Loan in Ireland, moving away

Discussion in 'Mortgage arrears & negative equity case studies' started by Alex012, 16 Jan 2019.

  1. Alex012

    Alex012 New Member

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    A few months ago I have taken out a loan of 15k. Some things went horribly wrong in the meantime, I've lost all my savings and right now I'm without any sort of income, with no perspective and I'm seriously thinking about leaving Ireland and move to another EU country, where I would have an income and a house that I inherited (so won't need to pay a high rent as I do here). The choice isn't too difficult since my options are either stay here and probably become homeless, or move away and be fine.
    The problem is, I won't be making no where near what I was making here, so there's a very high chance I won't be able to repay the amount owed. I've already sold my car and I'm using the money to pay off some of the debt, but I still owe about 10 to 12k.
    I've been asking for advice from other sources and I'm left with even more questions, but usually I'm served with two options:
    -not pay anymore, move away and don't disclose the country I'm going to (not a nice thing to do and there might be a chance where they would still find me, since I'll be in a EU country)
    -sell everything, borrow or even sell the house abroad, pay, and start over - the decent thing to do, but it would be something I would never be able to recover from in years from now.

    I have spoken with bank representatives, trying to find a way to get the rates go down to a more manageable amount, but they aren't interested in my arguments.

    Any thoughts/advice on this?

    Thanks
     
  2. Brendan Burgess

    Brendan Burgess Founder

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    What are the monthly repayments?

    If you don't have any rent in the other country could you not afford your repayments?

    Brendan
     
  3. Alex012

    Alex012 New Member

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    Monthly payments are just over 450. Unfortunately, my income there will be under 1k (minimum wage is under 500). Paying over half of my income won't leave me with enough money to afford utility bills+food+fuel+other taxes. We're talking a poorer country where salaries are a lot lower. This being the reason why I asked them if we could switch to another payment plan, I could probably pay 100-150/month, but 450 is way out of my reach. Unfortunately they aren't interested.
     
  4. RETIRED2017

    RETIRED2017 Frequent Poster

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    Seeing the loan was only taken out a few months ago is it possible to sell off what ever you spent 15000E on and repay as much as possible before leaving Ireland,
     
  5. Alex012

    Alex012 New Member

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    The money from the loan, plus some savings are gone. A couple of years ago I have taken out another loan to buy a vintage car. I've repaid that loan early using part of this current loan, I just didn't want too many payments to stack up. The rest of the money went to a company that was supposed to restore the car, this company disappeared, the company's owner is now nowhere to be found. The car itself was sold, but considering I had to sell a "non-running project car" fast, I didn't even get what I paid for it. To top things off, the company I worked for went belly-up, leaving me with a very niche qualification (the kind that it might take months/years to find another job). At the moment I can make another rent, a couple more payments and maybe afford a flight after food/utilities are paid.
     
  6. elcato

    elcato Moderator

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    Answer 1 in your original post. If you ever win the lotto you can always contact them again. The bank can't get blood from a stone so chasing you will be fruitless.
     
  7. Cervelo

    Cervelo Frequent Poster

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    If you can't/won't do the decent thing then go on the run :rolleyes:
     
  8. RETIRED2017

    RETIRED2017 Frequent Poster

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    I worked in an Engineering company which make ware parts for machinery,

    In a recession our orders go up because Companies refurbish rather than buy new machinery,

    In the last recession we took on lots of people who had niche qualifications or over qualified for the jobs on offer it did not stop us from offering them work once the could do the job and kept us up to date on progress in finding work more suited to them,
     
  9. Alex012

    Alex012 New Member

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    I know what you're saying, it's what several people have advised me to do. But in my head I know it's just not right. I'd always look over my shoulder. And it's within the EU, what's to stop them from taking me to court there and make me homeless? Thanks for the advice though.

    How does this ^ help?

    Sound Engineer here. The problem with jobs that I'm not qualified for is the pay itself. After rent is paid, there won't be enough left to pay utilities/food/fuel and pay the bank. The rent for a place that is not only in driving distance to any kind of work, but also suits a family with a small child and a dog is very dear these days, and welfare is something that I just won't do.
    Thanks for trying to help though
     
  10. elcato

    elcato Moderator

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    We all aspire to work at a job we love and get paid well for it but, and this comes as a shock to a lot of people, we also have to probably work at something else in order to pay the bills until we can get to that dream job.
     
  11. so-crates

    so-crates Frequent Poster

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    There is another option, though it is not necessarily one you would want to do. I am going to guess it was a loan repayable over 3 years? And I am going to hazard a guess that it is an unsecured loan (you didn't give any security, for example a house, to obtain the loan). This changes the picture somewhat as it means that the bank has fewer options in terms of forcing you to repay. They cannot simply force you out of your house.

    Rather than beggaring yourself by paying out half your income or basically walking away from your debt and hiding abroad you could go in between and pay what you say can afford, that way your conscience would at least be clear.

    It wouldn't be easy though and they would of course try to chase you for the arrears. However, you would be making a regular repayment which is more than the interest cost and it would be affordable for you.
     
  12. RETIRED2017

    RETIRED2017 Frequent Poster

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    What is the interest rate you are paying on loan ,Alex12 ,
     
  13. Setanta12

    Setanta12 Frequent Poster

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    No shame in applying for social welfare. Hold your head high and go claim. It will give some breathing space while you make the harder decisions .. ..