Unsecured Debt-Credit Union Loan & Overdraft

IrishLad2012

I am looking for some advice here, I have current debts of €4000.

I owe €3000 to the Credit Union from a loan I got around 5 years ago(the loan was around €8000 but its down to €3000 now) and I had an overdraft facility in the Ulster Bank for €1000 which I am unable to pay.

I am a 3rd year college student, so the overdraft is from a student account. Currently, the Credit Union are ringing every other day looking for payment and the bank are sending letters every week.

What I want to do is meet with both the Bank and Credit Union and arrange a monthly payment that I can manage to pay back. I have a few questions before I do this:

1. Can I ask the credit union to freeze all interest on my a/c and only pay back the amount I borrowed(less interest)?
2. Should I consult a solicitor before signing any agreement?
3. My student account was originally charges free but now the back are charging my for an unpaid overdraft, is this right?

Any help would be greatly appreciated. I want to start paying some of this debt off as soon as possible. Any suggestions?

SJT1

IrishLad2012 wrote: »

I am looking for some advice here, I have current debts of €4000.

I owe €3000 to the Credit Union from a loan I got around 5 years ago(the loan was around €8000 but its down to €3000 now) and I had an overdraft facility in the Ulster Bank for €1000 which I am unable to pay.

I am a 3rd year college student, so the overdraft is from a student account. Currently, the Credit Union are ringing every other day looking for payment and the bank are sending letters every week.

What I want to do is meet with both the Bank and Credit Union and arrange a monthly payment that I can manage to pay back. I have a few questions before I do this:

1. Can I ask the credit union to freeze all interest on my a/c and only pay back the amount I borrowed(less interest)?
2. Should I consult a solicitor before signing any agreement?
3. My student account was originally charges free but now the back are charging my for an unpaid overdraft, is this right?

Any help would be greatly appreciated. I want to start paying some of this debt off as soon as possible. Any suggestions?

Talk to your credit union, they won't freeze the interest but will certainly discuss a repayment plan as its in their best interest to recover as much of this money as possible.

With regard to the overdraft, I don't what fees you're being charged but I presume you're getting charged interest on that also as that is a borrowing at the end of the day.

Are you still a student or working now?

Might be worth while if you can afford it to take out a loan for the €1k and start and clear that overdraft and start paying it back.

There's really no need for solicitors.

wmpdd3

Talk to MABS or go to their website and fill out the financial statement.

Your creditors will ask for this before they make any agreement. PM me if you cant find this.

This will show all you income and outgoings. Once they have this they have rates that they expect you to be able to pay back based on this. ie 35% of you income for unsecured creditors etc.

If possible deal in letters only, as you will need a paper trail for agreements made.

IrishLad2012

SJT1 wrote: »

Are you still a student or working now?

I am still a student, I am in 3rd year now, I plan to clear the loan completely when I graduate and start working but want to make a start now.