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  • FIRST POST
    • mardatha
    • By mardatha 14th Jun 17, 6:20 PM
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    mardatha
    Urgent advice re credit card debt
    • #1
    • 14th Jun 17, 6:20 PM
    Urgent advice re credit card debt 14th Jun 17 at 6:20 PM
    I need advice please for my son. I just found out he's in trouble with credit card debt, he got a letter saying he's £300 over his limit and they wanted it paid by the 8th June - he just told me today. He says there was "something about high interest" on the letter, but I haven't seen it myself.
    Could anybody please tell me how these companies work and what will happen now? What options has he got? I've never had a CC and don't know how it works. I'm probably going to have to give him the damn money and I'm not amused
Page 1
    • zx81
    • By zx81 14th Jun 17, 6:23 PM
    • 11,963 Posts
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    zx81
    • #2
    • 14th Jun 17, 6:23 PM
    • #2
    • 14th Jun 17, 6:23 PM
    He should pay the arrears as soon as he can. If he continues to be overlimit, he will receive overlimit and or late payment fees.

    Ultimately, they will default the account, which is where debt collectors may come into play.

    None of this is good for his credit history, so he should resolve it as soon as he can. At the very least, talk to them and not ignore it.
    • Pixie5740
    • By Pixie5740 14th Jun 17, 6:31 PM
    • 10,379 Posts
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    Pixie5740
    • #3
    • 14th Jun 17, 6:31 PM
    • #3
    • 14th Jun 17, 6:31 PM
    Why will you have to give him the money? If he's old enough to have a credit card he's old enough to sort his debts himself.

    Unless you have a joint account of some description with him his debt will make diddly squat difference to your life.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • mardatha
    • By mardatha 14th Jun 17, 6:32 PM
    • 13,783 Posts
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    mardatha
    • #4
    • 14th Jun 17, 6:32 PM
    • #4
    • 14th Jun 17, 6:32 PM
    Are the high interest rates really horrendous? Like bank charges of £30 a day etc? And thank you zx81.
    • zx81
    • By zx81 14th Jun 17, 6:36 PM
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    zx81
    • #5
    • 14th Jun 17, 6:36 PM
    • #5
    • 14th Jun 17, 6:36 PM
    If it's a really high interest card, it could be around 40% APR. So maybe around 3% of the balance each month.

    So £30 a month on £1000 balance.
    • mardatha
    • By mardatha 14th Jun 17, 6:46 PM
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    mardatha
    • #6
    • 14th Jun 17, 6:46 PM
    • #6
    • 14th Jun 17, 6:46 PM
    Dear god. He says he owes over £5000. Thanks for your help, I'm going to sort this out.
    Then kill him.
    • -taff
    • By -taff 14th Jun 17, 6:59 PM
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    -taff
    • #7
    • 14th Jun 17, 6:59 PM
    • #7
    • 14th Jun 17, 6:59 PM
    If you pay it off without introducing some kind of penalty, he's likely to look to you in the future to bail him out.
    Think about what you can do now to stop that happening....
    • mardatha
    • By mardatha 14th Jun 17, 7:06 PM
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    mardatha
    • #8
    • 14th Jun 17, 7:06 PM
    • #8
    • 14th Jun 17, 7:06 PM
    He doesn't get bailed out unless I get the card and it goes right in the fire. And any further mail that comes for him that looks like it's from CC or bank people, I open.
    Last edited by mardatha; 14-06-2017 at 7:08 PM.
    • Edi81
    • By Edi81 14th Jun 17, 7:22 PM
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    Edi81
    • #9
    • 14th Jun 17, 7:22 PM
    • #9
    • 14th Jun 17, 7:22 PM
    What has he spent it on?
    How old is your son? I take it he still lives at home.
    What type of wages is he on?

    I appreciate you want to help him but he needs to learn to stand on his own two feet. That means being responsible for a budget, paying rent and his bills.
    • mardatha
    • By mardatha 14th Jun 17, 7:46 PM
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    mardatha
    That's ok I'll sort that, I just needed advice on how CCs work. Thanks everybody.
    • sourcrates
    • By sourcrates 14th Jun 17, 7:58 PM
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    sourcrates
    That's ok I'll sort that, I just needed advice on how CCs work. Thanks everybody.
    Originally posted by mardatha
    Just be aware there may also be charges that have not been applied as yet, due to been over limit.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • mardatha
    • By mardatha 14th Jun 17, 8:00 PM
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    mardatha
    Sourcrates, if he phones and asks exactly how much he owes, wil they be able to tell him?
    • redpete
    • By redpete 15th Jun 17, 12:07 AM
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    redpete
    Sourcrates, if he phones and asks exactly how much he owes, wil they be able to tell him?
    Originally posted by mardatha
    Yes they will, and they can explain how it adds up and what the interest payments are and will be next month.
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • fatbelly
    • By fatbelly 15th Jun 17, 6:26 AM
    • 10,798 Posts
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    fatbelly
    There will be an option to operate the card online, He will have to register if he has not already done that.

    He needs to learn how to handle a card, not you - you don't have one.

    Get him to post on the credit cards board.
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