Please help...Default with MBNA ...what next?

Debthelpneeded

Hi I am due to default with MBNA , I have 2 credit cards, £3000 and £9000. I have not made a payment for 6 months as after an income and expenditure form was completed with them I was -£98 per month.

What will happen next. I have a mortgage and worried they will sell the debt and get a charging order on my house.

Really worried.... I don't know what to do as I really can't afford to pay them anything at the moment.

sourcrates

Hi,


I see you have also posted this in the stepchange debt advisors forum, they will probebly respond to you tommorow, but i can also help you with this.


You ask what will happen when you default on your credit card account, well the answer is not a lot really, MBNA`s collections dept will try to contact you, it really is best you cooperate with them, but as you have nothing to offer them, you would be better served getting some debt management advice from stepchange first.

The usual procedure would be your account will go to MBNA collections, if they were unsuccessful, it may then be passed to an external debt collector to chase, or at any point they may choose to sell the debt on to a 3rd party, its anyones guess really.

A charging order can only be granted after a county court judgement has been awarded against you, and that can only be acted upon if you fail to stick to the payments, (if the house is jointly owned, it will only be a restriction).

If you are in deficit every month then speaking to stepchange is the best thing you can do, you could write to MBNA explaining the situation, and tell them your taking debt advice from stepchange, you will get an automatic 30 day hold on collection activity by doing this, and it will give you a chance to sort out a solution to this problem.

SusieT

First of all the interest will stop being applied to the debts, so for now they will not get any bigger. Then probably, if you do not pay anything at all - they may telephone you (in which case you do not speak to them inclunding answers to security questions, other than to say that you will deal with them in writing only), send letters asking/demanding payment or various nasty things will happen. Then they could get a debt collector to write nasty letters, then they could sell the debt and you will get more nasty letters from someone else.
You could write to them asking to have a payment plan even £1 a month to start with, or you could contact Stepchange or one of the other free debt charities and start a DMP which would mean that your debts would be dealt with by them and you would have one payment going out a month to the DMP company.
Before you get a charge on your house they would need to go to court for the debt, then for you not to pay whatever is decided by the court, and then they would need to go back to court again to get a charging order, so thats a long way off and in the majority of cases is avoidable by having a payment plan that will clear the debt.
If you click on SOA Calculator and fill it in with actual amounts people here are very good at finding savings that may help you.