Credit Card Debt - Default, Payment Plan or arrears

Tassy

Hi

I lost my job recently and am currently looking for another and expect to be back in full time employment soon.

I told my credit card company of my situation and they want me to fill out an income statement, and have asked me to return the card.

I was hoping to agree to suspend or vastly reduce payments to them until I start a new job, but they say my account will now be in default and remain so for 6 years, effectively knackering my credit status which has until now been unblemished. I have been with this company for over 8 yrs and b=never missed a payment before.

Is there anything I can do to stop the default being registered and protect my credit status?

HELP - Due to my work I have to move a lot and this will affect me able to rent accommodation

Whilst a missed payment is wrong, I will soon be re employed and be in a position to start payments again.... Help!!

BugsyBrowne

Have you kept to the T&C'S on the credit aggrement.

Buzby

Sadly no. It's an automatic process so unless someone can make the payments on your behalf you will be in defaul of your agreed arrangement. Alternatively, pay the minimum each month until you can regularise it.

These days, there is no room to manoeuvre - they will make money from you regardless of your situation.

BugsyBrowne

Also as you've told the credit provider your struggling Expect a credit interest rise Letter slung through your LB within 2 weeks.

Tassy

BugsyBrowne wrote: »

Also as you've told the credit provider your struggling Expect a credit interest rise Letter slung through your LB within 2 weeks.

So, where is the benefit of being open and up front with the lender? If all they can offer is an interest rate rise and a default

Tassy

BugsyBrowne wrote: »

Have you kept to the T&C'S on the credit aggrement.

Not sure will look for them - why do you ask?

BugsyBrowne

Tassy wrote: »

So, where is the benefit of being open and up front with the lender? If all they can offer is an interest rate rise and a default

Because alarm bells will now ring that a customer is in financial difficulty therefore yourself being a high risk hence a higher APR.

Tassy

I get that - but what is the point of telling them . All the advice is " Tell your lender early as they can often help" When you do tell them they treat you with contempt, don't listen to the fact that within 8 weeks I can start repaying them, just as I always have, they just hike the % rate up.
I feel like declaring myself bankrupt and starting over - am screwed for the next 6 yrs now anyway as I have a default registered against me. Whats the incentive to repay?

BugsyBrowne

Tassy wrote: »

I get that - but what is the point of telling them . All the advice is " Tell your lender early as they can often help" When you do tell them they treat you with contempt, don't listen to the fact that within 8 weeks I can start repaying them, just as I always have, they just hike the % rate up.
I feel like declaring myself bankrupt and starting over - am screwed for the next 6 yrs now anyway as I have a default registered against me. Whats the incentive to repay?

My friend was in the exact same position last year where he received a default which he knew would trash his files for 6 years and decided that bankrupt would also be on his files for 6 years and this way all his debts would be paid hence the reason he took the bankruptcy.

Tassy

How's that working out for him?

Tassy

Honestly I have had enough - one mistake and you're screwed. I'm looking in to bankruptcy