Secure way to pay money and get proof of receipt

bjammy

Hi there,

I've looked at my finances and the only way I can see I can pay out and not receive a CCJ is to use a Credit Card Cheque. It's with the MBNA and they're offering 0% interest until August 2010 and I'll be able to save enough before then to clear it. I know this isn't the best way to go as getting in debt to pay off a debt is a slippery slope, but I don't see much choice.

Has anyone got an concerns about this approach apart from I know it's not a good idea, but I'd rather have a debt I can pay by August 2010, than a CCJ for 6 years? Will it impact my credit rating and I presume I won't be penalised if I manage to pay it off earlier?

I know this is the debt-free thread, but it's in relation to the above. Let me know if I should re-post as a different topic.

Thanks in advance,

B

DarkConvict

So long as you make your minimum payments you will not get a default on the credit card, which is not as bad a CCJ anyway but still lasts 6 years. If you pay say £1000 whilst it maybe 0% interest you might have to be making minimum payments of at a guess £200 a month?

Sidenote - Interest is only added on cards if you fail to make full payment. Also if you miss minimum payments some companys pull the 0%, and jack it up to whatever APR they feel like

See what others say about it.

Justicenpeace

If you believed you could pay it (as indicated in your first post), but now find that you can't and a credit card cheque is the only way to cover all of it, perhaps you could afford to pay a substantial part of it (although not all)? Substantially overpaying on the 0% deal will enable you to clear it much more quickly. Also, set up a DD on the account so that you don't miss any repayments on the deal as that will invalidate it.

bjammy

Hi DarkConvict and Justicenpeace,

Thanks for information. I've used the credit card cheque so now have the monies needed to pay the debt. I'm going to ensure I set aside an amount each month to pay off the debt and make sure I don't default on it.

I've also managed to get some dialogue with the claimant and he has provided me with his bank details. So monies have been transferred and he is going to notify the courts. So just need to check that on Monday and then I can move on and put this behind me.

Once again thanks for the all help. I shall keep an eye open and hopefully I'll be able to help some other people on the forums.

Peace,

B