Irresponsible Question Time - What happens if I just decide not to pay?

adnanjanuzaj

I owe money on a credit card. It's in an interest free period for another 12 months. I've used it for almost all my purchases for the past year and now owe nearly £10k. Make the minimum payment each month of about £100.

I have no assets - no mortgage although I do have a car.

I know a lot of people will frown on this but if I just decide to never pay it back once the interest free period finishes. What's the worst that can happen?

I know my credit rating will be damaged but dont' really care.

Edit: I have the money to pay it off but it is not held in accounts with the organisation with whom I have my credit card.

Weybridge78

What are you planning to do then? If you do not pay at all you will be charged ridiculously high rates of interest as well as the £12 charges for unpaid balance and £12 for going over your limit and I know there is another one, maybe £12 for a returned direct debit. That £10K you have now will turn into something much bigger. You really should change this attitude about not caring because this is the kind of thing that can get you into an awful situation a few years down the line.

adnanjanuzaj

I'm guessing eventually they will write it off (at which point they stop charging interest and fees) so my end debt could be £12k or £13k, maybe more. But if I never pay it back anyway, it doesn't matter to me what the total debt is?

agrinnall

Some people make you wish for the return of debtors prisons.

https://en.wikipedia.org/wiki/Debtors%27_prison

jamesd

They will:

1. Use normal debt reminders to try to get you to pay.
2. After a few months mark the money as defaulted and take you to court.
3. If you don't pay after the court rules against you they will send bailiffs who will normally take your car.
4. If the money from the car after selling it at auction isn't enough they will look to the court to compel your employer to deduct part of your pay until the rest of the debt is repaid. As you change job the order will be updated to follow you to the new job.

If you are unable rather than unwilling to pay you can look to make a payment arrangement at any time during this process. If you do it once things have gone to court the court will use any evidence you provide about income and essential expenses to work out what is affordable and order you to pay that much until the debt is cleared.

adnanjanuzaj

Thanks.

I'm selling the car soon actually leaving me with no assets. And I'm self employed.

Marcio45

You said you spent the money and it seems you do not wish to pay back. You cant even argue that banks profited from you as you have a 0% deal for the time being. I think that is very wrong, although you havent said yet why you feel you shouldnt pay back. I wouldnt mind spending someone's money and not having to pay back, but thats not how it works.

Please consider that if you default you are doomed in anything that has to do with finance. Banks wont lend you, utilities will refuse you, even a simple mobile phone or brodband contract will be refused. The banks will hunt you and send you to court. You will be blacklisted for at least six years. Everything nowadays goes around credit reporting. As said here, creditors can even get a court order to get money from accounts, savings, wages.

And you have the money to pay it back. That is called stealing...

DCFC79

adnanjanuzaj wrote: »

I owe money on a credit card. It's in an interest free period for another 12 months. I've used it for almost all my purchases for the past year and now owe nearly £10k. Make the minimum payment each month of about £100.

I have no assets - no mortgage although I do have a car.

I know a lot of people will frown on this but if I just decide to never pay it back once the interest free period finishes. What's the worst that can happen?

I know my credit rating will be damaged but dont' really care.

Edit: I have the money to pay it off but it is not held in accounts with the organisation with whom I have my credit card.

Whats the reason for asking the question ?

You have the money to pay the card off.

Your shirking your responsibilities, maybe some will say just like the player on loan at Sunderland over the past couple of seasons.

chattychappy

jamesd wrote: »

They will:

1. Use normal debt reminders to try to get you to pay.
2. After a few months mark the money as defaulted and take you to court.
3. If you don't pay after the court rules against you they will send bailiffs who will normally take your car.
4. If the money from the car after selling it at auction isn't enough they will look to the court to compel your employer to deduct part of your pay until the rest of the debt is repaid. As you change job the order will be updated to follow you to the new job.

If you are unable rather than unwilling to pay you can look to make a payment arrangement at any time during this process. If you do it once things have gone to court the court will use any evidence you provide about income and essential expenses to work out what is affordable and order you to pay that much until the debt is cleared.

All that is possible. They could also make the OP bankrupt. But I wonder if they take the above steps as a matter of policy/routine. You wrote "they will".

pupgrum

adnanjanuzaj wrote: »

Thanks.

I'm selling the car soon actually leaving me with no assets. And I'm self employed.

If you have no assets and self-employed, there's nothing the loan provider or court can do. Attachment of earnings order doesn't work on self-employed people. After 7 years the debt is written off and you profit.

bigadaj

Sounds like there's spare room under a Norwegian bridge at the moment.