Loan from Credit Union

exharris

Am in debt to the tune of £10800 to various creditors, being managed via a DMP with the CCCS, repayments of 191pcm. This is OK, have applied for a 10k loan with the Credit Union from work, with a view to settling my debts. The loan repayments will, if successful, come out of my salary, which makes it easier for me to manage. I provided proof of income, proof of bank statements and a income expenditure breakdown, which gives me a £640pcm dispoable income if my loan was successful. I hope I'll be successful with the application, but I have late payments on my credit, and some defaults (the CCCS payments are less than the contractual payments to the creditors).

They say they're only looking for CCJs on the credit file, and I'm certain I've none of these as I've never got a letter from a court.

I really hope I'm successful on the loan as it will really change my life. I want to settle the debts of £10800 for 65-70% of the balances and get a car with the difference.

Does anyone have any experience of applying for loans with credit unions and can anypone give me an idea of whether they think I'll be successful or not.

[Deleted User]

you have debts of £10,8000 and are in a DMP,you want to borrow another £10,000 and buy a car,you have late payments and defaults against you
doesnt look good does it?
A credit union has a duty to lend its money sensibly after all the money belongs to people like you and me,more so than some faceless bank.
Your chances if i`m honest look less than good

R0bert_Sterling

exharris wrote: »

I really hope I'm successful on the loan as it will really change my life. I want to settle the debts of £10800 for 65-70% of the balances and get a car with the difference.

That single sentence has made this trolling post a success.

No doubt you thought the previous £10,800 worth of loans were also going to really change your life!

Yet, here you are, looking for a way of only repaying half of your debts whilst merrily swanning off with more of someone elses' money to waste on something you absolutely do not deserve.

I don't like to post without giving advice too, so all I can say is don't ever sign anything, or enter into any contracts unless you have an adult with you who can explain things using crayons and such.

CHR15

^^ Well that just about sums it up! :rotfl::rotfl::rotfl:

get_me_out

Firstly don't take previous comments to heart after all you asked for advice not your wrist slapped!

A credit union looks at your situation differently from other lenders as you prob know already. What they want to see is that you can manage your new smaller payments. THEY WILL ask about your debts and how you got in a mess. Just to satisify them that you know your mistake and understand how to avoid it again. After all they are thinking of lending you other peoples money.

Be HONEST with them and thats all they ask, and they will listern to you without judging you.

VIGILANT22

Credit Unions are there to help people.......

borders_dude

I cannot stand irrisponsible borrowers! Especially those who take loans from credit unions as these are owned by members.

exharris

Thanks for all these reponses.

Firstly, I am trying to take control of my finances here. I have gotten into trouble in the past, but the CCCS option is not working. They said the creditors would suspend interest yet most have not. They tell me the debts will be repaid in 5 years, but this is based on the assumption that the interest will not be charged, and it is. Also, they are regularly missing payments even though I am making monthly payments to them, causing fuss with my creditors.

There IS interest on the loan applied for from the credit union, however, I also Save each month with them. They won't let you lend without also Saving. With the interest, it will take 3 years and 9 months to repay the 10,000. However, staying with the CCCS, it will take nearly six years.

Also, I would like to remind people that I am not getting into more debt. I am in effect reconsolidating the existing debts with various creditors, lending the SAME amount that I'm in debt for. If my creditors accept full and final resettlement at less than the balances, then the difference (if any) will be used for a car.

Also, as the repayments come from salary directly, it's far easier to actually manage repayment (well you don't have to actually do anything at all), and I'll be saving at the same time (£50/month). At any point of the loan, I can offset the savings made against the balance, clearing it quicker.

This plan would get me out of debt much qucker, and in a much easier way than the existing plan. Also, I can overpay on the loan at any point without being penalised.

I am a bit dissapointed at the response from people on here. I don't know on what basis they think this loan would be 'irresponsible'. How am I an irresponsilble borrower? On what basis would it be irresponsible for them to lend to me?

