Please Help me - Student Credit Card

Cloe_barrett5

Hi there,

I am beside myself with worry about this credit card which, in my opinion, was irresponsibly lent to me when I was 19 and didn't have a clue. I have had it for four years now. The limit was £500 (blown in two months!) and it has caused me so much grief that I couldn't even explain! I have incurred about £400 worth of charges over the years (used Martin Lewis' website to help me work that one out!) whilst stringing along with the repayments, paying £100 here, £50 there, and now finally, over the Christmas period, as a self-employed Painter-Decorator, I have fallen behind and they have terminated my account and sent a default notice to whoever they send a default notice to!

Six weeks ago I started a new job as an Estate Agent and my income, for the first time since I left University, is steady and reliable and relatively good. I could easily pay off the whole outstanding balance (which is now around £620) in 6 weeks when I get my first commission but I don't know how to go about this. I have just started to write a letter but I have no confidence because I don't know what I'm doing!

Just to add insult to injury, I have been sent a notice of intention to file a default notice by NatWest Graduate Bank Account which is £1442 and I have until the 28th of May to do something about it. I use another graduate bank account as my main personal etc.

Please tell me what to do.. I have called the national debt line and read through endless leaflets and sample letters that don't seem to apply to me and I didn't understand what this chap was saying!

I am excruciatingly worried about my credit rating/file.. Because all I want to do is buy a house in a few years when I've scrimped and saved..

I'm sorry to go on.. If anyone could please shed light on this situation, I would be forever greatful.

Thank you for your time,

Kind Regards, Cloe

latam2012

I do think you need to take charge and organise yourself. You say it was irresponsibly lent to you, but you were 19 yrs of age and intelligent enough to go to uni. Maybe; you like me were irresponsible with money. Don't play the blame game. You need to keep a closer eye on your accounts, what the balances are and when payments are coming out.

Contact Natwest and explain the situation with the hope of setting up a payment plan? If you explain that you will have a regular income shortly maybe they could be a bit more forgiving.

Cloe_barrett5

Thank you for your response, but really I don't think this is about the blaming of NatWest or organisational skills.

I have come searching for help on this site because I don't know how to deal with such a serious situation, or at least it is to me. I have been trying to keep my head above the water for such a long time and when you don't know how to swim, it's incredibly hard. I haven't been taught how to deal with a creditor issuing a default notice or the consequences/issues surrounding.

I just need some advice from somebody who knows what I need to do. A specific booklet, sample letters, some practical advice?!

Again - Thank you for your time.

latam2012

sorry. I didn't mean to make you feel bad about it. It's just I know sometimes being disorganised and not paying attention can lead to racking up fees.

Call Natwest tomorrow and try to arrange a repayment plan. I have been in similar situations before and managed to do this, providing I am able to give a date money will be going in. If you manage to agree to a plan and stick within the terms then they hopefully wont file a default. However, since the £620 account has already been filed, I'm not sure you can do anything about it.

You may need to open up a new bank account for your wages to go into, otherwise they may automatically go towards paying off the overdraft.

*just saw you have another graduate account, does this have an overdraft on it too?

Cloe_barrett5

Its Ok, you don't need to apologise! I'm just stressed.. I am usually very organised you see..

Anyway yes I do have an overdraft on my HSBC grad/Ac.. How would this affect? I think I could probably salvage my NatWest grad/Ac situation as they've said I must act by the 28th May? What do you think?

To be honest though, I am just really concerned about this default notice on my credit rating?! do you think that there might still be a chance I can amend the situation?!

I'm reluctant to call because I know they can be rather aggressive and I have been advised that I can deal with this by letter..

Thanks for your help

Cloe_barrett5

* probably about 7 months behind on Credit Card payments now.. ?

latam2012

Well if you have an overdraft with the other account, you might be able to agree to make a payment over the phone using it, a kind of goodwill gesture. The situation with Natwest definitely sounds salvageable.

You'll have to either write to or call your other credit card lender. Tell them you can pay the balance off in full and see if they will remove the notice for you. If I'm honest I think it's unlikely they'll remove it if they have already filed it. Seeing as you were 7 months late I assume they contacted you in some way before the default.

The default will stay on your account for 6years

latam2012

maybe this thread could be useful

https://forums.moneysavingexpert.com/discussion/3164328

latam2012

heres someinfo about defaultshttp://www.payplan.com/debt-library/debt-management-default-notices.php

BrownBear9

Hello…

Recently I found it REALLY useful to complete a Statement of Affairs (SOA) and I think it might be useful for you too, please refer to the link:

(sorry as a new user I have just discovered I can't include links- just Google 'Statement of Affairs Calculator -Make Sense of Money' and you will find it)

I think you will have to do one anyway if you are going to try and negotiate a repayment plan with the bank(s).

Things seem much clearer when they are written down! You will see exactly how much you have left after paying your rent and other bills, etc. to put towards paying off your debts. It will also help you to budget so you don't get into this situation again.


I’m not an expert but I think you will be stuck with that credit card default on your file for 6 years- sorry!


Try not to get stressed! -you are doing the right thing by getting the advice of others....



Best Wishes

BrownBear9

I also wanted to say, I think it's better that you contact the banks ASAP rather than delaying it any longer. Maybe in the first instance just give them a call ?? -if they do start getting 'funny' with you then just say from now on you will only deal with them by letter and tell them to expect a letter from you within the next couple of days.

???? -just my advice- I am NOT an expert!