Default notice, advice please?

Tdroid

I'll try and make this brief as I can.
2 months ago I was made redundant along with 12 other people.
I have some savings, which we've been living on and I have also signed on at the job centre.
Everything was fine until my car broke down. My daughter is disabled and we need the car for her transport needs, I used what little money we had left to put it back on the road.

Now, fast forward to today. I am struggling to keep up with my credit card payments. I have three credit cards in total. I have written to all my providers explaining my situation. Two of the providers have agreed to freeze all interest and charges for upto 60 days while I get my act together employment wise.

One provider however is being a real !!!! about it. Yes I know I owe them money, not disputing that. But instead of agreeing to give me a little breathing space, they have said that they will instead, accept regular payments, after I send them an income/expenditure form. After which, they will put a default mark on the account.
On the one hand this sounda attractive, interest frozen, and a fixed amount to repay. On the other hand, I really don't want a default mark on my credit file. My credit up until this point has been perfect.

What, if anything, can I do i order to prevent this default action? And further, if a default is applied, how will it affect my other cards? Will the providers of those suddenly withdraw their offer if they see I've been given a default?

Bit confused by it all tbh. Any advice is greatly appreciated.

[Deleted User]

It doesn't sound like they're being a real !!!! about anything. They will agree to reduce your payments, but have been honest with you about the markers on your credit file.

I imagine your others cards have marked an arrangement to pay on your accounts. Have you checked?

At this stage, I wouldn't be worrying about your credit file, as the damage is probably already done. Just concentrate on doing what is best for you financially.

Tdroid

I have checked, there's no marker or anything on the other accounts. It's not a huge amount of money we're talking about really. Card one is £155, card two is £390 and card three is £273 ...I know I will be employed again within 60 days. I just don't understand why the 3rd provider won't follow suit with the first two. It's just very frustrating that my credit will be damaged, over a small blip like this.

Westminster

Yep - your file will very soon (if not already) be fairly damaged.

If it's a significant debt then it's likely to be in your best interest to get the default earlier rather than later.

The reason being, once an account has been defaulted for 6 years, it will no longer be visible on your credit files and will have no impact beyond that 6th anniversary. However, if you bump along for a couple of years and finally close your account then it will be visible for 6 years from the closure (so can impact your future credit for a significantly longer period).

In case you were unaware: If your daughter is assessed as higher rate mobility component for PIP / DLA then she is eligible for a motability vehicle.

Westminster

Maybe head over to the Debt Free Wanabee forum and post your SOA (statement of affairs).

There is plenty of experience and non-judgemental advice to be found there.

planteria

agreed re. the other forum. perhaps this thread could be moved by a moderator?

i hope you can find a way through it Tdroid.

don't be shy about naming them on here, by the way. some of us would be interested to know.

lufc7

I can see the dilemma your facing and fully sympathise.
I dont know if this is a posibility, while you are in discussion with them either pay what you can or not at all, then within the 2 months if you a are that confident of work at worst you will only have 2-3 late/missed payments. If you don't find work you will only be delaying a default anyway and they may then be more prepared to help. Good luck

Ben8282

Tdroid wrote: »

I have checked, there's no marker or anything on the other accounts. It's not a huge amount of money we're talking about really. Card one is £155, card two is £390 and card three is £273 ...I know I will be employed again within 60 days. I just don't understand why the 3rd provider won't follow suit with the first two. It's just very frustrating that my credit will be damaged, over a small blip like this.

These are quite small balances. The minimum payments are not exactly a lot of money. Could you not have found some way to make the mimimum payments on these cards? You have only been redundant for 2 months, you had some savings, you expect to get a new job soon, you have signed on as unemployed, you have a disabled child in the family .... you must have some income coming in.
If you had kept up the normal minimum payments you would not have done any damage to your credit history. Surely you could have paid something then re-spent through the cards?
In doing what you have done you have very seriously damaged your credit history. Arrangements to pay on 2 cards which will stay recorded for 6 more years at the very least.
Perhaps the card that does not want to help is the one you only owe £150 on? Can't you pay off the £150 and use the card for purchases, petrol perhaps?
If you have money to buy petrol, you have the money to make the minimum payment on a card with a £150 balance. A request for an arrangement to pay on such a small balance cannot really be taken seriously.
Telling the credit card providers of your financial difficulties at such an early stage and requesting what you have was a big big mistake.

TopperHarris

Obviously we are all not in the know about your exact amount of saving etc etc, but I think you have received some very good advice.

I would focus on getting something together, whether it be from a friend or family, to pay these cards off at very least the minimum payment each month.

I could be wrong but I believe 3 missed payment in a row would result in a default. I had a couple of these and I can vouch that they will cause you a lot of issues in the future regardless of the amounts.