Juicifer
1-26-13, 10:09am
Hi,
I am the owner of a nice Line of Credit that has been sitting on my bank statement for years. My spouse and I applied for the LoC in 2008, we wanted to renovate an appartment and rent it out, we told the bank we estimated that $8000 would be enough and sure enough the officer gave us the credit. When we came home we could see it was already added to our online bank accounts.
I think we used it pretty sensible. We shopped and renovated the apartment, we started renting it out until in the same period of time a tenant left and I lost my job. Since we had a family to take care of we sometimes had no choice but taking money out of the LoC and as a result we racked up quite a debt.
We have been making payments but barely enough to pay back on the principal. This has been going on for a couple of years now, our monthly budget works out pretty good but making significant payments on the LoC, that is just not possible.
So, I'm going to put in a customer proposal hoping that the bank will honor this request. There is a trustee here in town that has send me the information. I don't feel proud that I'm doing this but at least it's not bankruptcy.
Has anyone done this before? There is no real guarantee that the bank is going to help is there? They could reject the proposal and because we still pay all our bills and have no other outstanding debt (and a good credit rating) I am afraid that is exactly what they might do. The bank would cash in years of interest if they want to.
Anyone any thoughts on this?
I am the owner of a nice Line of Credit that has been sitting on my bank statement for years. My spouse and I applied for the LoC in 2008, we wanted to renovate an appartment and rent it out, we told the bank we estimated that $8000 would be enough and sure enough the officer gave us the credit. When we came home we could see it was already added to our online bank accounts.
I think we used it pretty sensible. We shopped and renovated the apartment, we started renting it out until in the same period of time a tenant left and I lost my job. Since we had a family to take care of we sometimes had no choice but taking money out of the LoC and as a result we racked up quite a debt.
We have been making payments but barely enough to pay back on the principal. This has been going on for a couple of years now, our monthly budget works out pretty good but making significant payments on the LoC, that is just not possible.
So, I'm going to put in a customer proposal hoping that the bank will honor this request. There is a trustee here in town that has send me the information. I don't feel proud that I'm doing this but at least it's not bankruptcy.
Has anyone done this before? There is no real guarantee that the bank is going to help is there? They could reject the proposal and because we still pay all our bills and have no other outstanding debt (and a good credit rating) I am afraid that is exactly what they might do. The bank would cash in years of interest if they want to.
Anyone any thoughts on this?