Refused loan - help

thecoffeepod said:
"Even though he was advised to never contact them."
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January25 said:
The citizens information gives the impression that the previous 5 years count for credit rating but obviously that’s incorrect.
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It's not obviously incorrect as @BlackandBlue explains above.

Refused loan - help

A friend has had an application for CU loan refused for 70,000. He has a public sector job earning 40,000. Around 10,000 on deposit in the credit union. Around 20 years ago he defaulted on a bank loan for around 25K. It was to set up a business. He didn’t/couldnt pay it back. Could this be the...
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This debt is unlikely to magically disappear unless the lender stops reporting it to the CCR. And they haven't done that for 20 years so far.
 
Brendan Burgess said:
I understand that if you are trying to avail of a debt becoming statute barred , the time begins again every time you acknowledge the debt. So it's possible a solicitor has told him this.
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This seems reasonable of the solicitor, if that is the objective of his client.

However, the solicitor should be careful to advise that it only prevents collection, it doesn't clear the debt.

It sounds like the solicitor just assumed that he wanted to avoid paying the debt and didn't care about loans in the future.
 
Agree. Avoidance doesn’t clear the debt. But now they will need a loan for a mortgage. So the only option is to try for a settlement. Do people just approach the bank and go it alone or would a solicitor assist ?
 
January25 said:
The reason stated by the CU was the CCR report.
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Would've been helpful to clarify that before now. :confused:
He should still get his CCR report to clarify what's on it.
Maybe the 20 year old loan isn't the only outstanding issue that needs to be dealt with?
He probably won't be able to borrow for a property until his CCR is clear which will presumably be 5 years at the earliest assuming that he clears/settles any outstanding loans.
 
January25 said:
A friend has had an application for CU loan refused for 70,000. He has a public sector job earning 40,000. Around 10,000 on deposit in the credit union.
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We are getting the story second hand as it's a friend of his.

He might have all the money for a house except the €70k.

Or he might be so bad with money that he thinks that while he owes €25k, he might be able to get a loan/mortgage with a €10k deposit.
 
He has an inheritance of around 90k. Plus the 10 k so around 100k total. He is 53. No kids. What would be the best strategy to owning an apartment or small house ?
 
Hi January25.
Get your friend to look at some Dame Ramsey videos.
He would advocate never borrowing.
There are different ways of getting to the place where you want to be without borrowing.
I offer this advice as someone who borrowed left right and centre at a point in my life.
 
RichInSpirit said:
He would advocate never borrowing.
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Sounds like a ridiculous blanket statement to me.
It's perfectly reasonable to borrow in certain circumstances - an obvious one being at relatively low interest rates to buy a home.
The issue in this thread is that the person in question needs to deal with historical debt first.
They'll likely need to do that even if they don't borrow for a home.
 
To clarify Dave Ramsey (and aside from the religious stuff which I can live without) his advice is solid.

He refers to not borrowing for consumer debt - cars, holidays, clothing etc., that doesn't apply to mortgages for housing.
 
January25 said:
100k total. He is 53. No kids. What would be the best strategy
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Not entirely sure there is one.

Option 1 - clear the debt & wait five years for CCR to be clean - by then he's 58 & likely will only qualify for very short mortgage term, if any.

Option 2 - save like a demon over the next two years & see what he can buy for cash. It'll be a doer-upper & not in an urban area & he'll have to be prepared to undertake a lot of the work.

Option 3 - family loan?
 
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