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Does Credit Card Debt Go Away? Anyone Know?

apostol
Posts: 2 Newbie
in Credit cards
Hullo. I need help on my debt situation. I total $53k on all my credit card debts and I have just lost my job so I don;t know if I can still be able to pay them, at least anytime soon. i want to know, does credit card debt go away? and how long would it take? i really can't make any payments on it right at the moment and it might take long before i can get a job again. Peace
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Hi
Are you UK based on in the USA (or elsewhere) as you mention $ not £.
If you are in the UK then no your debt won't go away. If you cannot afford the minimum payments then contact your creditors and offer just token payments, explaining you are out of work (even just £1 or £5 to each creditor is better than nothing). It will still affect your credit report but will show you are willing to pay, just unable, should your creditors decide to take you to court.
Also check if you have any PPI on any of the accounts and if so make sure you put a claim in.
If you are outside the UK then no idea, sorry.A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
Jessica, that's not quite correct. A debt becomes statute barred if the creditor does not initiate court proceedings within six years of the date of the account being defaulted. Once the debt becomes statute barred they cannot then take you to court, but the amount is still due and is not written off. They just can't get a CCJ against you for it.Getting married 02.08.14
Wins for the wedding: membership for a 'wedsite' and app, £35 gift voucher for party supplies shop, £50 worth of hand painted signs, 1kg of heart shaped marshmallows :money:0 -
If you have just lost your job, did you get a payoff. If you did don't be tempted to make large payments to the accounts unless the payment will bring the next minimum payment down to a sustainable level. Maybe you might be able to pay the min each month instead.
Can you recycle your payments. By this I mean use one to pay another. For example I had an egg card, a cahoot card and a virgin money card. When I was up to my eyeballs I would make a payment for say £100 to Cahoot, once they received I would balance transfer it (Cahoot dont charge fees for BTs, only interest if not paid in full), to Egg. Then I would transfer from Egg to Virgin. Again Egg didn't charge fees only interest. So with one lump of money I paid off met all the payments on three debts even though the min amounts taken seperatly would have worked out to be too much.
Be aware that whilst it is a good idea to speak to your lender, they will probably start racking up your rates as you will in effect be telling them that you are a higher risk. If any credit card tries to put up the rate you have 30 days to inform them that you do not accept the rate rise. This will mean that you will more than likely have to cancel your card, (which does of course stop you from borrowing more money), but you will be able to continue to pay the min amount.
You might find it useful to post who your debt is with, the interest rate, the available credit and the min repayment for each of your cards on this forum to see if anyone can make suggestions.0 -
the_insider wrote: »Jessica, that's not quite correct. A debt becomes statute barred if the creditor does not initiate court proceedings within six years of the date of the account being defaulted. Once the debt becomes statute barred they cannot then take you to court, but the amount is still due and is not written off. They just can't get a CCJ against you for it.
That's not quite correct either. A debt becomes statute barred six years after the date of last payment or acknowlegdement by the debtor. The 6 years doesn't run from the date of default.
Here's an example...
July 1st 2010 I owe £1000 to ABC bank but lose my job. I stop paying.
Sept 1st 2010 The bank issues a default notice and passes the debt onto a DCA.
March 1st 2011 I get a job and make regular payments for 2 years paying off around half the debt.
March 1st 2013 I lose my job again, move house, don't tell them my new address etc and when they catch up with me I ignore them.
In the above scenario, assuming I make no further payments or written acknowledgement of the debt, it will become statute barred on March 1st 2018. This is assuming a CCJ is not taken out at any point btw.
Your post indicates the debt would be statute barred on Sept 1st 2016, which would only be correct if I had not entered into a repayment agreement or been in contact with the DCA since Sept 1st 2010.
I hope this clarifies things for people. :TRemember this: nothing worth doing is easy.0 -
You can own a company again after being bankrupt and discharged.0
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That's not quite correct either. A debt becomes statute barred six years after the date of last payment or acknowlegdement by the debtor. The 6 years doesn't run from the date of default.
Here's an example...
July 1st 2010 I owe £1000 to ABC bank but lose my job. I stop paying.
Sept 1st 2010 The bank issues a default notice and passes the debt onto a DCA.
March 1st 2011 I get a job and make regular payments for 2 years paying off around half the debt.
March 1st 2013 I lose my job again, move house, don't tell them my new address etc and when they catch up with me I ignore them.
In the above scenario, assuming I make no further payments or written acknowledgement of the debt, it will become statute barred on March 1st 2018. This is assuming a CCJ is not taken out at any point btw.
Your post indicates the debt would be statute barred on Sept 1st 2016, which would only be correct if I had not entered into a repayment agreement or been in contact with the DCA since Sept 1st 2010.
I hope this clarifies things for people. :T
If a CCJ is taken out against you, it is not statute barred after 6 years.0 -
If a CCJ is taken out against you, it is not statute barred after 6 years.
Indeed this is correct. Though after a CCJ is 6 years old and unenforced, the creditor has to reapply to the issuing court to enforce it and have a damned good reason why they need a second stab at the debt, which is why it's rarely done- the only scenario I can think of that the courts would sympathise with is if the debtor left the country for a number of years and only just got back.
A 6 year old unsatisfied CCJ will still fall off your credit file and you can be fairly sure that will be the last you hear of it.
However, it is always best not to get in that sort of position in the first place.Remember this: nothing worth doing is easy.0 -
I'm sorry but YOU spent the money, why on earth do you think you should not have to pay it back?
It's theft, plain and simple.0 -
I personally am 3years into my 6years of waiting till my 12k is all written off,
If you are in hiding for 3 years, for that amount of cash, they will go for a CCJ, and no amount of hiding will help you.
As you will get baliff letters/calls every week for the 1-2years,
if you ignore them all they give up then as itd cost them more to keep chasing and try court action when its clear your not going to/unable to pay.
If bailiffs are involved because of a CCJ, they WILL NOT just give up and go away.
If you think that then you are even more stupid than you appear to be.0 -
Hehe love it.
Help i've borrowed someone elses money, spent it all, and now they want it back!! If i close my eyes long enough will all the bad monsters go away? :rotfl:
You do have to chuckle that i bet these people complain about how their tax money is being wasted in things like the expenses scandal and how the MP's involved should be held to account and pay the money back ASAP. Or perhaps moaned about the banking crisis, asking why these bank spent money that wasnt theirs to spend?0
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