Bank Loan I cannot repay??

Cardboardbox

Hello,

I am hoping for some advice if anyone else has been in a similar situation please.

I have a bank loan with BOI. I can no longer meet the repayments I am currently making as my partner has lost their job, and I am unemployed.

Can anyone tell me are the bank likely to accept a reduction in my payments? I cannot risk a judgement against me as we hope to emigrate. I currently pay 180 per month, but I can now only afford to pay around 25 euro a month.

Thanks.

chris85

You need to engage with the bank and see if they would accept the repayment, they may consider it in the short term. It really depends on a number of factors such as repayment capacity, balance on loan, interest payments. Engage with them as early as possible and see if they can assist with your situation.

Also a judgment wont effect your ability to emigrate. If you are concerned it may go against a visa, it wont, only criminal convictions will have impact on a visa application elsewhere.

wmpdd3

Go to the MABS website, download the financial statement and fill this out, its the information the bank will be looking for. This will illistate if you can even afford the €25 per month.

I would not mention emergrating as the bank could see you as a flight risk.

tony81

Cardboardbox wrote: »

Can anyone tell me are the bank likely to accept a reduction in my payments?

You didn't give enough info in your post to answer this question.

However, yes, banks will usually consider restructuring loans after reviewing your income/expenditure/savings.

Cardboardbox

Thanks for the replies

_Kaiser_

I was laid off late in 2009 and out of work for a year. Contrary to popular belief in this country though, your debts and bills dont disappear with your income - nor can you just say "feck it, I'll pay ye back when I get a new job!"

So with that in mind I rang my bank on day 1 of my unemployment and explained the situation and gave them a realistic figure I could afford to repay on my loan. They were actually very surprised/shocked at my proactive approach as "most people don't come near us till we start sending letters".

Anyway, the new amount was agreed and every few months I'd post them in another letter saying that unfortunately not much had changed and so could we extend the reduced payments which they agreed to. I was genuinely looking for a new job in the interim and had kept copies of applications/rejections and any correspondence to/from the bank just in case they might be needed (but I was never asked for proof of my situation as it turned out)

Anyway, just under a year later I FINALLY found a new job and even though it paid less than my old one, involved a 1000 km weekly commute (with the costs and tolls associated with that), I again proactively rang them, updated them and offered to pay more - not as much as the original amount, but a fair increase based on my increased means. Again they agreed to this.

This year I got a new job in another part of the company which came with a slight pay raise so I rang the bank again to up the payments slightly, but as it turned out they were willing to restructure the loan and my credit card bill (run up during the year I was out of work) into one new loan with reduced monthly payments over a slightly longer term.. worked for me!

My point though is I think the fact I was proactive and upfront with them at every step helped, as well as having all my banking with them since 1995... but if they HAD decided to play hardball I'd have let them take me to court and let the judge decide if I'd been trying to honestly pay back what I owe or not - which I've always said I will as I was raised that you pay your debts, not look for "bailouts" or "forgiveness" when it all goes south.

Anyway that's my experience - bottom line, open the lines of communication with your bank, explain the situation, be fair and honest about what you can repay and keep records of all letters and names of people you speak to.

Hope this helps

cookie1977

Kaiser2000 wrote: »

I was laid off late in 2009 and out of work for a year. Contrary to popular belief in this country though, your debts and bills dont disappear with your income - nor can you just say "feck it, I'll pay ye back when I get a new job!"

So with that in mind I rang my bank on day 1 of my unemployment and explained the situation and gave them a realistic figure I could afford to repay on my loan. They were actually very surprised/shocked at my proactive approach as "most people don't come near us till we start sending letters".

Anyway, the new amount was agreed and every few months I'd post them in another letter saying that unfortunately not much had changed and so could we extend the reduced payments which they agreed to. I was genuinely looking for a new job in the interim and had kept copies of applications/rejections and any correspondence to/from the bank just in case they might be needed (but I was never asked for proof of my situation as it turned out)

Anyway, just under a year later I FINALLY found a new job and even though it paid less than my old one, involved a 1000 km weekly commute (with the costs and tolls associated with that), I again proactively rang them, updated them and offered to pay more - not as much as the original amount, but a fair increase based on my increased means. Again they agreed to this.

This year I got a new job in another part of the company which came with a slight pay raise so I rang the bank again to up the payments slightly, but as it turned out they were willing to restructure the loan and my credit card bill (run up during the year I was out of work) into one new loan with reduced monthly payments over a slightly longer term.. worked for me!

