My options for dealing with debt

Discussion in 'Mortgage arrears & negative equity case studies' started by Liam Geariod, Jan 24, 2017.

  1. Liam Geariod

    Liam Geariod New Member

    Hi. I'm hoping for some advice on my options going forward to tackle my debt.

    Some background:
    I got four different loans over a four year period during the years I was in college to support myself (2019-2013). I was working also so was able to keep up the payments.
    However during my final year I needed to give up work and I had some savings to I thought I could manage until I finish college and get a job.
    I eventually started to miss payments, 9 payments for all loans and AIB sent the loans to Intrum Justitia.
    The total Intrum require from me is 26,500 which I think includes the interest AIB added. Neither Intrum or AIB will give me clear answers.
    I started paying weekly in Jan 2015 and have 10,500 paid off and have 16,000 remaining.

    I have no problem continuing the payments and eventually closing the debt with Intrum however it's ICB report I worry about.
    Apparently the bad debts will appear on this until I have it cleared and even two years after the debt is cleared. That could be 5 years from now.

    I am wondering if I should borrow the money to close the debt from a family member and this would initiate the 2 year period on ICB so I could get that cleared as soon as possible.

    After talking about this option with my family member, I started wondering would Intrum offer a write off if I was to give a lump sum to clear the debt.

    All opinions would be greatly appreciated.
  2. so-crates

    so-crates Frequent Poster

    If you can access a lump sum it would be very sensible to offer them a deal, a lower amount in full and final settlement. The worst they can do is refuse to take it.
  3. PaddyBloggit

    PaddyBloggit Frequent Poster

    Not if they see you can afford to pay it off over time.

    Have you a Credit Union account? Perhaps a Credit Union loan might be an option if you do.
  4. vandriver

    vandriver Frequent Poster

    Liam,the loans stay on your ICB report for 5 years after the loan is closed .If in those 5 years you want to borrow money,the lender will see that you settled for less than the full amount,rather than paid in full.I would suppose that you would be turned down.
  5. Bronte

    Bronte Frequent Poster

    Before even beginning to suggest what you do can we find out exactly what is your situation. All loans, interest rate, repayments etc. In addition your income and circumstances. The template for this is on the money makeover thread. But it's basically all your income and outgoings.

    It is worrying that you still don't have a handle on your debt in not knowing what it is you are actually paying or have paid (I think includes the interest being a case in point)

    Deals can be negotiated. But if you're a good payer, they won't do deals. Why would they.