Naughty with Credit Card debt but it had to be done

izools

OP -

If you don't plan on taking out credit for 5-10 years, you would be much better off not offering payments and wait for the accounts to default.

This way you would be garunteed that no more interest will be added to the balances no matter what, and in six years time there will be no trace of ever having had the debt whatsoever.

leaving the accounts in an arrangement to pay results in a permanent AP marker against the account until the day it's paid off, be that in two or twenty years time. Defaulting sets a hard and fast six year timeframe on how long the accounts will stay on your file.

And there's nothing to stop the card companies refusing your offers and adding interest to the accounts again in six months.

And don't think they won't - a few years ago I proved conclusively to Halifax that I was paying them more than I could afford and they refused to freeze interest on my credit card.

I don't advocate what you're doing, but you've already done it and have your heart set on continuing along this path, so hey, when in rome do it properly!

NPowerUser

izools wrote: »

OP -

If you don't plan on taking out credit for 5-10 years, you would be much better off not offering payments and wait for the accounts to default.

This way you would be garunteed that no more interest will be added to the balances no matter what, and in six years time there will be no trace of ever having had the debt whatsoever.

leaving the accounts in an arrangement to pay results in a permanent AP marker against the account until the day it's paid off, be that in two or twenty years time. Defaulting sets a hard and fast six year timeframe on how long the accounts will stay on your file.

And there's nothing to stop the card companies refusing your offers and adding interest to the accounts again in six months.

And don't think they won't - a few years ago I proved conclusively to Halifax that I was paying them more than I could afford and they refused to freeze interest on my credit card.

I don't advocate what you're doing, but you've already done it and have your heart set on continuing along this path, so hey, when in rome do it properly!

Thanks for the reply my friend.

It's something I can consider. It's a shame my life was such a misery at my old address that I had to resort to such drastic measures.

I would have been happy to rent but my OH wanted to buy. I have gone from mortgage free to 57Ks worth of debt.

Appreciate your advice. We could of course trade down to a semi in the next 12 months and perhaps be mortgage free again, who knows. We sunk 100% of the sale proceeds in the new home and 10K cash of our own money, guess we overstretched ourselves.

izools

NPowerUser wrote: »

Thanks for the reply my friend.

It's something I can consider. It's a shame my life was such a misery at my old address that I had to resort to such drastic measures.

I would have been happy to rent but my OH wanted to buy. I have gone from mortgage free to 57Ks worth of debt.

Appreciate your advice. We could of course trade down to a semi in the next 12 months and perhaps be mortgage free again, who knows. We sunk 100% of the sale proceeds in the new home and 10K cash of our own money, guess we overstretched ourselves.

Dude you didn't have to, you chose to.

You had to do something about the situation, yes.

But you chose to do it in the way you did.

I've managed to move out of one place into another at two weeks notice without saving and without borrowing. You just need to be sensible. You made the choice to buy a bungalow that was falling apart at the seams because you chose not to put up with renting whilst you saved for somewhere better!

I'm not trying to have a dig but one of the most dangerous things anyone at any point in their lives can do is (flasely) convince themselves that a personal choice was compulsory.

NPowerUser

izools wrote: »

Dude you didn't have to, you chose to.

You had to do something about the situation, yes.

But you chose to do it in the way you did.

I've managed to move out of one place into another at two weeks notice without saving and without borrowing. You just need to be sensible. You made the choice to buy a bungalow that was falling apart at the seams because you chose not to put up with renting whilst you saved for somewhere better!

I'm not trying to have a dig but one of the most dangerous things anyone at any point in their lives can do is (flasely) convince themselves that a personal choice was compulsory.

Thanks. As you say it was my choice (ours but I take the blame).

Things got really bad and I should have settled for something less substantial.

Penalty if we move again inside 2 years so perhaps I can fend them off for 2 years, we downsize then to be mortgage free again and then get them paid off asap after that.

Appreciate your points, they have been helpful.

