Missed payments on credit card, advice please!

Neverhaveenoughmoney!

We have always been on time making the cc payments. It is a big amount of £7000 on Abbey card. However over the past few months we have always fallen short and the cc payment hasn't been made via direct debit.

We had a letter yesterday from Optima Legal saying that we need to start paying off what we owe and any payments should go to the cc company.

One biggy, its in hubbys name and he doesn't know that the payments have been missed. If I start making payments to them will this keep them at bay or will it just get worse?

I have been advised to set up a standing order to start getting payments to them. I can do £200 a month which is approx. what the direct debits were for anyway.

Any advice greatfully recieved.

opinions4u

I think the starting point is to tell hubby his credit rating has just been trashed,

Then he needs to talk to the credit card company to find out what an acceptable arrangement will actually be.

YorkshireBoy

Forget standing orders. Direct debit is much, much, better!

For a start, you'll need to send your standing order some 4-5 days before the payment due date, whereas DD will collect on the day itself...giving you more time (if you need it) to assemble the funds.

Secondly, the DD originator (Santander) is responsible for collecting payment. All you have to do is make sure the funds are available...which you'd have to do anyway if paying by standing order (and as I said above, some 4-5 days earlier).

And thirdly, statement dates (and hence payment due dates) change. A DD will take care of this whereas a standing order won't and you'll end up not paying in time one month...as is reported all too often on this board.

In a nutshell, you know what's to be paid so budget for it and earmark the funds for the card so they don't get squandered during the month.

Neverhaveenoughmoney!

Hi,

I know I need to tell my husband. I want to start making payments asap though so is setting up the standing order a good idea, or making payments by the giro slip as often as is possible?

Tixy

Good advice from opinions4u, plus I would suggest you work out a detailed monthly budget (income & expenditure) to work out where you money has been going and what you can afford to repay to this card. This is a useful form which will prompt you to remember to budget for all your outgoings and work out the maths of what you can afford - http://www.makesenseofcards.com/soacalc.html

If you can't afford it then you need to look for areas you can save money or cutback. If you still cannot afford it then you might want to seek advice on the debt free wannabe board.

You say you can do £200 a month? are you sure? if this is what the DD was for and it kept boucing why do you think you can afford it now.

Whilst you work out what you can sustainably afford I would a least make a token payment as a gesture (even £10 is better than nothing).

Neverhaveenoughmoney!

Tixy, making a payment tomorrow to them. Can I set up a direct debit from my bank account to the credit card company, as its in my name and not hubbys. I am sure they won't mind where the money is coming from as long as they are getting it, will they?

Basically I don't know why but we fell short by a few pounds for the past 3 months and so it didn't get paid by the bank. Not by alot and looking back at our finances it was silly mistakes here and there by us. So, changing our spending and putting the drect debit t come from my account would be better for us if it is ok?

YorkshireBoy

Whose bank account does the DD come from now? His own or a joint account?

Neverhaveenoughmoney!

It usually comes from his own, in his name only, but it has now been cancelled due to the missed payments. It would also be better to come from my bank account but will obviously not be in his name, just mine, is that a problem?

YorkshireBoy

So he doesn't know that payments have been missed to HIS card from HIS bank account. Strange.

I think he'll have to set up the new DDI himself. Even if you action the request online (if you can?), the chances are they may ring him to check a few things when it's clear the bank account is not in his own name.

Neverhaveenoughmoney!

I know YorkshireBoy, its bad.

Keeping it from him is soooo bad so I wanted to sort it myself.

joslimmer

I got in a terrible pickle with cards and got confused with the different offers and payments so I cut them up with my gardening shears one day. Old fashioned cash and one debit card for big payments and it's much easier now.