Amex Charge Card

mmp2016tr · 15 November 2017 at 1:02AM

Hi, I have a charge card and credit card from Amex I have always made repayments in full on the charge card, however I had some personal financial problems and racked up a debt of £5222..

As the charge card is repayable in full I asked them if I could repay monthly but they have said that the decision has been made to close the account down and if I don't repay in full by 4th January a default registered and passed to a debt collection agency

Is there anything I can do to stop this default. I don't have the money to pay in full I was unemployed for a few months but will be starting a temp job on Thursday.

I did ask for a an arrangement but it was rejected.

Really scared don't know where to go really can't afford a default for 6 years.

Arleen · 15 November 2017 at 4:19AM

They are likely already doing you a solid one by letting you repay the sum by 4th of January to avoid the default altogether. And any repayment agreement they would agree would include a default being recorded, as this is what you would be doing - defaulting on your existing agreement.

Though I am not sure why you say that you cannot afford a default? And the only option is to by Jan 4th find the sum and repay the card. But if you were recently unemployed, and in debt, the last thing I would worry about is a default on your file.

Candyapple · 15 November 2017 at 12:39PM

Given it's a charge card and you have to clear the balance monthly - what did you spend last month that cost £5k? Can you not return it or sell it to recoup the money?

Seems a bit odd that you would spend £5k on a card knowing you didn't have the funds to clear it. Was this a gambling debt by any chance?

Either way, as Arleen above has stated they are already giving you 2 months grace period to clear it so if you don't have the funds to do so, then you'll just have to accept the default and sort out a repayment plan with them afterwards.

mmp2016tr · 16 November 2017 at 12:57AM

Candyapple yes unfortunately a gambling debt but my previous history with them is exemplary.

Im worried about a default because I spent years rebuilding my credit and this is going to scupper everything.

Arleen · 16 November 2017 at 1:10AM

mmp2016tr wrote: »

Candyapple yes unfortunately a gambling debt but my previous history with them is exemplary.

Im worried about a default because I spent years rebuilding my credit and this is going to scupper everything.

Yes it will. And you should use that opportunity to tackle your gambling problem and think of it as a blessing as it will stop you from any future borrowing. So have a look at https://www.gamblersanonymous.org.uk/

In 6 years the default will be gone and you can start clean. Although in all fairness if you will pay it off then, with time, it will carry a lot less meaning.

mmp2016tr · 16 November 2017 at 2:35AM

6 years is a very long time. I suffer from Anxiety and im getting counselling from gamcare for my gambling. Im really scared and worried.

Arleen · 16 November 2017 at 2:58AM

It is a long time but it will also help you understand something very important - that you don't need credit, outside of mortgage and that you can get with one paid off and aging default. It's great that you are getting help with the gambling, the next step I would say is to get heave to debt free wannabe http://forums.moneysavingexpert.com/forumdisplay.php?f=76 and post a SOA http://www.stoozing.com/calculator/soa.php so the great people there can help you live within means, and budget for any long-term spending plans you may have.

You can do it without access to credit, just have to have patience and healthy priorities.

mmp2016tr · 16 November 2017 at 3:28AM

But how can I save for a mortgage with debt? I have other debts too just im up to date on repayments with those

Arleen · 16 November 2017 at 4:46AM

mmp2016tr wrote: »

But how can I save for a mortgage with debt? I have other debts too just im up to date on repayments with those

Then what do you need debt for anyway? You need less of it, not more so head over to debt free wannabe and post a soa.

StopIt · 16 November 2017 at 9:06AM

Just so you're aware, your credit file is going to be trashed whatever you do.

You cannot treat a charge card like a credit card. Try to do that and this will happen. Even if you managed to get an Arrangement to Pay, the AR markers are treated as basically a default by every lender, and you will see your access to credit severely reduced. If you're looking for a mortgage with an ongoing AR, you'd be hard pressed to find a lender who will help. An AR marker stays on your file for 6 years after the AR is finished, so the damage can be very very long lasting.

If Amex default this account, which they most likely will, the debt will be sold to a DCA who will accept a monthly payment arrangement.

See my signature and contact a debt charity and read the MSE debt help guide.