AIB Loan in Arrears and now with Recovery how bad are the consequences

[badw1thm0n3y]

Hello everyone,
I have had loans with AIB for about 3 years and never defaulted but this year I have somehow been having more expenses than income and have defaulted. My monthly payments is 565 and my arrears is 1300. It has gone up and down but i just haven't been able to clear it.
I had a call in October when my arrears was 430 saying by November ending i'd clear it but had personal life emergency and ended up defaulting the last 2 months.
Now i called the bank hoping to get a smaller payment plan on the arrears but was told they can't offer me one as it is now with recovery and so i should wait to hear from recovery and see if they will offer me a payment plan but i should note that this is now counted against me as a bad debt,

My question now is how bad is this situation? I'm hoping to get a payment plan of 200euro a month to clear the arrears but wanted to know how this will impact my borrowing if I am ready in 3yrs to buy a house.

 

[ClubMan]

It's difficult to offer useful advice with so little info.
You should probably do a Money Makeover post.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...

www.askaboutmoney.com

 

[ClubMan]

that this is now counted against me as a bad debt,

My question now is how bad is this situation? I'm hoping to get a payment plan of 200euro a month to clear the arrears but wanted to know how this will impact my borrowing if I am ready in 3yrs to buy a house.

If the missed repayments are logged on your credit record then it will probably negatively impact your ability to borrow.

Central Credit Register|Central Credit Register

The Central Credit Register (CCR) is being established by the Central Bank of Ireland, under the Credit Reporting Act 2013.

www.centralcreditregister.ie

Your credit history

Your credit history has information about your loans. Find out how to get your credit report from the Central Credit Register.

www.citizensinformation.ie

 

[llgon]

You will get useful advice here if you do a Money Makeover post as suggested above. But I think it would be of more benefit to you to contact MABS who will be able to help you in dealing with this debt and improving your financial situation generally.

Tackling debt

www.mabs.ie

No harm to do both though.