Help Credit Union Loan

jasper27

Hi

Long story short - I got behind with my mortgage, and got a council Breathing Space Loan which paid off my mortgage arrears.. I am now up to date with my mortgage and paying monthly.

I have been paying the BS loan off at £110 a month but the loan term runs out this next week and I still have a balance of £4640 to pay off.

I've been trying to get this settled, and have joined the Credit Union.

I had to make a transaction of £56 which has gone through ok, the next step is to call in branch and see someone about a loan.

My concerns are, will they loan me the amount to pay off this debt or is this not what these loans are for?

Also if I do get a loan, what would the payments be over 5 years? Do they loan that amount of money over 5 years?

I've tried ringing them, but they say I need to come in and speak to someone.

Also what happens to the £56?

Thank you in advance.

[Deleted User]

Very unlikely they will lend you almost £5k on your first loan.

I assume the £56 was to start saving with them. What did they tell you when they ask you for it?

jimmy*c

First things first you need to talk to the council about your circumstances before you go looking around for a loan to pay off a loan.

jasper27

They told me I needed to make a transaction payment of the minimum monthly repayment of £56, that was all they said.

What do you think their maximum loan amount might be?

jasper27

jimmy*c wrote: »

First things first you need to talk to the council about your circumstances before you go looking around for a loan to pay off a loan.

I'm in regular contact with the council, they said there is a possibility they may extend, but not definitely, I need to be showing that I am trying other ways of clearing the debt.

They also told me to be prepared to put my house on the market..

This is my biggest fear, I can't stop crying and worrying about it.

Gaz83

Credit Unions usually require you to be a member for a good while before giving a loan, especially one for that amount.

You need to talk to the council, especially if you have a loan secured against it.

Morglin

My credit union only lends 4x whatever you have in savings, and after a first loan has been paid off successfully, they will lend 5x savings plus £500. (subject to status, of course).

They prefer to lend a small amount, as a first loan.

Others may work differently, but most operate along those sort of lines.

Lin

David147

You need to be a member of that credit union, and have a good credit rating.