm tonight until 8am tomorrow while we re-charge the batteries with some behind?

  • Uk dominating world long jump.Who'd have thought it. Kathy Cook's British 200m record about to go I think. #Beijing2015

  • RT @MoneySavingExp: If you're affected by the #HSBC payments glitch, here's what you need to do (more to follow, when we get it): http://t.?

  • Follow Martin