Credit Card debt

IronicApple

Well I've got myself into a bit of trouble with my Credit Cards [I have two], I'm currently out of work due to my health so I've been have trouble managing my finances. I'm behind with payments by 3-4 months and I really can't afford to pay them. I've been told that my Credit Cards are going to go to default over the next week or so.

I'm really not sure what this means, in my head I picture bailiffs knocking on the door trying to take my possessions. I've tried applying for bad credit loans etc to try to pay the cards off but because of my situation it's a no go. This is adding a lot of stress to an already stressful situation [out of work with bad health].

I'd really appreciate advice and information on what to do and what will happen when they inevitably default. What will happen? Will I have to go to court? Could I go to prison? Should I expect a knock on the door from the bailiffs?

The last thing I want is to lose my possessions it's took my partner and I the last 4 years and a lot of saving to get our stuff around us and it'd be gutting to lose it all because I had to come out of work.

Thanks

P.S.
I don't know if it depends on the company I have the cards with so my cards are ;
Natwest - around 550 including arrears and charges [350 balance]
Capital One - around 700 including arrears and charges [500 balance]

CLAPTON

a default means that the cards will be closed in the sense that you won't be able to use them

your credit files will be marked accordingly and you won't be able to get credit anywhere for 6 years or so.

the amounts are quite small; it's very very unlikely that the banks will take you to court and obtain a ccj against you.

bailiffs can only be instructed after a ccj has been obtained and a court order to recover the goods
there is very little chance of that happening so I won't worry about that.

Venusflytrap

As Clapton said, the amounts are quite manageable when compared to the average debt reported here. Can you maybe see if there is a family member who will be willing to loan you £850/£900 with which you an then pay off both cards?

You need to be disciplined not to re-spend on the cards again (so best cut them up), especially as you are currently out of work. Once you are back on your feet you can then start to repay the loan. I would advise that you draw up a clear agreement with whoever you borrow from stating amount borrowed, frequency and amount of repayments and start date of repayment. This way you avoid conflicts that often arise from verbal agreements.

mynameistallulah

For that kind of amount, sell some things on ebay. Losing a few possessions is going to hurt a lot less than a ruined credit file.

IronicApple

I don't have anyone that I can borrow from I've already tried asking my parents but they had to pay over £1000 last month for a deposit on their holiday. As for selling I don't really have anything to sell that would reach the £900 mark.

I really don't mind about the 6 years no credit as I want to avoid credit since being in a situation like this.

So if my cards default and they don't file for a CCJ what else could happen? How would they get the money that is owed?

If they do file for a CCJ what happens then? Do bailiffs come as soon as the CCJ is issued or do I get an option to make small affordable repayments?

mynameistallulah

You don't have to pay off £900 all at once, you just need to pay off the arrears and then keep up with your regular payments.

Once the debt is passed to recovery you will be hassled a great deal - expect several phone calls a day.

Ring them up and find out how much you need to pay to bring the account up to date.

IronicApple

I have to pay £300 to get rid of the arrears and that's by the 23rd which I can't do, as I have no income until the 30th. So I'm just wondering what will happen once I default?