M
Hi All
Firstly I hope I have this in the correct forum - if not please move it.
Last week my mother was asked to provide a guarantor for a €3,000 loan she had applied for in her local Credit Union. This despite having savings of €20,000. ...................All suggestions welcome
It's crazy to borrow €3K while one has €20K in readily accessible savings! Use the €3K now and replenish the savings by saving what would otherwise be going on repayments (including interest) going forward.Hi Demoivre
They were keeping the money aside as they feel they may need to replace some windows next year and are looking at changing their car. They planned to use the savings, they don't want to get into too much debt - hence the €3k loan application.
You mean a cheque for the balance of the account or for the loan?If you insist on withdrawing they write out a cheque there and then.
I don't understand this bit.They NEVER send it back to the credit committee who then REFUSE the loan.
Such illogical thinking should be challenged. Best way to do this is to point out the pros and significant cons of borrowing while having savings available. Crunching the numbers and showing them the bottom line may help.
Some would argue that such insurance cover is far from free and that the cost is footed by the members one way or another (e.g. through lower dividends/interest, higher interest rates on loans, higher costs of other products especially as long as CUs were coerced into not being able to shop around for insurance etc. by the ILCU etc.).1) Free-to-member Loan Insurance (whereby loans are written off on death or permanent disability:
2) Free-to-member Savings Insurance, whereby sums up to €12700 will be matched in the event of members death.
Some would argue that such insurance cover is far from free and that the cost is footed by the members one way or another (e.g. through lower dividends/interest, higher interest rates on loans, higher costs of other products especially as long as CUs were coerced into not being able to shop around for insurance etc. by the ILCU etc.).
Could be. I know that some or all CUs (like many other financial institutions) refuse to offer travel insurance cover above a certain age as my mother in her 70s discovered to her disgust a few years ago.I wonder if this is the rule applied to older members in other CUs or is it just in that particular one. It would be interesting to find out.
ahh no, leave a symbolic amount for the death benefit and for the right to speak at every AGM and give out.Am hoping to convince them to move the rest of their money ASAP
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