Can I just run away ?

montira

This question may have been raised before but this forum is so big I thought I would start a new thread.

I'll keep it brief but I have credit card debts around 50K in the UK. I have been working in Switzerland for the last
six months and continue to pay my monthly payments back in the UK but its getting hard with the interest rates at an exhorbitant 30%
on some of them.

I am tempted to just forget about the UK and to put it bluntly do a runner, or possibly just decalre myself bankrupt , although
I am not sure how I could hide my swiss employment from my creditors which is quite a well paid job.

I think they could track my swiss bank account as I have made international transfers to my UK bank account.

I have absolutely no assets in the UK and it wouldnt worry me to never go back , although I would need to renew my passport in 8 years
time.

I know this is immoral and not paticularly good thing to do , but I also consider
30% interest rates in these times are also immoral.

Anyone tried threataning the credit card companies with default if they don't reduce the interest rates to something sensible.
Thanks in advance

ianian99

dont see it as any more immoral than going bankrupt for the sake of it as many people seem to be doing now.

happy_chick_3

Hi montira

firstly take a deep breath - everything can be sorted out!

I know it seems like you have no way out and I completley understand how you feel. Spending some time looking through these boards you'll see people who are overoming their debts and working their way free of it - it can be done and the feeling of achievement is amazing when you get there.

Post your SOA and let everyone help you and remember you will be able to get through this

kazwookie

Can you change the 30% card to a lower rate card?, and use the extra to help pay it off?

montira

Another i spent the money but dont wanna pay it back ploy...

I anticipated this view and I essentially I agree and I would be happy to repay my debt under say 6-7% interest but 30% is just taking the P.

And this is VISA not a storecard etc

happy_chick_3

Rest assured that is not the attitude of most people on this board and no one is encouraged to make anyone else feel bad. This is not the board for people who want to make others feel bad for their debt - its a place of support and motivation.

edinburgher

happy_chick wrote: »

Rest assured that is not the attitude of most people on this board and no one is encouraged to make anyone else feel bad. This is not the board for people who want to make others feel bad for their debt - its a place of support and motivation.

That's very true, but the OP needs to take responsibility for their actions, too. Like prison 'but for debtors', this forum is also for rehabilitation. I honestly believe that all people who've got into debts they can't afford in the first place (myself included) have a problem. I'm not saying it's an addiction, or anything that severe, but we certainly need guidance and education to prvent ourselves acting so foolishly in the future!

Montira - while a few negative comments have been made, you have to realise that this is your mess to sort out. I don't think you'll be able to get a loan for those sorts of rates and with cc companies/dcas it would appear to be all the interest or nothing.

You may wish to contact Payplan and CCCs, although they may not be able to help as you're not in the UK.

You could consider starting to make token payments against your accounts (what you can actually afford) and try and make reduced payments that way. This, however, means you'll go into default very quickly and will still have a big impact on your credit history (for six years).

Declaring yourself bankrupt may also be an option, but if you like living in the UK, may not be a great idea, as it will have ramifications for a long, long time. Then again, if you like Switzerland, maybe not such a problem?

I don't think there's a 'magic bullet' for your debts, realising this is key.

montira

Can you change the 30% card to a lower rate card?, and use the extra to help pay it off?


Not so easy. I have 6 cards all maxed out with some late payments to boot. I would think getting a new card with a limit enough to make a difference would be nigh on impossible.

I just got a letter one day from A&L saying they were puting the rate up from 16 to 30% and according to the agreement theres nothing I can do about it. It makes me angry they can do this and revenge is a big temptation.

GeorgeUK

There are a few points this raises, so i will try to be clear on all of them.

The UK has reciprocal agreements with Canada and Germany, which means that the legal system of these countries could be used to enforce a debt from the UK. If you are in any other country, they cannot enforce the debt. You may get defaults on your UK credit file or even be declared bankrupt in the UK, but as far as i am aware (and you should double check this), it will have no bearing on your credit status in Switzerland.

It may be possible to write to your creditors making a settlement offer of a % of the debt once you make it known of your intention not to return to the UK. Make sure any offer is in writing and states that the settlement is a "full and final" offer and not "partial". Usually, creditors do not settle unless you are in arrears in which case the original creditor may offer 50%-75%. If the debt is sold to a Debt collection Agency, you may wish to offer 25%-50%.

It would be advisable to contact your creditors in writing making your position known. While i do not recommend just running away as you put it, they are not really in a strong position so you may be able to negotiate a better deal for yourself.

Have you looked at clearing one of your cards and trying to get a promotional offer such as low interest for life of balance? If you were still in the UK, i would suggest possibly getting a new card at 0% and then transferring to clear existing cards to get more offers. With my cards, i am paying 0% (15 months), 2.9% (6 months), 7.92% (life of balance).

Please confirm what i have said via citizens advice or some other organisation, but i don't think you have anything to lose by trying to negotiate with your banks or trying to reduce the interest.

RobertoMoir

happy_chick wrote: »

Rest assured that is not the attitude of most people on this board and no one is encouraged to make anyone else feel bad. This is not the board for people who want to make others feel bad for their debt - its a place of support and motivation.

Supporting and motivating isn't the same as condoning dodging responsibilities.
Don't want to be bashing the OP but people running out on debt is part of the reason for the 30% rate they complain about. As the risk and losses of lending increase, so will the cost of borrowing to pay for those risks and losses.

OP: If you have a well paid job, then do you not have enough disposable income to allow you to concentrate on clearing the worst debts first, to try and bring things under control?

montira

well I have been paying this debt for five-six years now and it hasnt diminished. Its the unfairness of it that tempts me to default. All I really want is a fair deal. And 30% is not fair.

I think most would agree 30% is not reasonable.

At these interest rates I would think it will take 6-7 more years to pay off this debt. This is effectively taking over my life. As I am 50 years old with a chronic disease I am now balancing the pros and cons of continuing with paying my debt.

At 5-7% I think I could do it in 2 years.

RobertoMoir wrote: »

Supporting and motivating isn't the same as condoning dodging responsibilities.
Don't want to be bashing the OP but people running out on debt is part of the reason for the 30% rate they complain about. As the risk and losses of lending increase, so will the cost of borrowing to pay for those risks and losses.

OP: If you have a well paid job, then do you not have enough disposable income to allow you to concentrate on clearing the worst debts first, to try and bring things under control?