Credit Union do they do Settlements?

[Blueeyes123]

Hi,

I have been made redundant and as such, I have decided to clear all my debts and also my husbands as we are married so they to are my debts ( some people would disagree) but Im the stress head in our relationship, so its really for my sanity.

My question is, will the credit union offer a settlement figure, now I have already asked them, and they said no, but really Im looking to see has anyone done this before, as I know each CU differs, and this CU are pretty bad, but he has been with them over 12 yrs and has paid a sick amount of interest over that time.

Im not jumping on the band wagon because of the recession, the money I get may just about pay everything, I am thinking of offering €7000 for a debt of €8150 - they really should not have given him the loans all the time ( but I know its our problem and we spent the money) as he has just €350 in his savings. He doesnt really care about owing people money, But I do.

Thanks in advance.

Blueeyes

 

[goingforgold]

you will need to give us more information. Might be worth filling out the money makeover form. Why would CU settle for a lesser amount than what is owed to them? Especially as you seem to be in a position to clear all your loans. Do you have a mortgage?

 

[Blueeyes123]

Hi,

If I pay off all the loans, then I cant afford to put oil in the tank and tax the car, the car also needs a service badly.

The only reason I would be suggesting it is because of the Amount of interest he has paid in the last 12 years.

He is on a very high rate, looking at the statement it looks like a lot, some weeks 50% went on interest. & Yes we have a morgage - I have morgage protection so this wont kick in for 60 days so I will need to keep 2 months morgage repayment also.


Thanks,
Blueeyes

 

[CUJimmy]

the reason Credit unions don't accept settlements is as far as i can remember down to the fact that their interest is calculated on a daily/weekly basis whereas other financials will calculate yearly and pop the full amount of interest on top of your principal at the start of the year. They are therefore in a position to forego some interest when you look for a settlement, they are still getting their principal back which is exactly what the cu is doing

 

[TLC]

Would you try a reduced re-payment amount? Problem is if you do not re-pay in full this would probably negate your ability to have loans in the future - no good burning your bridges.