What happens if I don't pay?

jonnyhatesjazz

Hi I am already struggling with several credit card minimum payments and I have just had notification that the minimum payments are going to increase so there's no way I'm going to meet these new amounts so I'm thinking what might happen if I just simply stopped paying?? I don't own my own house, I have no assets and my credit score is rubbish already so I'm thinking what have I got to lose there's more to life than worrying about making these payments so what could they do?

McKneff

Contact them explai your situation and see if they can help.

Dont just stop paying.

jonnyhatesjazz

I don't think they really want to help though do they?


I'll have to stop paying if I don't have it

Willing2Learn

jonnyhatesjazz wrote: »

Hi I am already struggling with several credit card minimum payments and I have just had notification that the minimum payments are going to increase so there's no way I'm going to meet these new amounts so I'm thinking what might happen if I just simply stopped paying?? I don't own my own house, I have no assets and my credit score is rubbish already so I'm thinking what have I got to lose there's more to life than worrying about making these payments so what could they do?

Hi jonnyhatesjazz,

The debts won't just go away. You have entered into legally binding agreements with each of your lenders. If you don't pay, or come to some arrangement to pay, then they may ultimately, after a lengthy process of passing the debts to Debt Collection Agencies, go down the legal route for enforcement in the courts.

I suggest starting a new thread in the Debt-free Wannabe (DFW) board for friendly and non-judgemental advice.

It would be very helpful to post up your Statement of Affairs (SOA), if you do decide to post on the DFW board.

http://www.stoozing.com/calculator/soa.php

Fireflyaway

from my experience they will pass your file to debt collectors who will ring and write and text every second of the day. Just to save the hassle why not contact them all, explain you are in financial difficulty and offer a small payment. Even £1 a month just for a peaceful life?

bris

Depends on how much it is but in general the debt is just sold to a debt recovery agency and then written off after a few years.


Once you default they have 6 years to take action against you, after that it drops off your credit file. Worst that can happen is the win a court case and you go back to making little payments or they bankrupt you but its rare because it costs them a lot of money to take you to court in the first place.

CakeCrusader

It messes up your credit file for the next 6 years. If you do find that your circumstances improve in a year or two, you'll be stuck for the whole 6 years. You'll be able to apply for a sub prime card (probably), which will charge you interest of around 50%, kiss a mobile phone contract good bye, kiss loans that you may need good bye, kiss a mortgage good bye too. If they pass the debt on to collections agencies they will phone or write (usually both), and some will slap you with a CCJ which also sticks around making a debt in your credit file for 6 years.



You are far better off filling in a SOA on the debt free boards, like Willing2Learn says, there's people who want to help.



I messed my credit file up through illness, and it's been an uphill struggle trying to clean it up. Save yourself the grief that it will cause you and try to get it sorted out.

Terry_Towelling

The very least you should consider doing is paying the same level as you are at the moment, rather than stopping altogether.

I imagine the information they put out about increased minimum payments also came with some small print about talking to them if the new regime was likely to cause you difficulty. So do just that and tell them that you will struggle to meet the new minimum requirements. They may each put you on a repayment programme with amounts that you can manage. Some may even offer to freeze the interest whilst you get back on your feet. I recall this happening when I worked in cards but the world is a different place now.

If you show you are still trying to honour your commitments things will likely go far better than if you stick your head in the sand and hope it will all just go away.

Shakin_Steve

jonnyhatesjazz wrote: »

Hi I am already struggling with several credit card minimum payments and I have just had notification that the minimum payments are going to increase so there's no way I'm going to meet these new amounts so I'm thinking what might happen if I just simply stopped paying?? I don't own my own house, I have no assets and my credit score is rubbish already so I'm thinking what have I got to lose there's more to life than worrying about making these payments so what could they do?

Seriously, what kind of advice did you think you'd get on here. Take out some more credit before it becomes impossible? I mean, if you're going to default, in for a penny, in for a pound.
No....I think you knew what you'd get......served cold

jonnyhatesjazz

Shakin_Steve wrote: »

Seriously, what kind of advice did you think you'd get on here. Take out some more credit before it becomes impossible? I mean, if you're going to default, in for a penny, in for a pound.
No....I think you knew what you'd get......served cold

Spot on that Steve

I don't care about the letters, phonecalls and texts as they will all be ignored, it wouldn't even bother me if they knocked on my door.

I am fully aware it will affect my credit file which is pretty dire anyway.
I have absolutely nothing to lose..........seriously what they going to do put me in prison.....I don't think so

Ergates

jonnyhatesjazz wrote: »

I don't think they really want to help though do they?

They'll help if it makes it more likely that they'll get their money back eventually.