Urgent advice re credit card debt

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mardatha
mardatha Posts: 15,612 Forumite
in Debt-free wannabe
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 :mad:
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  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    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
    Pixie5740 Posts: 14,515 Forumite
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    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.
  • mardatha
    mardatha Posts: 15,612 Forumite
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    Are the high interest rates really horrendous? Like bank charges of £30 a day etc? And thank you zx81.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    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
    mardatha Posts: 15,612 Forumite
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    Dear god. He says he owes over £5000. Thanks for your help, I'm going to sort this out.
    Then kill him.
  • -taff
    -taff Posts: 14,506 Forumite
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    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....
    Shampoo? No thanks, I'll have real poo...
  • mardatha
    mardatha Posts: 15,612 Forumite
    edited 14 June 2017 at 7:08PM
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    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.
  • Edi81
    Edi81 Posts: 1,444 Forumite
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    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
    mardatha Posts: 15,612 Forumite
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    That's ok I'll sort that, I just needed advice on how CCs work. Thanks everybody.
  • sourcrates
    sourcrates Posts: 28,885 Ambassador
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    mardatha wrote: »
    That's ok I'll sort that, I just needed advice on how CCs work. Thanks everybody.

    Just be aware there may also be charges that have not been applied as yet, due to been over limit.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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