Can't pay my credit card- Help?

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foff67
foff67 Posts: 3 Newbie
in Credit cards
I'm not able to pay my credit card (the debt is around £1,200)...The min payments are made from my current account (same bank) but there isn't any money going into this account and the latest card payment has taken me into overdraft. I'm paying daily overdraft charges and obviously interest on the loan...There won't be any money going into my account anytime soon...what can I do?
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Contact them and agree a plan of repayment - whether an arrangement, or a default.

    How long do you anticipate not being able to make payments for?

    How much is the loan you mention? What are the repayments on that? Is it secured on anything?
  • foff67
    foff67 Posts: 3 Newbie
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    Hi, I moved to Spain and haven't found steady employment...The debt on the credit card is £1,200...don't know off hand the interest but I'm paying around £40 a month minimum repayment...There wont be any money going into the bank in the UK...I can only just pay my bills here.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    It suggests that a default is probably inevitable and the sooner the better.

    Is the loan you mentioned the same thing as the credit card debt? So just the one debt?
  • foff67
    foff67 Posts: 3 Newbie
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    Deleted_User wrote: »
    Contact them and agree a plan of repayment - whether an arrangement, or a default.

    How long do you anticipate not being able to make payments for?

    How much is the loan you mention? What are the repayments on that? Is it secured on anything?
    Just the one debt (card) its not secured against anything...How would a 'default' affect me for future financial dealings/banks/credit?
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    It will show up on reports for 6 years, making it hard to get credit in the UK during that time. You should always be able to get a "basic" bank account for day-to-day transactions. However I doubt this obligation extends to non-residents. Since you already have a current account in the UK, perhaps this is not an issue.
  • IAmWales
    IAmWales Posts: 2,024 Forumite
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    Is there prospect for work in Spain in the near future, do you need to review your living there?

    (Not a criticism, I'd rather be in Spain too!)
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Lenders will see you as higher risk and accept/decline you accordingly. As the default gets older, it's impact will lessen, but it's clearly not a good thing.

    It will drop off after 6 years.
  • StopIt
    StopIt Posts: 1,470 Forumite
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    Contact the bank and ask for interest and charges to be stopped as you're in financial distress.


    They'll either put you on an Arrangement to Pay, or default you and you can deal with it from there.


    It'll affect your UK credit rating, but your priority of course needs to be finding employment in your new country of residence.


    As stated, any default will stay on your files for 6 years. Any AP markers will stay 6 years after the debt is settled or defaulted upon a failed AP.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    £1200 is alot of money if you can't see a way of paying it off. But frankly it's not alot in the grand scheme of things - a friend of mine managed to rack up 100 times that in consumer debt despite having a relatively low, and then no income.

    Aside from this debt, are you living within your means? What are your future plans - stick with Spain? or move back? A bit more context and perhaps people could give you more advice.

    One comment I'll make from personal experience. Living in somebody else's country often works out more expensive than you had expected, and certainly more expensive than for locals. It takes a while to get the hang of things.

    Good luck...
  • Sarastro
    Sarastro Posts: 400 Forumite
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    Contact your bank straight away and tell them you are in financial difficulties. You should arrange an overdraft limit to cover the amount you are overdrawn now so you stop incurring charges and then agree a repayment plan with them. Depending on the interest rate on the credit card, an agreed overdraft might be cheaper. What's your credit score like in the UK? Can you take out a lower rate or zero rate balance transfer to pay off the credit card and overdraft so that the repayments you are making go towards repayment, rather than interest?
    Debt 1/1/17 - Credit Cards £17,280.23; overdrafts £3,777.24
    Debt 5/1/18 - Credit Cards £3,188; overdrafts £0
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