I don't understand what a 'trolling' post is, but I asked this question on the (obviously) misguided assumtion that perhaps someone who had any experience of credit unions, or maybe who had worked for one, etc, may have responded (maybe someone who knows what they are talking about).

I have sent proof of my salary for last three months, and bank statements. I've proved all my bills, etc. They know exactly what I have coming in and what's coming out, and my understanding is that most lendors don't do this, but in any case, if I'm successful my disposable income (after I stop paying CCCS) will be £640, and I've proposed payments of £250 against the debt.

In any case, we'll see. Yes, I was under the impressions that credit unions were there to help people also.

Thanks to the few people who haven't attacked me.

Not a particularly welcoming response to my first post on this forum.

DadsDown

A few things....
Firstly most posters don't agree with borrowing more money to repay old money, hence the attitude. Though this may appear unhelpful, it is not intended that way, and CU is the way to go.
Secondly, savings on a credit union may only be offsetted against the loan when the savings are greater than the amount outstanding, therefore 'not at any time'. I imagine it would be handy coming out of your salary, but a DMP is only a single payment anyway. Remember too that you cannot afford to get into any issues with work, etc.
Thirdly, although I can see your plan, I don't agree. If you have a disposable income of £640 why do you not utilise this to it's full extent? I am a little surprised too that CCCS did not request larger payments as you appear to have the money. You don't illustrate your actual debts, but you could certainly pay more each month or save the extra cash to make F&F offers against them. You could definately reduce the time period (to around 16 months!!!), especially having taken advantage of CCCS in the first place.
You could clear your debts through your own hard work, and buy a car at the end as a reward for it. At least you would only be borrowing for the value of the car at that point. It would also remove your doubt about being granted the loan now.
Overall I guess you are like everybody else, and want to have your cake and eat it too! Understandable, but perhaps not the best plan.
Finally, I am only trying to show options. If you go your original way, good luck!

CHR15

I must admit I considered this was a Troll post.

Trolling is many things, one of which is to illicit a response knowing it will cause arguments (e.g. rubbing people up the wrong way)

IF you could get a loan (which is unlikely) to cover all your outstanding debts, then this loan SHOULD be used to clear all of your debts, not throw breadcrumbs to your creditors and keep some for a new car!

If you are saving money, then you are not taking your debts seriously enough (throwing breadcrumbs again) and you should be striving to use your disposable income to service those debts and get shot of them as soon as possible.

Of course, there are members on MSE who think you should simply ignore creditors and look for ways out of paying.
Once these two types of posters meet there are fireworks ===== Trolling Post.

exharris

Thanks for the explanation about trolling. Regards your first point, "this loan should be used to clear all your debts", are you saying you would think it OK if I just paid 100% of the balances, and used the whole 10k loan to clear it? Whist this would deliver the consolidation, and facilitate easy repayment via salary, my view is that if the creditors are prepared to accept a full and final settlement offcer, why should I pay more? There must be a reason why they accept !!!!!! offers - I thought the idea of !!!!!! is that the creditor gets the debt cleared off quickly, so we both benefit.

Consdider that I had a wealthy parents who had some money but not enough to give me full 10k, would a !!!!!! sitaution in those circs be unacceptable to you ("throwing breakcrumbs again")?

I don't think that one should "simply ignore creditors" Far from it, I rang them all last weekend, and it was then over the phone that one offered to settle at 50%. This is what gave me the idea of applying for the loan.

My query was more about the decsion making process that the CU would go through. I suppose it varies from one to the other, but we'll see. If it's not accepted, then nothing ventured, nothing gained, and I'll carry on with the CCCS (and do another budget, which is due, which will mean increased payments as my income has increased since the first). And before you 'flame' me (is that the right term?), I know I need to tell the CCCS about this, but it only happened a few months back (Dec), and I've not gotten round to it.

I am considering also in the future managing the whole debt thing myself. CCCS seem incapable of distributing the payments evenly each month.