What Can I do to Eliminate Credit Union Debt Without Judgments
My husband lost his job and is unable to return due to his health. I have tried to work with the credit card companies and have gotten satisfactory solutions to most of them. One of the debts is from a credit union that will not settle and wants almost all of the monthly payment so as not to put a judgement on our house. I am at my wits end with them and I do not know what else to do. Help.
What can I do to eliminate this debt without judgements
—Joyce
Short answer
Settling with a credit union is less predictable than with a bank. Larger regional and national credit unions often make fair concessions, while smaller local ones tend to place the account straight with local counsel who already have authority to sue.
Key points on this page
- Debt settlement with credit unions can be iffy business compared with the larger banks
- Larger regional and national credit unions will sometimes offer fair less than full balance concessions and reduced monthly payment options
- Smaller local credit unions tend instead to place the unpaid debt with local counsel they have an arrangement with, which includes authorization to sue
- Credit unions often have cross collateral clauses in many of their loan products, which can make negotiating a reduced balance difficult
- Whether you hold other loan products or insurance with the same credit union affects what can be negotiated
Debt settlement with credit unions can be iffy business. Larger regional and national credit unions will sometimes offer less than full balance payment concessions and reduced monthly payment plan options that are fair. Smaller, more local credit unions, may not. The tendency with small local credit unions is to simply place the unpaid debt with local counsel they have an arrangement with (which includes authorization to sue) in their effort to collect.
Credit Unions often have cross collateral clauses in many of their loan products which can make negotiating a reduced balance difficult.
I have some questions for you that, once answered, will allow me to comment further:
Who is the credit union?
How late in payment are you?
Do you have other loan products/insurance with them?
What is you current financial ability to address this account? Do you have access to a lump sum of cash you can use to fund a decent offer to settle? Can you afford to re-age the account if payments were smaller?
Post your answers to the above questions in a comment reply below and I can offer more detailed feedback.
Anyone dealing with credit union accounts is welcome to post questions and concerns below.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
Public service credit union
I’m on time but in a debt consolidation program
Service Credit Union
Personal loan of $47,000
Loan is a combined sum of two separate credit cards. I called asking if they would combine the two balances and put me on a payment plan. They combined the two balances switched it to a personal loan, and raised my interest rate. In the end this did not help. I am now five months late on payments.
I do not have any other products with them.
I will have access to lump sum of cash in about two years from now.
I could make payments if the amount was lower.
What is the interest rate on the loan?
13.99%
One way to get the monthly payments lower is to see if they have a hardship payment plan. You would pay the full balance back, but at a reduced interest rate, and often over 5 years.
Settling for less, and getting those 2 years to pay is sometimes an option. If your monthly cash flow is dependable this is likely going to make the most sense.
I encourage you to schedule a phone call with me to look into how this could work for you here: https://calendly.com/debtbytes/15min
I have a $10,000 credit card with Golden1 Credit Union in California. My wife & I recently hit hard times with hours lost at work and unexpected work closures due to the pandemic. We have made our mortgage & car payments the priority. We are going on two months behind on credit cards. We signed up with National Debt Relief last month. I’m embarrassed to admit it, but together my wife & I enrolled $56,000 worth of credit card debt with them. We are setup to save $400 each month in an account with NDR for settlements. My concern is that Golden1 Credit Union could deny to work with National Debt Relief to reach a settlement. What should I expect & how can I be prepared? Any recommendations that you can offer?
I suggest you schedule a call with me here: https://calendly.com/debtbytes/15min
I can help you think through strategies with your credit union on that call. I can also help you look for an alternative to the plan you have right now.
If National Debt Relief settles your debt total at fifty percent, and at the pace of four hundred dollars a month, you would take seventy months to settle. That likely does not include their fees. This is far too long for a settlement plan if you want it to be successful without getting sued.
I was with a Debt settlement company they took money without any results the Lawyer never call so this went on for 7 months. I got a payment plan with other creditors, but the Va Credit Union I owe them it was 34000 for loan and credit union and they have file warrant in Debt with court date. I have talk to them and setup payments but still want take the warrant in debt back. If I offer 11 to 12000 and 900 monthly payment u think they take warrant Debt off. When I made payment arrangements they said they still asking for judgement I will pay them just don’t want judgement and lien on house are take my vehicles and sale for payment. What are my option to stop the judgement if dont have all money to pay in full? Should I go court and let judge know and he may not do judgment since I’m paying 11000 and on a payment plan…I haven’t offer the 11000 yet just payment plan.