My point though is I think the fact I was proactive and upfront with them at every step helped, as well as having all my banking with them since 1995... but if they HAD decided to play hardball I'd have let them take me to court and let the judge decide if I'd been trying to honestly pay back what I owe or not - which I've always said I will as I was raised that you pay your debts, not look for "bailouts" or "forgiveness" when it all goes south.

Anyway that's my experience - bottom line, open the lines of communication with your bank, explain the situation, be fair and honest about what you can repay and keep records of all letters and names of people you speak to.

Hope this helps

Proactive is the only way to be when dealing with debt or potential arrears! Good post!!

wmpdd3

Pro-active is great, depends on the company.


I now earn 1/4 of what I used to I assigned my wages after basic out goings to my debtors. All fine except Bank Of Scotland Irelland.

I agreed a payment with a lady over the phone, I wrote 2 days later asking for written confirmation of my new repayments. No answer, then they started threatening letters.

I photocopied the letters and sent them with the girls name and the date and time, no answer.

They call me, I tell them of my arrangement and remind them I have kept to this arrangement for 14 months now, but they say they knew nothing. Good thing I'll have them paid off in under a year, I haven't time to hold their hand while I pay them off.

cookie1977

wmpdd3 wrote: »

Pro-active is great, depends on the company.


I now earn 1/4 of what I used to I assigned my wages after basic out goings to my debtors. All fine except Bank Of Scotland Irelland.

I agreed a payment with a lady over the phone, I wrote 2 days later asking for written confirmation of my new repayments. No answer, then they started threatening letters.

I photocopied the letters and sent them with the girls name and the date and time, no answer.

They call me, I tell them of my arrangement and remind them I have kept to this arrangement for 14 months now, but they say they knew nothing. Good thing I'll have them paid off in under a year, I haven't time to hold their hand while I pay them off.

that is true (bosi are a special case, they do not want to be here any more) but by being pro active if god forbid it ended up in court, a judge would see that you were not avoiding your debt in any way.

narfsnonsense

Im pretty sure you can as I stopped my loan payments of about 160 for 6 months with agreement from the bank. It'll cost ya though. Cost me about 230 euro which I was disgusted by. I knew there would be some penalty but that seems like a crazy amount.

Sir Oxman

Kaiser2000 wrote: »

I was laid off late in 2009 and out of work for a year. Contrary to popular belief in this country though, your debts and bills dont disappear with your income - nor can you just say "feck it, I'll pay ye back when I get a new job!"

So with that in mind I rang my bank on day 1 of my unemployment and explained the situation and gave them a realistic figure I could afford to repay on my loan. They were actually very surprised/shocked at my proactive approach as "most people don't come near us till we start sending letters".

Anyway, the new amount was agreed and every few months I'd post them in another letter saying that unfortunately not much had changed and so could we extend the reduced payments which they agreed to. I was genuinely looking for a new job in the interim and had kept copies of applications/rejections and any correspondence to/from the bank just in case they might be needed (but I was never asked for proof of my situation as it turned out)

Anyway, just under a year later I FINALLY found a new job and even though it paid less than my old one, involved a 1000 km weekly commute (with the costs and tolls associated with that), I again proactively rang them, updated them and offered to pay more - not as much as the original amount, but a fair increase based on my increased means. Again they agreed to this.

This year I got a new job in another part of the company which came with a slight pay raise so I rang the bank again to up the payments slightly, but as it turned out they were willing to restructure the loan and my credit card bill (run up during the year I was out of work) into one new loan with reduced monthly payments over a slightly longer term.. worked for me!

My point though is I think the fact I was proactive and upfront with them at every step helped, as well as having all my banking with them since 1995... but if they HAD decided to play hardball I'd have let them take me to court and let the judge decide if I'd been trying to honestly pay back what I owe or not - which I've always said I will as I was raised that you pay your debts, not look for "bailouts" or "forgiveness" when it all goes south.

Anyway that's my experience - bottom line, open the lines of communication with your bank, explain the situation, be fair and honest about what you can repay and keep records of all letters and names of people you speak to.

Hope this helps

Totally agree.
This approach also takes the immense pressure off peoples shoulders when in debt, take ownership of the problem and feel the weight off your mind, body and soul lighten considerably.