Help with Credit Union loan

[Edie75]

Hi all,
I have a loan of a little over 9k with the credit union, i pay 100 to it per week and i pay 110 to the bills per week & but shopping mostly in dunnes?! & centras?!, i pay no pension contributions and i earn 600 per week. The thing is the rest i spend on myself. i really want to get the c.u. loan paid off though and wonder should i switch to a bank. i cud prob pay more if i focused on it. I wonder how i can get it shifter quickly. i have no other bills as the man pays the rest! Lucky I know, but im bad with money & this loan was previously 20k so im doing well!! no credit cards or any other loans at all.. Any ideas at all suggested thanks edie

 

[eileen alana]

Hi all,
i cud prob pay more if i focused on it.

I guess you could, you earn 600 euro and spend 210 on bills, rather than spending nearly 400 euro on yourself every week wouldn't it make financial sense to start paying big chunks off the the loan.

 

[oldtimer]

Have you shares in the CU? If so, why not take out the shares and use against the loan? You are probably paying around 9% on the loan and getting a meagre 2-3% on shares.

 

[Newbie!]

Have you shares in the CU? If so, why not take out the shares and use against the loan? You are probably paying around 9% on the loan and getting a meagre 2-3% on shares.

Whilst I know that avery credit union can have a different policy regarding loans, my cu will not allow you to touch your shares whilst you have a loan with them. Essentially, the shares are frozen until the remainder of your loan equals the shares, then you can use the shares to clear the loan. This way, I guess they collect more interest as the capital amount is higher?

 

[ClubMan]

Hi all,
I have a loan of a little over 9k with the credit union, i pay 100 to it per week and i pay 110 to the bills per week & but shopping mostly in dunnes?! & centras?!, i pay no pension contributions and i earn 600 per week. The thing is the rest i spend on myself. i really want to get the c.u. loan paid off though and wonder should i switch to a bank.

Why not cut back on or stop this?

 

[deedee80]

Is the 600 euro per week your take home pay? Is the 110 per week towards bills inclusive of food?

If all of the above is correct then you have 490 left over per week. I would imagine you could pay 300 per week off the loan if you wanted as 190 euro is more than enough money to live on per week if your bills/food are already covered. If you payed 300 per week as opposed to 100 per week you would have the loan paid off in less than 8 months. If you continue to pay 100 per week it will take you just under 2 years to pay off. It really should be as simple as that.