Nervous about talking to the bank

JBoyle4eva

OK, I've to go into the bank ASAP to deal with urgent things, but I don't think I can face what's gonna happen if I do. I've received two letters from the bank as of recently. One was just a letter, asking me to get in touch. But now they've sent a letter asking me to come into them to discuss arrears that have fallen on my loan.

Now, I'm a third level student. I'm waiting on my grant, but until then I can't get any money into the loan. But the county council (Galway CoCo, to be specific), haven't confirmed I'm getting the grant yet offically by letter, yet I'm certain to get it.

And plus, since I got my loan, I've lost my part-time job and can't find another.

Does anyone have any advice here on how to tell the bank about my situation. I'm really nervous because I really don't know what to say to them. I'm really scared I'll end up in bad credit because of this loan.

kittenkiller

Be professional and honest.

You're not the only person who has fallen behind on your loans.

If the option to reduce your repayments arises, be practical, there's no point in telling them you can pay back an unreasonable amount each week/month when you'll just end up falling behind again.

Can you ask friends or family to help you out of the hole for now?

Best of luck OP.

Sir Oxman

Firstly, don't panic.

Never ignore money problems - you should make out a financial statement detailing down to the last bit your present income and expenditure. You can download a doc from mabs.ie

Ideally, you should have written to the bank before you went into arrears, but what's done is done.

With your financial statement (with back up documents), offer what you can afford, the statement will basically calculate that figure for you but you must be 100% honest on all your outgoings.

I would offer this in writing with the proviso that it's a temporary arrangement until your circumstances improve. Pay into the loan this amount immediately.
Bring your written proposals with you to your meeting.

Whatever you do, do not promise what you cannot afford as if the bank agrees and you miss a payment, they will have you.
The bank may even reject your offer, do not be frightened, keep paying what you can afford and reiterating that this is a temporary situation.
Keep everything to written correspondence after speaking with them.

I do not know if they will deafult you on your loan

Biggest piece of advice is confront your problem, take command and do not let money worries take hold of you.

All the best.

St James

best thing is to call in to them to discuss. As previously suggested, lay out all your cards on the table. Its much better to face it head on with the truth, than to bury head in sand and let it overwhelm you.

try to think of the person who is sending out the letter. if there is no response, that person will lose any sympathy for you and will only get to sending stronger letters and let the thing snowball.

go in, talk and again as suggested, follow up the talk with a letter. In the letter, you would confirm the agreement you have made with the bank.

RossFixxxed

I work in a bank, we are so much happier when people contact US to say they are in difficulty and we can acommodate them and work on a plan so they ultimately can pay off their loan rather than people who miss a lot of payments and hide from talking. That causes a lot more work, a lot more complications and stress all around.

Go talk to them, and keep it professional and polite, we're not mosters in any office, and we do try to help!

R

ash23

I missed a loan repayment a few months ago as my car died and cost me all my savings to fix plus most of my wages that month. No car = no job though!

So I rang them, said I wasn't able to pay it that month but would pay 100 on top of my existing payments for 3 months until the arrears were cleared. They were unsure but I pointed out that if I paid the full amount there and then I would miss the next month and I didn't want a continous cycle of missing payments, that I felt it was better to miss one and spread that over a few months.
They were totally fine with it. I made the effort to pay and they'd rather get that payment eventually than never.

Go in and talk to them. These things happen to us all, moreso they way the economy is now. they've heard it all before. The worst thing to do is ignore the calls and letters as it will just spiral from there.

wexford202

RossFixxxed wrote: »

I work in a bank, we are so much happier when people contact US to say they are in difficulty and we can acommodate them and work on a plan so they ultimately can pay off their loan rather than people who miss a lot of payments and hide from talking. That causes a lot more work, a lot more complications and stress all around.

Go talk to them, and keep it professional and polite, we're not mosters in any office, and we do try to help!

R

I don't work in the bank but I do agree that they are far from monsters. They are trained professionals themselves and have a full understanding of people's financial difficulties.

I wouldn't panic at all.

Wrire down how you can honestly see the ways of paying back the loan even if you are unable to make payments for two months when you are waiting for the grant.

Ask Galway CoCo can they give you some form of letter to say you are entitled to the grant based on the documentation or information provided to them.

You will see after you meet with the bank that you will have had a large weight lifted off your shoulders and remember that there are always people far worse off than you are and you aren't going to be kicked onto the street.