Natwest visa debt -serious illness no ppi

valeriedixon

Heya
My OH has debt of 11000 on Natwest visa card taken out July 1994. when I spoke to them about freezing interest for 12 months but paying monthy amounts around 2% of balance until OH is better (he has Stage 4 throat cancer and cannot work) they will only freeze interest for 6 weeks and then put defult notice. I have made one late payment begining of last year and missed one payment (last one that was due for March 2011) pd 20 - all I could afford. I have writen to them as acting on behalf of OH as he is doped up on morphine and told them I wanted to try to work something out as we have had card for all these years and never missed a payment and only one late payment in 17 years but it doesn´t seem to count for anything. She said that a defult has been issued and I have 17 days to pay what is owed then it will register as defult with CAs. In her letter she stated account was opened under full data sharing rules but during phone con she said something about partial data sharing rules and her mistake. Didn´t quite get what she was saying as very stressed at the moment. All we want to do is have a compromise until we are both able to work. I know the answer is for me to get a job to pay the debt but my OH needs 24 hour care and there is noone else to help. I know it is our debt we should pay, that isn´t the problem, I just can´t at the moment and I am terrified that 30 years of excellent credit is going to be shot to bits in an instant and will count for nothing.:(Any advise please.

Tixy

Hi

Unfortunately if you cannot keep up with payments then a default being registered is pretty much inevitable. Once the default is registered you may well find they will agree to freeze the interest over a longer period providing at least a token payment is made to the account each month.

king100

If they are being like that ask for a copy of your CCA and lets see what they produce?

Are you likely to need a mortgage or some other form of credit in the future?

valeriedixon

We don´t have a mortgage, we rent but we have to move at end of this lease in two month´s time as we need to be in ground floor accommodation and I am worried no landlords will touch us with bad credit. I am informed that they will not feeze interest any longer. So upset that 17 years good history doesn´t buy us a break.

Thanks for replies.

dancingfairy

While no one wants a default at the end of the day a perfect/good credit rating counts for very little in some senses. What's important is you and your family and the health of your husband right now. From what I've seen banks don't seem to be particularly compassionate - it's all about the money to them . You should pay them what you can afford - if it's 5 pound a month then that's all they can have right now.
Make sure you are getting all the support/benefits you are entitled to right now with DLA and carers allowance - or whatever it's not called etc.
Your prioirities should be keeping a roof over your head and trying to keep yourselves fed and clothes and pay council tax, electric etc - frankly unsecured creditors come at the bottom of the list.

What I would say is make sure you don't bank with Natwest as unfortunately they can take funds in your bank account to ensure their credit card is paid off and this can lead to difficulties with more important bills ie rent/electric etc. You need to get a new bank asap - you may have to accept a baisc bank with no overdraft etc if credit rating has suffered but you should be able to get something.

Have you spoken to one of the debt charities such as CCCS or National Debtline?
df

Tixy

Once OH has defaulted if OH provides an income & expenditure form that shows that a token payment is all he can afford and explains the reason for this then it is quite likely that they will then agree to freeze interest at that point. They won't do it over the phone and they won't guarantee now that they will but it is often the case that they will. Even if they won't at that point it may be that after a few months it will be passed to the collections department and that they will then agree to the freeze.

Does OH have any other debts or just this one? They are more likely to freeze interest if you treat all creditors the same, so if he continued to make full payments on a different debt and only a token payment on this debt then this is likely to affect their decision.

Unfortunately having good credit in the past won't affect how the bank will treat you now.

Are you and OH financially linked? any joint accounts? it may be that you could consider looking for a new rental property in your name alone? or ask them to assess the application based on your finances and income alone?

valeriedixon

I have posted SOA, I made an error total owed to Natwest card was 8500 and Overdraft is 11000, sorry got muddled.

I have not included figures for rent and council tax as this is being covered by Housing Benefit..... and yes I am embarrassed about living off benefits but have never done so ever before.

Unfortuantely we have got to this stage as we used all savings, and credit as we had to move to live in town where hosp did best treatment (here the treatment offered is different with improved outcome) so had to spend about 5 weeks in hotels etc until could sort out flat along with other things. We had to come up with month in advance, deposit etc. We had OD and CC balances before but all was manageable. We also had our daughter at uni so until this month we have had to help her 130 per month. For three months we only received 72.57 per week total income.

We have general household items - do these come under assets and I have kept my wedding and engagement ring and the ring my parents gave for my 18th this total about 250. We sold all other jewellery in first three months to pay bills etc

So there it is - I know the debt isn´t the most important thing, health but it is tough when I am having to deal with all of this on my own and care for hubbie.



Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details[/b]
Monthly income after tax................ 0
Partners monthly income after tax....... 130
Benefits................................ 497
Other income............................ 0
Total monthly income.................... 627

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 25
Gas..................................... 70
Oil..................................... 0
Water rates............................. 20
Telephone (land line)................... 45
Mobile phone............................ 10
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 50
Clothing................................ 0
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 12
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 274


Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 250
Total Assets............................ 250[/b]

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Natwest cc (OH)................8500......189.......0
Barclaycard cc (Mine)..........2500......64........6.9
Natwest OD.....................11000.....160.......18.28
Total unsecured debts..........22000.....413.......-


Monthly Budget Summary
Total monthly income.................... 627
Expenses (including HP & secured debts). 274
Available for debt repayments........... 353
Monthly UNsecured debt repayments....... 413
Amount short for making debt repayments. -60
Personal Balance Sheet Summary
Total assets (things you own)........... 250
Total HP & Secured debt................. -0
Total Unsecured debt.................... -22,000
Net Assets.............................. -21,750
Created using the SOA calculator at Reproduced on Moneysavingexpert with permission, using IE browser.

valeriedixon

[
Are you and OH financially linked? any joint accounts? it may be that you could consider looking for a new rental property in your name alone? or ask them to assess the application based on your finances and income alone?[/QUOTE]


Yes we are but luckily I had virtually dormant account (joint) with lloyds and we have been using this. Unfortunately they reference both parties.

Thanks

Tixy

I think you are going to need some help from one of the debt charities, as it looks like long term you are not going to be able to afford the overdraft or the credit card and certain things like your grocery costs look very low to be sustainable for 2 people.

If you seek advice from somewhere like CCCS they will help advise you on a way forward and will supply template letters to you that you can send to OHs creditors.
If he hasn't already then OH needs to get a new bank account away from natwest and have his income paid in there - if he cannot open a new account then maybe have it paid into your account in the short term. If his income is still going into the natwest OD then its likely they will recall that and take any funds in there.

IMPORTANT - Where to seek professional impartial advice about your debts.

elfen

Are you getting Income Support if you are on Carer's? As dependant on what is coming in this can up your income a bit and gives you a bit more to play with, and may help you out with the deficit.

Culex

Tixy wrote: »

Unfortunately having good credit in the past won't affect how the bank will treat you now.

How about telling the national press about how the slimeballs at Natwest - 80% owned by the taxpayer - are mercilessly hounding someone who is unable to work because of serious throat cancer?

With antics such as those, it becomes quite obvious why "Sir" Fred Goodwin doesn't like to be called a banker.