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Central Bank figures show €400m in household debt written down over fourth quarter of

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    #2
    Anyone
    Registered Users Posts: 3,376 ✭✭✭Anyone


    It doesn't say anywhere that the write offs were mortgage debt. My guess is they were non mortgage debt.


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    #3
    gaius c
    Registered Users Posts: 3,528 ✭✭✭gaius c


    Big difference between "write down" and "write off".


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    #4
    listermint
    Registered Users Posts: 33,834 ✭✭✭✭listermint


    By written down does this mean sold written down on the banks books and sold off to third party debt collection agencies ?


    Id imagine that is the case.


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    #5
    gaius c
    Registered Users Posts: 3,528 ✭✭✭gaius c


    listermint wrote: »
    By written down does this mean sold written down on the banks books and sold off to third party debt collection agencies ?


    Id imagine that is the case.

    Not necessarily. The loan could be written down and remain on their books.


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    #6
    antoobrien
    Registered Users Posts: 6,106 ✭✭✭antoobrien


    nino1 wrote: »
    Anyone know which banks are doing these deals and under what circumstances?
    I know of people who are in really bad situations with their mortgages who are not being offered a write-down, so if they are not then who is?


    All this means is that the value of the loans (assets to the banks) has been reduced to reflect the actual market value of a small portion of the loans that have been taken out by "households". It does not mean that there is any widespread write down/off of debts happening. €440m is a drop in the well vs the €174bn still owed by Irish households, with .

    The only time that somebody will be offered a write down/off of debt is when there is no prospect of getting the full book value of the loan back - this is not limited to mortgages but applies to all loans e.g. loans for cars, holidays, colleges as well credit cards and other types of lines of credit. Part of the new scheme being put forward by the central bank is for the unsecured loans e.g. credit card, car & credit union* loans to be written down (or if necessary written off entirely) - because they are such a small component of the overall debt.

    I disagree with forcing losses in credit unions because they were by and large (with some notable exceptions) fairly responsible in their lending practices. I think of the list of unsecured creditors, credit unions should be the last on the list to be hit and could be utilised to help manage the situation (e.g. partially write down credit card loans and transfer the rest to a credit union for them to manage).


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