Will a bank negotiate loan repayments?

A

ailbhe

Registered User
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481
Hi all.
I got a loan last year of €15000 over 5 years. Repayments are 321.01 per month.
At the time I could afford that easily. But my circumstances have changed and I am now a single parent and my wage just about covers my expenses month to month.

I have cut back as much as possible but I find myself struggling more and more. I am wary of building up credit card debt or an overdraft etc and would prefer to manage on what I earn.

My main query is (and I know it would cost me more in the long run) can i agree with the bank to lengthen the term of my loan and therefore reduce the monthly repayments?

Will they entertain the idea at all?
I am with BOI and have been for over 7 years and have had numerous loans over the years, credit card is with them, overdraft etc. I have never missed a payment on any of them and have a very good credit rating.

Even if I could reduce it to €200 per month it would take some of the pressure off.

Is it even worth asking? Do they do that?
 
They said no. I topped up the loan a couple of months ago and have to make at least 4 repayments on the "new" loan before I can amend it.
So i'm stuck for another couple of months.
 
At least you know you can in a couple of months, so you can take some comfort from that.
 
ailbhe said:
.. I topped up the loan a couple of months ago and have to make at least 4 repayments on the "new" loan before I can amend it.
Click to expand...

.. which you omitted to mention in your original post. You went for and received top-up funds 4 months ago and now you're going back for a further top-up. That is a different situation to that described in your original post. How do they know that you won't be back for a third top-up in another while ?

Would you lend to you on that basis ?
 
I didn't realise the top up mattered to be honest. As far as I was concerned it was the same loan, I didn't realise a top up meant a new loan.
And i amn't looking to top it up, simply to reduce my monthly payments by increasing the term from 5 years.

I had 2 loans with them and paid of a 25k loan last year which i had for 4 years. I had a smaller loan before that for 3 years which was paid off in full also without missing payments. The other loan was for 12k (car loan) and I had been paying it back for a year when I topped it up by 3k to pay off my credit card. As I said in my OP at the time I was perfectly able to pay it off but as my circumstances have changed I can pay it but it is tight.

I wasn't complaining that they won't do it, simply stating what I had found out.
No need to suggest that I am a bad credit risk when you have none of my details. they were quite happy to give me the top up a couple of months ago so i can hardly be that bad.
i am simply trying to prevent myself falling into debt.
 
It was not my intention to suggest/infer something about your credit history. If offence was taken, I apologise.

The last top-up was, in effect, a new loan - new principal, new repayment schedule, new loan. Up to that point, the bank had no reason to question your repayment capacity. When you went for a top-up, it was, I assume, in light of a re-assessment of your financial requirements. Now , 4 months later, you have had a further re-assessment which may be as reliable as the one from 4 months ago.

Your credit rating does not remain static. It, like your own circumstances, can change.
 
Sorry,I'm just a bit sensitive about my financial state at the moment :eek:

I am loathe to start building up stupid debt but that 320 coming out right before I get paid always pushes me into the red.

For now i'll sit down, do a budget and stick to it and maybe I won't need to restructure when i am in a position to do so. A nice fat payrise would help but the boss is a firm believer in the recession (a likely excuse!).
 
Hi Ailbhe,

I amy be telling you something that you already know, but have you looked at the money makeover section here in AAM. You might get useful advice there, by reading the current threads or posting your own details.
 
huskerdu said:
Hi Ailbhe,

I amy be telling you something that you already know, but have you looked at the money makeover section here in AAM. You might get useful advice there, by reading the current threads or posting your own details.
Click to expand...


Thanks, I've had a look and am starting a spending diary. I pretty much know where my money goes for the most part and I have set a weekly budget for myself now which I have to start sticking to religiously :D
 
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