debt repayments negotiation!!

W

wesgt

Lifer
looking for some info from anyone that has gone through this process.
basically i lost my job a while back, have around €25k of debt, 13k to credit union with repayments of €120 a week and 12k to aib bank at €70 a week!
currently receiving social welfare of €196 a week.
have already gone to the bank and credit union to see what they can do.

bank:
informed them i was out of work, they said if they spread my loan back out over a full term it will go from 70 a week to 67, which is crap!!

credit union:
went to them also, can reduce from 120 to 70 a week by spreading over a full term again.

so basically they're looking for €137 out of a total of €196, which is unsustainable imo.

I have to put fuel in my car, and get food and all the other usual stuff, and before anyone mentions fuel, i don't even drive the gt anymore, drive the diesel corolla runabout.
so €59 isn't going to get me far :haha:

at the moment the bank is on a pause for a couple of months, payments restart 9th of september, and i'm currently giving the credit union €50 per week.

so, they don't seem up for negotiating down from there current figures, but you can't get blood from a stone and all that!

I was planning on going to both and offering €30 per week each, not a long term solution but will have to do until i sort myself out!

anyone any experience with telling creditors what you can afford to pay, and not what they want you to pay?
 
pig666eon

pig666eon

Member +
i have a friend who has about 15k from the bank and lost his job, he was paying back near 400 euro a month

anyway he lost his job and was barely living on what he was getting from the dol and went into the bank to sort out payments and get them lowered

he went in first and told them i could afford 200 a month until he got back working and that was a big portion of his dol at the time, they rejected it so he said fuck them he was making the best of a bad situation

anyway he didnt pay the monthly repayments and then he got a call from the head office saying he had to pay or he was going to court for it, he told them to take him to court as he had kept all docs to say the bank rejected taking payments from someone who wasnt working. so they rang him up 3 days later and asked him how much could he give a month and he said he would give 50 euro a month till he got back on his feet

the bank accepted and he had no trouble from them since they key was to prove you were trying to pay them back and they said no cause it wouldnt hold up in court if a judge seen you werent working and still willing to pay so keep everything the bank gives you and ask for the stuff they dont want to give you

same situation another friend went to court, had no job but willing to pay he now is paying a tenner a week and that was a court order

look man your not the only one ha
 
W

wesgt

Lifer
pig666eon said:
i have a friend who has about 15k from the bank and lost his job, he was paying back near 400 euro a month

anyway he lost his job and was barely living on what he was getting from the dol and went into the bank to sort out payments and get them lowered

he went in first and told them i could afford 200 a month until he got back working and that was a big portion of his dol at the time, they rejected it so he said fuck them he was making the best of a bad situation

anyway he didnt pay the monthly repayments and then he got a call from the head office saying he had to pay or he was going to court for it, he told them to take him to court as he had kept all docs to say the bank rejected taking payments from someone who wasnt working. so they rang him up 3 days later and asked him how much could he give a month and he said he would give 50 euro a month till he got back on his feet

the bank accepted and he had no trouble from them since they key was to prove you were trying to pay them back and they said no cause it wouldnt hold up in court if a judge seen you werent working and still willing to pay so keep everything the bank gives you and ask for the stuff they dont want to give you

same situation another friend went to court, had no job but willing to pay he now is paying a tenner a week and that was a court order

look man your not the only one ha
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thanks for that :) just what i was hoping to hear!
i didn't want to go down the court route, it would be nice if they'd accept my offer!
but it will more than likely go to court and they will have to accept what i can pay.
i know lads that don't pay at all, one friend has near 50k in debt and he can't be found by the banks!
@jack just bad luck, getting loans for cars, 1 was crashed without an insurance payout at a loss to me of 14k. lots of people in the same boat, just being silly with money!
 
pig666eon

pig666eon

Member +
wesgt said:
thanks for that :) just what i was hoping to hear!
i didn't want to go down the court route, it would be nice if they'd accept my offer!
but it will more than likely go to court and they will have to accept what i can pay.
i know lads that don't pay at all, one friend has near 50k in debt and he can't be found by the banks!
@jack just bad luck, getting loans for cars, 1 was crashed without an insurance payout at a loss to me of 14k. lots of people in the same boat, just being silly with money!
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no probs man like i said keep everything as if it does happen to go down that route you will need something in your favour

my advice would be to go in and have a meeting with the manager, tell him what the storie is and see if yous can come to something as this will prob affect your credit in the future

if all that fails draw up a piece of paper stating the date you were in, how much you were willing to pay and it was declined. then get him to sign and date it, id say that is all you will need as proof you did try and make a offer. if he asks whats its for just say you were advised by your solicitor to get this info and i would say he will change his tune about taking you to court as 9/10 a judge will find in your favour if you can prove you are trying to pay back and the banks know this

the banks try and scare you into paying, but as soon as you mention you were getting legal advice they will play ball ive seen it myself lad

dont get me wrong im not condoning getting loans and not paying but if your making the best of a bad situation they shouldnt be beating you down over it
 
