12k Barclaycard debt

nervousandready

stuted wrote: »

I decided to register and post a thread even though I've been lurking here for a while.

I have run up just over 12k debt on a Barclaycard since 2001 when I was sold the card at my local Barclays branch when I was about 19 and I was working as an office junior before I went to university.

Ill admit that while I was at university and through to my mid 20s I abused the card - I used to it for day to day spending like petrol for a car I couldnt really afford to run and vanity purchases and nights on the town. After a while I discovered I could withdraw money on the card so I did that as well and by 2009-2010 the balance was about 10k and I was in way over my head.

At the time I was lucky enough that my Dad who worked as a construction executive, agreed to make payments on the card for me until I started earning better money, and because I was not living in the family home where the letters were delivered, I mostly forgot about the debt and as of October 2014 its been a good few years since I've even used the card.

The problem started when my father passed away in July 2013 and I had to finally take control of my own finances. I discovered that my balance was around 11k as my Dad had simply been making the minimum payments for me. I also discovered that I had been paying PPI to Barclaycard since 2001 and that by now that was adding about 1k a year to my balance.

Even though to my knowledge I never missed a payment on the card for over 10 years, Barclaycard had been jacking up the interest rate on my card so it was at the maximum of around 30% because I was a 'high risk' So my minimum payment was now about £300 a month.

I immediately put in a claim for the PPI but after reviewing my case got a letter from Barclaycard PPI department with a leaflet for the Ombudsman inside saying as because I had signed up for it in the branch while I was employed as an office junior I didn't have a claim.

I've been struggling to make the payments ever since - selling possessions, borrowing from Peter to pay Paul etc. I've missed a few payments here and there but managed to bring the account up to date in the end and the last time I paid them anything I paid two months in one go to bring it up to date again. Its now been about two months since I paid them anything and they have only just started calling my mobile about it and texting (I never answer / reply to these just pay it when I can scrape the money together)

But I'm starting to reach the end of my tether because I'm still not earning much money and could be renting my own house with just the minimum payment but instead am living with my mother.

I'm about to write a letter to Barclaycard explaining my situation and requesting them to come up with a payment plan for me and also asking them to freeze the interest which is frankly usurious by now. If they don't agree I'm seriously considering defaulting on the debt as I don't own any property and have few assets to speak of, so even if it came to a CCJ - the 10% of my disposable income would be far far less than a £300 minimum payment

I also owe about 5k to Co-operative bank for a personal loan I took out in 2011 to finance a move abroad which didn't work out - I have managed to keep up the payments for this but there is still a few years to run on the loan (£140 a month) So I'm wondering if I walk away from Barclaycard am I better off just stop paying both and waiting it out for the 6 years or keep paying it?

I'm pretty sure my credit score is totaled by now anyway because of my late payments on the Barclaycard, but the loan I took out was the last time I applied for credit on anything so I'm not too concerned about not being able to get credit for 6 years if push comes to shove.

I am personally pretty much technically insolvent by now although bankruptcy isn't really an option as I'm a director and minority shareholder in a limited company which has a lot of potential in the medium to long term, its just that we are only able to take out a minimal amount at the moment while we get off the ground. Either way I don't expect my financial position to improve significantly in the foreseeable future.

Would appreciate any advice on how to proceed.

Hi, I had about £18k with Barclaycard and called and spoke to them. I explained I couldn't afford the repayments and they agreed to freeze the interest and I paid them £100pm for the Visa and £100pm for the MasterCard. They did want to be sure that I was treating all debtors the same, but never asked for any proof. Overnight, my outgoings were massively reduced. They would rather get something than nothing.


so this is a step I would recommend. I did it all over the phone and then they sent me a letter to confirm.


But I would recommend going to the CAB and speaking to a debt expert. I did and am glad I did. I ended up declaring bankruptcy because there was more than the credit cards. I am now 95 days away from being out of BR. Good luck - but do speak to them - it will remove the fear and it will empower you that you dealt with it.