Have ignored debt for months, help!

jhastomuchdebt

Hi

I stupidly took out 2 credit cards almost 3 years ago each with a credit of £1000, I've paid them of twice promised myself I would cut them up but didnt and have run them up to the max again, the last payment I made to either of them was December last year.

1, I have been a complete idiot in not paying them

2, I thought I would be better trying to save money from my salary each month and paying a bulk of as the interest was ridiculous (Virgin & Mark & Spencer cards) on a minimum payment of say £40 almost half of this was gone on intrest.

3, Its July and I've not saved a penny

So now I have letters from 1 debt company and constant phone calls to my office (which I ignore).

Obvisiouly everyone wants there money back and its at the "full payment" stage now, I think the Virgin card is £1043 and the M&S card is £980.

Can they take the full payment or can I try and pay half?

Its completly my fauly I'm usless with money and went through a stage of buying stuff when I didnt actually have the cash (whole I'll pay it later nonsense)

Now all I want to do is pay them, whats the best way to approach these debt companies?

Thanks

Jacqueline

Tixy

Hi and welcome

Always deal with them in writing, never by phone.

You will almost certainly have defaults on your credit file for these cards and these will stay on your credit report for 6years making getting any new credit difficult.

Work out how much you can afford to repay the cards monthly and then send them a letter to offer them that amount on a monthly basis (its usually easiest to ask for their bank details so you can pay by standing order). You could also ask that interest and charges are frozen on the accounts (they don't have to but often will).

The alternative if you can afford to pay off a lump sum might be to offer a full & final settlement for less than the total value of the debt. Whether they will accept this/or how much of a discount they might accept would depend on whether they are with inhouse debt collecter still or with genuine 3rd party debt collectors. If you are in a position to pay a lump sum then we can post you up a template letter to use.

Who are the cards with and who are the debt collectors?

Fang_3

If you post your SOA here then people will be able to help you and suggest the best way to pay them off soon.