Iain@CRD

Iain@CRD

Lifer
xxjack189 said:
How did you rack up so much debt? if you dont mind me asking?
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It does not matter how he ran up the debt, that is upto Wes and is his own business.

Im not sure how it works in Ireland but i know how it works in the UK as i use to work for a Debt Collection Agency.

In the UK there are free bodies like for example ... PayPlan, Citizens Advice etc etc that are able to do Income and Expenditure reports (incomings and outgoings) to see how much you have left each month. Whatever is left is what they class as disposable income that can be paid towards Debt.

After an agreement is agreed with all your creditors you setup a payment plan and stick to it, every 6 months they will re-evaluate your situation and employment status to see if your disposable income has changed.

Hope thats some use.
 
E

easty-5

Member +
Sell the GT would be the first thing to do. Secondly I'd sell the Corolla. Owning a car is a luxury and it would appear that you can't afford much luxuries at the minute. Use the money you make from selling the cars to pay the debt for a few months whilst you find yourself a job.

Are you a home owner?
 
pig666eon

pig666eon

Member +
i wouldnt sell the car sure you would sell it and still owe them money, if you say the car is need to look for work they wont look into it anymore
 
E

easty-5

Member +
pig666eon said:
i wouldnt sell the car sure you would sell it and still owe them money, if you say the car is need to look for work they wont look into it anymore
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You'd sell the car as a means of beggining to sort out your finanaces. It's not a game of cat and mouse you know. Bad credit will effect you for a long time. I assume he is not a home owner. When he comes to look for a mortgage then he is going to find it extremely difficult to get one.
 
pig666eon

pig666eon

Member +
easty-5 said:
You'd sell the car as a means of beggining to sort out your finanaces. It's not a game of cat and mouse you know. Bad credit will effect you for a long time. I assume he is not a home owner. When he comes to look for a mortgage then he is going to find it extremely difficult to get one.
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well i wouldnt beg for anyone man i wouldnt care who it was especially the people who put you in the situation you are in now, you can only do what you can do with out demeaning yourself. even if he sells his car and gets reduced payments he is still going to get bad credit, if you steer anyway from the initial agreement you are considered as a bad asset. the money he would get for his car agenst what he owes is not going to make a difference if they are going to give him bad credit for just say 20000 they will give him the same bad credit for 15000.

bad credit or not no one is getting a mortgage and prob wont for the foreseeable future
 
W

wesgt

Lifer
thanks for that lads! not a homeowner, i'm living with parents.
as for selling the car, that wouldn't do me any good. i need a car to get about as my girlfriend lives an hour away from me. i'm not going to give up everything to sit at home just so i can pay off debt.
i don't intend on being one of these lads that doesn't pay, what i agree to pay i will pay without fail until my circumstances change!
as for the credit, i'm not even worried about that, a lot of people are in the same situation, and their credit would be the least of their worries!!
thanks pig666eon, you've been a big help!
 
scot-ish

scot-ish

Member +
as has been said already, the banks have to accept a payment, they are not allowed to refuse a payment, if its what you can afford.

as for the selling things and not, look into how long it will take to repay, on a repayment plan, as you can declare yourself bankrupt, but this will take a long time to get any sort of credit, altho now if you miss payments, you will be deemed bad.

i was in a situation similar bout 8 years ago, i owed alot to lloyds tsb, and after alot of meetings, and agreements to lesser payments, i then in the end paid back 70% of what i owed in a lump sum, and the rest was cleared, and now i can get credit for anything.

just be carefull with it all, because living at the same address at your parents, im sure the bailifs can come to that address.
 
gv1.3

gv1.3

Admin
Hey Wes sorry to hear you are in this situation. I will give you a little story, might make you feel better, and then tell you what I did to manage the situation and ultimately get it under control. This is an issue that has visited me a couple of times and its not a nice place to be.

