Closing all my cards

pandaman_2

I need some serious input on this subject:

I have mbna credit card

lloyds cc

barclaycard cc

egg cc

and a loan with Northern Rock

These are all UK based cards etc.

I have been meeting all my payments on everything but now I dont have money to cover my personell expenses.

I only have a pension as income with no assets or savings. I sold up everything and moved half way around the world to be with me new wife, we now have a baby on the way.

Do I close all my cards I am thinking of doing this.

If I make payments I can afford but less than what is due what can they do.

Can they make attachments to my pension?

Last resort shall I file as bankrupt and relieve the pressure.

I will never be returning to UK so I am not worried about poor credit rating as I never want Credit again.


I want to keep paying not the amounts that are due its crippling, yes it is my fault now I am trying to sort it out. I cant pay out money I dont have.

pandaman

lisyloo

Do I close all my cards I am thinking of doing this

You cannot close all your cards whilst they have an outstanding balance.
You could of course cut them up to prevent further sepnding.
Was that what you meant?

If I make payments I can afford but less than what is due what can they do.

They can add charges and interest which could mount up a great deal.
If they wanted to they could take it through the courts and reposses your property (although if you are half way round then laws other than the UK would come into it).
They can put an attachment on your earnings/pension.
They can damage your credit rating.

This is really not a good way to deal with it.
You need to either
a) refinance in a way you can afford e.g. have you considered transferring to a 0% card?
b) come to an agreement with all your creditors about replayment, although this could affect your credit rating.

You could consider bankruptcy but there are implications that you need to understand so you probably need advice from the CAB or someone similar.
I don't think it's something you should do lightly.

I cant pay out money I dont have

I think you need to get advice ASAP from an organisation like the CAB.
Make sure you go to a free organisation and don't touch any commerical organisation that wants to charge you a fee.
The first thing they will tell you do do is to complile an SOA (statement of affairs) which details all your incomings and outgoings.
You might like to do this in advance to speed up the process.

Hope that helps.

BestFootForward_2

Post this on the Debt Free Wannabe (DFW) board, The guys and gals there are very helpful.

BestFootForward_2

I would also like to add, that it can be easy to ignore what's going on in a place that seems so far away. I would deal with this head-on.

Once the problem is under control, then you can move on with your exciting new life, and not have any nasties lurking just around the corner.

pandaman_2

I have compiled alist of ourgoings and shown other creditors to lloyds, but at the moment they seem to have ignored this

thanks to all its head on now and I will put something on debt free wannabee

pandaman

lisyloo

That's really bad.
Get a bona fide organisation involved.
It may help to have a 3rd party involved.
They really are used to dealing with your situation so they will know exactly what to do.

It's really bad that they are ignoring your attempts to resolve the problem.
They always say you should talk to them etc..

But don't ignore the issue.
You need to deal with it.
For one thing you don't want it hanging your neck forever.