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  • FIRST POST
    • mmp2016tr
    • By mmp2016tr 15th Nov 17, 12:02 AM
    • 6Posts
    • 0Thanks
    mmp2016tr
    Amex Charge Card
    • #1
    • 15th Nov 17, 12:02 AM
    Amex Charge Card 15th Nov 17 at 12:02 AM
    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.
Page 1
    • Arleen
    • By Arleen 15th Nov 17, 3:19 AM
    • 988 Posts
    • 727 Thanks
    Arleen
    • #2
    • 15th Nov 17, 3:19 AM
    • #2
    • 15th Nov 17, 3:19 AM
    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
    • By Candyapple 15th Nov 17, 11:39 AM
    • 2,472 Posts
    • 1,848 Thanks
    Candyapple
    • #3
    • 15th Nov 17, 11:39 AM
    • #3
    • 15th Nov 17, 11:39 AM
    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.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • mmp2016tr
    • By mmp2016tr 15th Nov 17, 11:57 PM
    • 6 Posts
    • 0 Thanks
    mmp2016tr
    • #4
    • 15th Nov 17, 11:57 PM
    • #4
    • 15th Nov 17, 11:57 PM
    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
    • By Arleen 16th Nov 17, 12:10 AM
    • 988 Posts
    • 727 Thanks
    Arleen
    • #5
    • 16th Nov 17, 12:10 AM
    • #5
    • 16th Nov 17, 12:10 AM
    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.
    Originally posted by mmp2016tr
    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.
    Last edited by Arleen; 16-11-2017 at 12:16 AM.
    • mmp2016tr
    • By mmp2016tr 16th Nov 17, 1:35 AM
    • 6 Posts
    • 0 Thanks
    mmp2016tr
    • #6
    • 16th Nov 17, 1:35 AM
    • #6
    • 16th Nov 17, 1:35 AM
    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
    • By Arleen 16th Nov 17, 1:58 AM
    • 988 Posts
    • 727 Thanks
    Arleen
    • #7
    • 16th Nov 17, 1:58 AM
    • #7
    • 16th Nov 17, 1:58 AM
    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
    • By mmp2016tr 16th Nov 17, 2:28 AM
    • 6 Posts
    • 0 Thanks
    mmp2016tr
    • #8
    • 16th Nov 17, 2:28 AM
    • #8
    • 16th Nov 17, 2:28 AM
    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
    • By Arleen 16th Nov 17, 3:46 AM
    • 988 Posts
    • 727 Thanks
    Arleen
    • #9
    • 16th Nov 17, 3:46 AM
    • #9
    • 16th Nov 17, 3:46 AM
    But how can I save for a mortgage with debt? I have other debts too just im up to date on repayments with those
    Originally posted by mmp2016tr
    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
    • By StopIt 16th Nov 17, 8:06 AM
    • 1,371 Posts
    • 1,167 Thanks
    StopIt
    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.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    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.
    • Tarambor
    • By Tarambor 16th Nov 17, 1:37 PM
    • 1,552 Posts
    • 1,063 Thanks
    Tarambor
    But how can I save for a mortgage with debt? I have other debts too just im up to date on repayments with those
    Originally posted by mmp2016tr
    You earn more money and spend less and pay them off.

    The question is "With a lot of debt why would you qualify for a mortgage?"
    • mmp2016tr
    • By mmp2016tr 17th Nov 17, 1:54 AM
    • 6 Posts
    • 0 Thanks
    mmp2016tr
    Im looking to clear the debt within a year. Therefore I will no longer have a lot of debt but rather a default and 6 years of exclusion. I messed up but this is making my anxiety worse and on top it means I can't have a future
    • Nebulous2
    • By Nebulous2 17th Nov 17, 6:58 AM
    • 1,626 Posts
    • 987 Thanks
    Nebulous2
    Im looking to clear the debt within a year. Therefore I will no longer have a lot of debt but rather a default and 6 years of exclusion. I messed up but this is making my anxiety worse and on top it means I can't have a future
    Originally posted by mmp2016tr
    You wont have six years of exclusion. Although a default shows for six years its effect gradually wears off over that time. Many people get mortgages with some defaults that are less than six years old.

    Concentrate on the things you can change and dont worry about the things you cant. Keep your history as clean as you can. Pay off the debt. Save as much as you can for a deposit and you'll find opportunities gradually open up for you.
    • StopIt
    • By StopIt 17th Nov 17, 7:52 AM
    • 1,371 Posts
    • 1,167 Thanks
    StopIt
    Im looking to clear the debt within a year. Therefore I will no longer have a lot of debt but rather a default and 6 years of exclusion. I messed up but this is making my anxiety worse and on top it means I can't have a future
    Originally posted by mmp2016tr

    I know this is going to sound harsh, but that is the price you must pay for this.


    Your credit file reflects your risk to lenders. You taken £5,000, and ran off with it in the eyes of Amex.


    A default is a fair reflection of a severe breach of contract. If you wanted to spend £5,000 and pay it off over a year, that's what a credit card would've been OK with, although I'd never advise spending £5,000 on gambling for anyone else reading.


    Yes, your credit files are going to exclude you from mainstream mortgages for a few years at least, but if there were no consequences to actions like you have done, everyone would do it.


    If this is affecting your mental health, contact your GP and get yourself help ASAP, and continue seeking help to keep on top of the gambling problems that got you here to begin with. If you need assistance to deal with this debt or any other, remember that there are debt charities who can help and are in my signature.


    Also, as stated before, there is one alternative to a Default in this case, the Arrangement to Pay. The damage that causes to your credit files are if anything longer term. You have no outs here, I'm afraid.
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com

    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.
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