Five steps to tackling your debt problems with the bank repayments
Published 26/10/2010 | 05:00
If you are struggling with loan repayments or believe you are in danger of missing repayments in the future, the worst thing you can do is ignore the problem for as long as possible.
There may even be a temptation to walk away from a mortgage or loan on a property or investment that is now worth considerably less than the total amount outstanding on the loan.
Former banker David McHugh's advice is simple: don't walk away.
Despite the talk you'll hear of people leaving the keys behind, Mr McHugh says that farmers can't just waltz off into the sunset and expect the bank to forget about them over time.
"They will come after you and you probably have assets tied up in land," Mr McHugh said. "It's unlikely you will come out [on] the right side of that equation."
The flip side of this is that farmers are much less risky prospects than the vast majority of clients for banks these days. They want your business.
The question is what should you do to stay on the right side of the law and at the same time meet loan repayments that you just don't have the money for?
According to Mr McHugh, there are a number of strategies available to you in this case.