So first off when I was 19 I took out a loan... a year later I "topped up" that loan. A year later I "topped up" that loan again. This went on and on and on until I got to my mid 20's. I dont mind telling people where the money went. I bought my car and I enjoyed a lifestyle far beyond that which I could afford. Ultimately I woke up one morning owing a considerable amount of money and had no way to pay it back.

I had credit card companies calling me all the time with semi-threatening messages. Same with the banks and basically before I earned my wages they were already owed out in repayments. I dont consider myself to be a stupid person but I was stupid with my finances back then.

I dont know if you ever worry about this stuff but I remember when it had all got on top of me and credit card companies had even started calling my place of work and asking for my boss and then asking him to put me on the phone... basically trying to scare me in to paying them (still think that was probably illegal).. I remember lying in bed at 4am not being able to sleep and running through things in my head. And I thought "I dont care... I can only do what I can do... there is not a life threatening situation". From that point on I felt better about things and went through a process of sorting out my finances.

The process!
You need to get it firmly in your head that regardless of what you spent the money on or how much you have or have not got to show for it you borrowed the money and have an obligation to pay it back. I started thinking like this and it made a big difference in my efforts to pay it back.

I called each institution I owed money to and asked to speak to my account manager. I explained the situation to them and told them out straight - I cannot afford to make the payments you want me to make, and so that is not going to happen. I can afford to pay you this much right now and if I get spare cash I will pay more as I get it. I told them if this was not workable for them then they would have to begin court proceedings against me. Each place, from bank to credit card company were pretty cool and accepted what I told them.

I got the name and address of each person I spoke to and I sent them a registered letter outlining what I had told them on the phone and I kept a copy of these letters.

With that done I had bought some time. I could make the small payments each month. I then went through a process of analyzing my assets (sounds stupid but this works) and my ability to earn more. I looked at everything from my games consoles to DVD collection and anything else people might possibly want. I put it all on ebay and local for sale forums. Sold the lot and paid the money off to the bank. I did all sorts of extra work to bring in some money, anything I could get a few quid for short of selling me arse. I put all of this off what I owed too.

After I had done this for a while I went back to the bank and asked them to give me a loan covering everything I owed to credit card companies etc. They agreed, they wouldnt give me the loan directly though and instead they paid the credit card companies directly. The loan was structured over 5 years and basically rolled up all of my reckless borrowing in to one big consolidated loan with one bank at a reasonable monthly rate.

I learned two lessons from this whole mess and to be honest getting in to serious debt was one of the best things that ever happened to me:

1) If you want a better lifestyle and more nice things in life you need to earn more money.
2) If you have a problem with anything you need to confront it head on and deal with it as soon as possible, problems do not go away they fester and get worse.
 
W

wesgt

Lifer
dylan you just described my exact situation!!
i always intended to repay everything, i have never missed payments to date. i want these loans repaid as much as the creditors do!
i'm lucky in a way that i have no credit cards etc!
very good advice there, could be an idea to put up a sticky somewhere for people in a similar situation!
thanks for that!
 
gv1.3

gv1.3

Admin
no worries man, just remember that there will be a time when you can look back at this and laugh about it. I paid the last payment off my mahhhooooooooosiveee loan just last month. I had been paying that loan in some form or another for 11 years, since I was 19! It got to a stage where I didnt even notice it coming out of my bank account every month. Now that it is gone I feel like I have grown up a bit and hope not to make that mistake again :)
 
Hazzagray

Hazzagray

Member +
Dylan, that was an epic read! Take some more rep :D

Wes, I work for a bank and obviously see alot of different situations financially. To highlight spending and priorities I use this website

http://www.whatsthecost.com/debt.aspx

Is is really helpful for prioritising your situation and gives you tips and calculators for even things like treating yourself.
have a look through it mate, you can make a really good financial plan with it

Keep your GT mate, you have to have something to look forward to.

Hope you get it all sorted buddy
Harry
 
scot-ish

scot-ish

Member +
gv1.3 said:
no worries man, just remember that there will be a time when you can look back at this and laugh about it. I paid the last payment off my mahhhooooooooosiveee loan just last month. I had been paying that loan in some form or another for 11 years, since I was 19! It got to a stage where I didnt even notice it coming out of my bank account every month. Now that it is gone I feel like I have grown up a bit and hope not to make that mistake again :)
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not to mention, the fact that when it finished, you feel like youve had a payrise from work.
 
Johnny_C

Johnny_C

Lifer
at the end of the day,they cant take the knickers off a bare arse,so they will have to agree to some sort of payment.
 
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