MYLITTLESISTERLOLA

Not sure if it's been said but there a good chance your credit cards have put you into default, reportable on your credit file, in order to freeze the interest. This will affect your chance of getting a decent mortgage deal in 2 years time. I would imagine this will work out being a lot more expensive in the long run. Also if you decide to move in 2 years and they have taken a hold over your mortage you will end up paying them in full when you downsize possibly + higher rates of interest as any decent deal they would have give you will be scrapped & our and your wifes credit file will be scrap for 6 years again making any mortgage deal difficult to get and ridiclously expensive. I think it's foolish to try to beat the system, the large credit companies have everything all sown up

chattychappy

immoral_angeluk wrote: »

No granted, but considering how easy it is to get personal details and from other posters who've been found on here by employers etc I'd imagine it'd only take one person to twig who the OP was and who they bank with to report it to the creditor at the very least. I'm sure the bank wouldn't be too impressed.

I'd be jolly impressed if such a twigging person went to that trouble. And even more impressed if the bank actually did anything about it.

miss_missy

hi
i have to say i dont agree with what youve done but have you thought about when the time comes to remortage to get a better deal your credit records not going to look great if this isnt a wind up i think your very foolish you say you dont want to get credit again but what if an emergency happens, you need a new boiler or you need a new car etc any number of things could happen and you need money quick i dont think you are clever but quite silly, we are currently in a house that needs new windows, some of the wiring could do with being changed not to mention the fact my bathroom is a building site, i have a half finished kitchen and utility room to name just a few things but we are saving and doing everything little by little anyone could do what youve done but most people have morals
as a last note it really annoys me to hear your story because its like a kick in the teeth to everyone on this forum who yes may have made very silly mistakes but have struggle to try and pay back what they owe and then after lots of stress and worry try to get into payment plans because they are really struggling and then theres you that have set the whole thing up no wonder cc and other show little understanding because people like you make everyone else look bad
sorry if it seems harsh but i cant believe anyone would own up to such a thing

NPowerUser

MYLITTLESISTERLOLA wrote: »

Not sure if it's been said but there a good chance your credit cards have put you into default, reportable on your credit file, in order to freeze the interest. This will affect your chance of getting a decent mortgage deal in 2 years time. I would imagine this will work out being a lot more expensive in the long run. Also if you decide to move in 2 years and they have taken a hold over your mortage you will end up paying them in full when you downsize possibly + higher rates of interest as any decent deal they would have give you will be scrapped & our and your wifes credit file will be scrap for 6 years again making any mortgage deal difficult to get and ridiclously expensive. I think it's foolish to try to beat the system, the large credit companies have everything all sown up

Accepted. We never did want another mortgage again after this one, if we move it has to be mortgage free.

No move on their part "yet" over putting a charge on the bungalow but again its an option for them if they don't like the repayments.

NPowerUser

miss_missy wrote: »

sorry if it seems harsh but i cant believe anyone would own up to such a thing

I might have bothered me years ago but with MP's on the take and 2 million on the sick/disability benefit and my taxes paying for them or banks paying themselves obscene bonuses, I don't have a problem. Yes some are genuinely in need but many are not.

If those that run this country can claim for mortgages that don't exist, I don't have an issue with the things I have done.

Two wrongs don't make it right but nobody has been hurt as a result of my actions except my ex banks profits.

miss_missy

NPowerUser wrote: »

Two wrongs don't make it right but nobody has been hurt as a result of my actions except my ex banks profits.

no just hurting all the people who actually pay for what they borrow

remember posting this back in november last year on the bank charges result thread

100% agree.
Why should I be charged for using an ATM to help pay for someone living beyond their means. Best news so far this year!

funny how now your going to make people pay for your foolish attitude if you really did know how the system worked you would realise that customers end up paying for people like you not the banks profits as they will claw lost money back by upping someone elses interest rates i have to say i cant see you being able to continue on your plan for long certainly not 5-10 years you want to pay your debts i just feel sorry for you wife as she has been dragged into you scam and it will fall apart maybe not now but at some point maybe when your current deal runs out and you realise that to get the best deals you need to remortage oh but for that and to get the good deals you need good credit history which you dont have i dont think your as smart as youve made out as you havent thought long term at all