Debt Reduction/write off

johnf2020

A friend of mine is in a bit of a pickle. Owes quite a bit of money--2 credit cards, car loan and personal loan.He is in the ****s,basically.
Anyway like many people we has agree terms with all accept the Personal loan. THey will not accept his excuses,they will not accept his statement of means even though his mortgage company has. Anyway, a family member has agree to give him the money which will cover about 60% of the debt, in the hope that the bank would consider writing off the remainer----they wont do it. He has offered them €15000 off the €22000 that he owes.They still want the rest
Surely they should consider it as its the only way he will ever get rid of it. He is now coinsidering paying off the credit cards instead but as this was a bigger amount and telling them to go f**k. What should he do,
Surely the Bailed Out banks should give a little here?????

chris85

johnf2020 wrote: »

A friend of mine is in a bit of a pickle. Owes quite a bit of money--2 credit cards, car loan and personal loan.He is in the ****s,basically.
Anyway like many people we has agree terms with all accept the Personal loan. THey will not accept his excuses,they will not accept his statement of means even though his mortgage company has. Anyway, a family member has agree to give him the money which will cover about 60% of the debt, in the hope that the bank would consider writing off the remainer----they wont do it. He has offered them €15000 off the €22000 that he owes.They still want the rest
Surely they should consider it as its the only way he will ever get rid of it. He is now coinsidering paying off the credit cards instead but as this was a bigger amount and telling them to go f**k. What should he do,
Surely the Bailed Out banks should give a little here?????

The issue here is that dont have to write off anything and if your friend doesnt pay they can just take to court and within their rights.

They will not write off 40% of the debt like that on a personal loan. A credit card company may take the hit if they were at least getting the capital owing on the card back at least.

If you dont mind me asking how much has been offered to pay the loan in comparison to the credit cards. What i am getting at is that the money being offered between them needs to be split proportionally between them based on balance owing. Mortgage gets prioirity.

Trampas

why should the bank take a hit. him not paying what he owes increases the hole the bank is in

He should pay off his cc bills and offer to pay the loan over a longer timescale

johnf2020

Trampas wrote: »

why should the bank take a hit. him not paying what he owes increases the hole the bank is in

He should pay off his cc bills and offer to pay the loan over a longer timescale

Basically he has been able to restructure all of his other debts but in this case the Bank(AIB) are unwilling to negotiate .They would not accept the offer he made per month.The said his statement of means was false.What is he suppose to do?

Jet Black

I'm guessing he is still employed. For credit cards once your able to make the minimum payment per month they don't really care about you clearing it. He will be decades trying to clear it with the minimum payment. So that will leave more monthly to pay the loan.

chris85

johnf2020 wrote: »

Basically he has been able to restructure all of his other debts but in this case the Bank(AIB) are unwilling to negotiate .They would not accept the offer he made per month.The said his statement of means was false.What is he suppose to do?

In what why did they say it is false? Is the offer fair in comparison to the credit cards.

matt70iu

johnf2020 wrote: »

A friend of mine is in a bit of a pickle. Owes quite a bit of money--2 credit cards, car loan and personal loan.He is in the ****s,basically.
Anyway like many people we has agree terms with all accept the Personal loan. THey will not accept his excuses,they will not accept his statement of means even though his mortgage company has. Anyway, a family member has agree to give him the money which will cover about 60% of the debt, in the hope that the bank would consider writing off the remainer----they wont do it. He has offered them €15000 off the €22000 that he owes.They still want the rest
Surely they should consider it as its the only way he will ever get rid of it. He is now coinsidering paying off the credit cards instead but as this was a bigger amount and telling them to go f**k. What should he do,
Surely the Bailed Out banks should give a little here?????

Sorry for your friend's trouble. I was in a similar position myself with a similar amount of money.

Your friend has done all the right things by sending in a statement of means etc. That's exactly what I did.

The bank told me they would not except my suggested monthly payments and were planning to take legal action. (All letters from them were on solicitors headed paper at this stage).

I decided to pay the payments they refused anyway. I owed the money, having said that, no bank will refuse money!

That was 3 years ago and they still haven't taken me to court. Pay what you can afford and at least then they can see you're making an honest effort.

With regard to getting a write off, wouldn't go down that route. The money is owed and should be paid if at all possible.

I would agree with other posters in that any lump sum available to you should be distributed evenly. I had no lump sum, so your friend is in a better position than me that way.

Just keep paying something and it will really go in your friends favor. Trying to get money off only erodes any good will that the bank may or may not be willing to offer.

Best of luck

Matt

johnf2020

matt70iu wrote: »

Sorry for your friend's trouble. I was in a similar position myself with a similar amount of money.

Your friend has done all the right things by sending in a statement of means etc. That's exactly what I did.

The bank told me they would not except my suggested monthly payments and were planning to take legal action. (All letters from them were on solicitors headed paper at this stage).

I decided to pay the payments they refused anyway. I owed the money, having said that, no bank will refuse money!

That was 3 years ago and they still haven't taken me to court. Pay what you can afford and at least then they can see you're making an honest effort.

With regard to getting a write off, wouldn't go down that route. The money is owed and should be paid if at all possible.

I would agree with other posters in that any lump sum available to you should be distributed evenly. I had no lump sum, so your friend is in a better position than me that way.

Just keep paying something and it will really go in your friends favor. Trying to get money off only erodes any good will that the bank may or may not be willing to offer.

Best of luck

Matt

Hi MATT,
I think I will recommend my friend to clear his credit cards and pay any excess that he has towards the loan, though he hasnt much extra anyway.Thanks

John

chris85

johnf2020 wrote: »

Hi MATT,
I think I will recommend my friend to clear his credit cards and pay any excess that he has towards the loan, though he hasnt much extra anyway.Thanks

John

That would be advisable. They would be at higher interest rate and would be best to get them cleared.

Hope your mate gets sorted in the end.

BuffyBot

Surely the Bailed Out banks should give a little here?????

Not unless you want to bail them out a little more for each and every person they "give" to.

The advice given is probably the only way to work it, given the information we have.