Getting a payment plan set up when you are being sued is pretty common. You can schedule a call with me to talk strategy about reaching your goal here: https://calendly.com/debtbytes/15min
I live in Houston, Texas. I have contacted Helpsisher (non profit organiztion for seniors) and they sent a letter to the credit’s attorney regarding I have a debt of $5,765 with the Houston Highway Credit Union in Houston Tx. I am 68 years old. I received an unsecure loan from the credit Union in Sept of 2014 and I paid on the loan up til Oct of 2020. I am retired but I use to have a parttime job until Oct of 2020. Due to health reason I no longer work. I get a pension from the State of Texas and Social security. I go to court Monday Dec 6th regarding the judgement however the attorney served me with a Writ of Excecution and demanded a payment of $8,907.52 be paid to the Harris county Constable Sherman Eagleton; My court date is this Monday, December 6th, 2021. What personal property can they take. My home is homestead; They sent me a TurnOver after judgement request saying I have to pay a $100 bond. I was told by Helps none profit to ignore because they cannot not take anything for an unsecure loan and because income is protected. I do owe the money but I cannot pay and I don’t understand why the attorney keeps adding other fees and request when I completed the Writ of Discovery. [deleted poster email address]
It sounds like they have a judgment and are trying to enforce it.
Even if your assets and income are protected now, they may still try to pull you into this type of asset discovery periodically.
They may be wasting their time, but some collection law firms will do it anyway.
I am considering contracting with a Debt Settlement company, my total debt is 39K, of that I have two unsecured loans with a local credit union, (Freedom Federal Credit Union) one for $4,500, and another for $10,000. I also have a car loan with them that’s fairly new. The Settlement company states they will take the unsecure debt to try and settle.
I am unsure whether to go with the company only because I am afraid they won’t get anywhere with the Credit Union and I am afraid of wage garnishment.
Please advise.
What is your cash flow plan for the settlements? What amount of money are you saving up each month, and what other money can you pull together to fund your settlements (tax refund, work bonus, other)?
Debt is with Vystar Credit Union. It was a vol repo of a car. It’s about $12,250. I have about $4,000 on hand now. The debt is a year old and half they have filled suit as of a week ago. Haven’t been served and would like to settle if possible. Co
Lawsuits tend to settle between 50 and 80 percent. More on that here: http://consumerrecoverynetwork.com/question/can-you-negotiate-and-settle-a-credit-card-debt-if-you-are-being-sued/
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Credit union Nasa FCU.
Debt $6000
Making on time pmts
Never late
Interest too high
Want out of this debt
Consolidating company for other debt won’t work with them
We can help. You can schedule a call with me to talk strategy here: https://calendly.com/debtbytes/15min
Who is the credit union? BCU (Baxter Credit Union)
How late in payment are you? 12+ months
Do you have other loan products/insurance with them? No
What is your current financial ability to address this account? Poor
Do you have access to a lump sum of cash you can use to fund a decent offer to settle? Not really. Maybe 10-20% of the total.
Can you afford to re-age the account if payments were smaller? No
I do not see many opportunities to settle with credit unions for that low.
I used DuGood Federal Credit Union. I owe them 2,196$. However my credit card is through them (I’m unable to use it) but it still shows as open, ironically enough the credit limit on it was even raised to 3,000.
I’m afraid if I pay them off, it’ll close my 3,000$ card I’ve had for 4 years with them, which is actually helping my overall credit.
I’d love it if you could contact me, I’ve been stressing over this for some time – I have other debts I’m trying to settle with collections. However the FCU is the one that causes me the most worry for the above stated reasons.
I am not sure I understand what you your goal is with the credit union. Are you behind with payments on that account, or current?
I live in Orlando Florida I have a cc for 5000 and it is already in write off statues. How long will it take before they try and sue me? I don’t want to get sue I just need more time to work on a settlement with them.. Navy federal credit union.
I often see settlements of 50% and lower with Navy Federal, and with a year, sometimes more, to pay the deal.
Let me know if you want help with this.
Who is the credit union? Orange County Federal Credit Union (schoolsfirst)
How late in payment are you? Since 2014
Do you have other loan products/insurance with them? I had a car loan but it is paid in full but they are holding the title
What is you current financial ability to address this account? Do you have access to a lump sum of cash you can use to fund a decent offer to settle? Can you afford to re-age the account if payments were smaller? I could maybe fund a lump sum of 50% for 23,000
Go ahead and click the get debt help tab at the top of this page. Complete your profile and schedule a consult with a counselor. We can talk strategy and see about helping you resolve this with what you have to work with.
Hi my son owes over 25 ooo to his credit union it was 37 thousand but he has paid that amount back in the last 10 years he is married and has 3 children he is living in a council house is there anyway he can get any help thank you
Who is the credit union?
Is he current with payments today?
What is the interest rate on the debt?