Credit card advice

Inespa85

Hello,

I'm looking for some advice with my credit card debt.

We unfortunately got in a pickle and are slowly getting out of it with all loans/hp finishing early next year leaving just the over drafts and credit cards to deal with.

I spoke to mbna about my debt as the £95 interest was crippling me and I've just switched jobs so will be 6 weeks without pay.

In the end they wanted to go through a full income/expenditure with me.

They came to the conclusion I could only afford £29 a month and agreed to freeze charges and interest however the minimum payment would still be around £135 a month so I'd effectively be defaulting on the rest.

They assured me it would be fine as long as I keep them in the loop. We've worked hard this month saving/selling and cleared 2 small debts and I'm hoping in the next 2 months we will be better off with my new role and 2 debts down.

They said I could also pay more than £29 a month if I could afford it.

The thing bothering me is I've never missed a payment and nor do I feel comfortable in defaulting.

Whilst they've frozen the interest do you think I should stick to the £29 or try and overpay if I have spare cash at the end of the month? Not being funny I don't trust them not to come after me harder or with a ccj later!

I'm just not sure what they will say if I can overpay monthly if anything, I was barely making the £135 a month before and npower have stung me for another £40 due to their billing errors so it's now even tighter? Maybe I'm over thinking it?

Monkeyballs

Hi,

I've always found most creditors to be quite helpful in the short term so long as you keep them in the loop and not just start panicking and ignore them.

You're not defaulting, what you doing is entering into an arrangement to pay which is a whole other thing (I think it shows as either AR or AP on your credit report) - I'm guessing they said they'll need to review it in 3-6 months time?

If it was me, I'd play ball and you either just pay £29 to meet your current agreement and save any extra you can muster as an emergency fund (just in case) or make a small over payment of perhaps £5-10, whatever you feel comfortable with

For the moment, the main thing is to play ball and keep them in the loop.

MB

Inespa85

Monkeyballs wrote: »

Hi,

I've always found most creditors to be quite helpful in the short term so long as you keep them in the loop and not just start panicking and ignore them.

You're not defaulting, what you doing is entering into an arrangement to pay which is a whole other thing (I think it shows as either AR or AP on your credit report) - I'm guessing they said they'll need to review it in 3-6 months time?

If it was me, I'd play ball and you either just pay £29 to meet your current agreement and save any extra you can muster as an emergency fund (just in case) or make a small over payment of perhaps £5-10, whatever you feel comfortable with

For the moment, the main thing is to play ball and keep them in the loop.

MB

Thank you.

They did say it would be reviewed and maybe sold on but it's unlikely to happen.

The letter they sent said that I wouldn't be keeping my terms of the credit agreement and they would have to register a default though is this the ap/at part?

Monkeyballs

Inespa85 wrote: »

Thank you.

They did say it would be reviewed and maybe sold on but it's unlikely to happen.

The letter they sent said that I wouldn't be keeping my terms of the credit agreement and they would have to register a default though is this the ap/at part?

Hmmm... No, if it's going to default then it means just that - it's a default registered against your file as 'D' as opposed to being and arrangement to pay which like I mentioned shows as either an 'AP' or 'AR'.

I've no experience of a creditor issuing a default on a debt while setting up a repayment plan outside of my DMP I'm afraid but assume it will work in the same way I.e. you keep up the agreed terms and they don't chase or charge, etc.

I think you'll be ok though, perhaps someone esle reading this thread has more experience or advice?

MB