Go Back   Askaboutmoney.com > General Financial Issues > Credit Union issues

Reply
 
Thread Tools
  #1  
Old 04-02-2012, 11:41 AM
1939
 
Posts: n/a
Default CU €8.3k outstanding loan, €3,4k shares, €350/mth repayment: use €2.9k bank savings?

Hi guys,

Need some advice on money matters

I have a loan in the credit union that I am looking to pay off in the soonest possible amount of time.

The loan is now at €8300
Shares are at €3359

I pay €350 per month on this loan, that’s all I can afford. After interest, I’m paying off about 280 per month of the actual loan.

I have €2900 in the bank saved and will use this but I don’t know how or where to put this money in the best way to pay off the loan? Shares or payment of loan?

I understand and hope! that when shares = loan left that the CU will neutralize it all and I wont have any more to pay

Any advice really appreciated
Reply With Quote
  #2  
Old 04-02-2012, 11:57 AM
ajapale ajapale is offline
 
Posts: 7,647
Default

Hi 1939 and welcome to AAM!

Ive expanded your title a little to more fully reflect and summarise your question. Let me know if this is ok.

What interest are you earning on your bank savings?

Do you place any value on CU membership over and above pure financial value? Personally Im prepared to continue with a small CU savings account even if I can get a better return else where or could borrow cheaper else where. I stick with the CU because of its social, community, mutual, small scale ethos and perhaps in fear that other sources of credit might dry up in the years ahead.

aj
moderator
Reply With Quote
  #3  
Old 04-02-2012, 12:24 PM
1939
 
Posts: n/a
Default

Yes that’s fine about the title thanks AJ.

I fully intend to stay a member after this loan is paid off. Its just my contributions wont be as bulky as they are now while trying to pay off this loan.

I’m not earning much interest at all with bank savings, it’s not a savings account or anything. I just accumulated the money over time.

I was told by the credit union that they would set my shares against my loan when they are both equal to each other, but I’ve heard of it being difficult of late to do this... so that’s why I have held the €2900 in my bank account until I know what to do with it!
Reply With Quote
  #4  
Old 04-02-2012, 03:08 PM
ontour ontour is offline
Frequent Poster
 
Posts: 1,039
Default

Decide how much of an accessible 'rainy day' fund you need and put that in an accessible savings account, whichever one best suits your needs, check out the Deposits Best Buy thread. If you have money left over from your bank account, pay that off the credit union loan. Talk to the loan officer / manager of the credit union and ask how much of the savings you can offset against the loan. You are probably getting very little dividend so any amount you can move from the CU shares to the loan will accelerate your repayment.
Reply With Quote
  #5  
Old 04-02-2012, 10:36 PM
Slim Slim is offline
Frequent Poster
 
Posts: 1,617
Default

Hi 1939
You can immediately reduce your loan by €1200 from your shares by writing to the credit union and asking them to do this. You could then reduce the balance by your bank savings. You will have halved your loan at this stage. Your repayment could be reduced or you could keep the same repayment going. Having a 'rainy day' fund may affect your decision here.
Reply With Quote
  #6  
Old 24-07-2012, 10:51 AM
Boomtobust Boomtobust is offline
Frequent Poster
 
Posts: 164
Default

Quote:
Originally Posted by Slim View Post
Hi 1939
You can immediately reduce your loan by €1200 from your shares by writing to the credit union and asking them to do this. You could then reduce the balance by your bank savings. You will have halved your loan at this stage. Your repayment could be reduced or you could keep the same repayment going. Having a 'rainy day' fund may affect your decision here.
Most CU's will refuse to put shares against the loan balance. We tried asking in the past and got and flat refusal.
Reply With Quote
  #7  
Old 24-07-2012, 11:03 AM
Mrs Vimes Mrs Vimes is offline
Frequent Poster
 
Location: East Cork
Posts: 680
Default

There is another thread on here which states that they have to and also gives details of where that is in legislation.
Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT +1. The time now is 05:48 PM.