Credit card debt - advice please

Johnboy36

Hi

I owe about £15k on credit cards and am self-employed. I have written to the 6 banks that I owe the money to explaining I am having trouble making the minimum payments and asking if interest could be frozen for a period or if payments could be reduced. I am now starting to receive letters/forms from the bank and asking me to contact them. However, I will happily do so but I really don't want ANY black mark to go against my partner - would this happen. Obviously this is my debt and I want to deal with it but my partner is worried that the house or me will flag up when we come to move/get a mortgage or whatever.. could anyone please give me some advice as to whether this would happen? I am intending of paying off the debt - eventually! ooh I just dunno what to do for the best.

Johnboy isn't my real name - I am female thanks for reading.

katsu

Hi Ms Johnboy,

If you cannot pay the minimum payments on the CCs then you are likely to receive default notices and end up with it being reflected in your credit records. The entries will stay in your credit records for six years, so in the six years you are likely to be unable to get the best deals for credit cards, mortgages etc.

If you do not have a joint bank account, joint loans etc with your partner then it will not affect their credit record. However, when you do want to get a mortgage together then that will link you both together financially, and if your credit record is still showing defaults or payment arrangements then that will mean even if your partner has a good record, the pair of you are a bit less attractive to lenders, so the best deals are probably not an option.

Credit records are linked to people, not houses. It is being linked financially through joint accounts, loans etc, that causes one person's debt to affect another, not sharing an address.

My DH had a CCJ in the past and although it was paid off over 10yrs ago, we still have to declare it for mortgages etc, but we have a mortgage with santanduuur, so it is perfectly possible to get into mainstream lending once the debt problems are resolved, it may just take time.

I suggest you review your SOA to see if you can make any adjustments to still meet your minimums if you want to prevent your credit record being affected, otherwise all you can do is be proactive, pay what you can and you will get through it!

I hope this is some help and reassurance.

Johnboy36

Thank you for your reply, I appreciate it. I am going to get all my papers together, get my head down and go through everything this weekend and either call or go down and speak to someone at CAB to see what's best for me. I think I could possible get to grips with everything except my HSBC card - they are driving me mad! See another thread for that rant thanks again.

ss3n08

My partner had difficulties paying back £1500.00 on a student credit card and went through the debt recovery process. We went to look at getting a mortgage and when they went through the credit reports it was bad news, he did have a black mark against his name.

Tixy

Hi

Definitely a good idea to contact one of the debt charities. As well as CAB you could try the others in this link IMPORTANT - Where to seek professional impartial advice about your debts. (if getting to a CAB office isn't convienent places like CCCS do everything by phone/interenet).

As Katsu says it won't affect your partners credit file as long as you don't have any joint accounts. If you do have any joint bank account then close that and file a 'notice of disassociation' with each of the credit reference agencies before you miss any payments/ enter into any repayment plans.