what happens if you cant afford your credit card bill

amandak

hi
ive lost my job and can no longer afford hsbc c card. i owe 15k
i did write to them and explain and they agreed i can pay £30 a month and they will reveiw it after 6 months they have froze the interest
what happens if i cant get another job in that timescale? i have to eat
i just cant afford the £320 a month min payments. i have to live
what would happen if i still cant pay? would they write it off? i dont want to go bankrupt. could i ignore it? if i moved to my sisters would they find me? my bank accounts are not with c card company and im not on electoral roll. im desperate they cant get blood out of a stone
even if a debt collector came. its pointless, i have no assets

redpete

Could you sell any of the stuff you bought with the £15k to raise some cash?

They might already have raised defaults due to you not oaying the minimum - if so your credit rating would be trashed already.

They won't just write it off. If you stop paying it will be eventually sent on to a debt collector, then you might be able to offer a smaller amount to get rid of the debt, but it sounds like you would be struggling to raise enough even for this.

Worrying about what happens if you don't get a job for 6 months sounds kind of negative. You might have to take anything going (bar work, waitressing, supermarket night shifts) while you look for something else. (that's not meant to belittle waitresses, bar staff or supermarket night workers.)

GothicStirling

amandak wrote: »

hi
ive lost my job and can no longer afford hsbc c card. i owe 15k
i did write to them and explain and they agreed i can pay £30 a month and they will reveiw it after 6 months they have froze the interest
what happens if i cant get another job in that timescale? i have to eat
i just cant afford the £320 a month min payments. i have to live
what would happen if i still cant pay? would they write it off? i dont want to go bankrupt. could i ignore it? if i moved to my sisters would they find me? my bank accounts are not with c card company and im not on electoral roll. im desperate they cant get blood out of a stone
even if a debt collector came. its pointless, i have no assets

Don't worry. I've heard worse stories about people with £100,000 cc debts. You've done the right thing.

I would recommend calling Payplan or CCCS for some debt advice, or even finding your local CAB.

Your priority right now is priority bills [rent, food, gas/electricity, and council tax.] Don't worry about debt collectors, they CANNOT just turn up on your doorstep, they need a court order to do so. Even if this did go to court, chances are the Judge would reduce the amount owed and you would be given a CCJ to pay back £1 a month.

Don't ignore it. They will find you, and that will make it worse for you.

jonesMUFCforever

Most important thing to remember is that the debt is unsecured .
In your position mortgage/rent and council tax takes priority over this debt.

Make a full statement of affairs and pop over to the debt free wanabe board for more expert advice from here then CAB or one of the other Debt charities.
Don't be tempted to go for one of those companies that charges for sorting this out for you.

Sorry Gothig we must have been typing at the same time!

GothicStirling

Great minds think alike.

amandak

thanks i will ring c a B
im so worried i have to pay rent untilities and eat and i have kids i have no savings and yes im scared they will turn up on my doorstep without warning. i have nothing of any value im scared a debt collector will not beleive me and camp out on my doorstep can they do that? its my word against theres isnt it? can they force there way in?
i cant see how i can ever pay it off to be honest i thought i was doing right thing by telling them i was honest with them

Tixy

Chance of a debt collector turning up is miniscule. If they do they have no rights, they cannot come into your property and if you ask them to leave they must and will.

If your creditor decided to take you to court and obtain a CCJ against you then bailiffs could be instructed. They do have more rights but if you don't let them in your property they cannot force their way in. But you are a long way off that at this stage.

Don't ignore the debt - do get some advice from one of the debt charities. Don't try to hide from your creditors by moving house and not telling them. This is much more likely to mean they might take you to court and as they would send the paperwork to your old address you wouldn't be aware of it. Much better to keep them informed. A debt charity will go through your finances with you and suggest what options you have and which may be appropriate for you.

Good luck job hunting.

amandak

but how do they find you? my debt is not with the bank account im with i closed that account so they take any money from my account as debt not with that account since i took the c c ard out years ago i changed jobs now lost it so they cant find me through a job
i just wondered how these people found non payers
even if they do find me i have nothing of value they would be wasting there time

chattychappy

amandak wrote: »

im so worried

Yep, I'm sure you are. And CC companies are so worried they might lose their money.

Hence the makings of a deal - neither side wants this situation to go on. Use the free services that are available and have been recommended. You'll feel better soon - it might be a novel situation to you, but it's a well trodden road.

izools

In answer to your original question, HSBC will happily review your circumstances after six months. If you are unable to resume the standard monthly payments they will look at your income and expenditure, may ask you to post them an income and expenditure form, and manageable payments will continue.

Debts are rarely sent to debt collection agencies as long as the debtor keeps the creditor appraised and continues to make affordable monthly payments towards the debt. It certainly won't go to court or bailiffs so long as you are paying what you can.

They may default the account after having made reduced payments for a long time, or they may not.

My mother had a Barclaycard in a reduced payment agreement for seven years, didn't pay a penny interest in that time, and also in that time, they never registered the account as being in arrears. It shows as having been paid up to date all the time. So creditors can be very nice, so long as you do your bit

Svenena

izools wrote: »

My mother had a Barclaycard in a reduced payment agreement for seven years, didn't pay a penny interest in that time, and also in that time, they never registered the account as being in arrears. It shows as having been paid up to date all the time. So creditors can be very nice, so long as you do your bit

Barclaycard also let me pay a reduced min payment and no interest for six years. They then wrote to tell me they were increasing interest to 1%, and as I had enough by then to pay the balance, I did. Credit card companies aren't always as evil as some people make out.

I completely agree with what everyone has said - keep in touch with your creditors, and look on the bright side - you've got six month reprieve anyway. I'd recommend you head over to the debt-free wannabee board, they'll be able to offer you loads of advice. And try not to worry - they can't take what you don't have.