Barclaycard are recommending to default. Is this a good course of action??

Galloglass

If this is the solution the other cards will be going the same way very quickly.

Seems you might be better talking to someone about your overall indebtedness rather than looking at the Barclaycard one in isolation. 

Suseka97

I agree with Galloglass - you need to be looking at your financial situation as a whole and not just focussing on the BC debt.  
S**t happens and it doesn't matter what brought you to debts' door, what is important is how you deal with it.  In a way its good that you are not able to remortgage in order to clear those debts (if that was your intention) because that's not the right way to go about it; you would then have turned unsecured debts into secured debts.  There are always options, so you may benefit from a chat with one of the debt charities and see what they advise.  

A debt management plan might be the right route for you, bringing all your debts into play so that you can set up an affordable payment plan and as a homeowner, your house isn't at risk that way.  This is of course if you do not see a way forward, but see your financial situation worsening over time.

Good luck with it!

moatmeister

Hi yes thanks I intend to have a chat with step change but have been putting it off a bit whilst I get everything organised but the general covid situation has brought it too the fore!. However wifey's persistant debt letter came with a deadline which forced the issue and so I thought I would deal with that first.. Had hoped to keep her credit file as clear as possible. As I said earlier mine has been trashed already 

Suseka97

A clean credit file is only of benefit to people who want to borrow money, or when it comes to getting a mortgage - other than that it doesn't really matter.  So, you are not looking to do either - yes?  In which case the sooner you start fixing the problem, the better for you (both).  

When I was in a DMP I was able to remortgage (with the same provider), renew and upgrade mobile phone contracts, get car insurance, get broadband services, change utility providers etc. etc.  The only thing I couldn't do was borrow money - and of course I didn't want to do that anyway

So pick up that phone, make that call and start working towards debt freedom - you won't regret it!

BCH_2

moatmeister said:

Cheers Sourcrates,
Bailiffs came into the equation because I cant work out why the bank would be recommending us to default.  I cant see it is in our interest at all. Surely  is it not better for everyone if they would but it at a zero or low interest rate and let us pay it off whilst maintaining our credit integrity? Or is there something I am missing?

I've posted and asked for help today and spotted your post. Here's another perspective regarding defaults, I had missed payments and took out a DMP, and the lender DIDN'T default me - good, right? Well, no not really.

As the debt was huge (for me), and payments were minimal it would've taken 10s of years to pay off. I later missed payments (inevitable?), Then 2 years later a default came along in 2016. If I'd let it slide a little more, forced them into posting a default in 2014, it'd be gone by now.

I think if your best course of action is 0% payment plan, then make sure the default goes on early, and don't let them not do it. The quicker it goes on, the quicker it comes off.

Edit: £13,000 at £40.00 a month is 27 years.....

RAS

Following from BCH_2

If you stop paying the other creditors to force the defaults, put the money into an emergency fund that covers you for those times when you might have reached for credit. Even if it only totals £1k, it's a buffer.

moatmeister

RAS said:

If you stop paying the other creditors to force the defaults, put the money into an emergency fund that covers you for those times when you might have reached for credit. Even if it only totals £1k, it's a buffer.

Good idea. Isn't that something called "savings"?? Its an old fashioned concept that my parents told me about when I was much younger and something Ive not been able to do for many years due to external financial pressures forcing me to live hand to mouth on a daily basis. It goes hand in hand with another one, "having a life".  Both something I'm certainly very excited about and looking forward to having a go at it!!!!

Galloglass

Good idea. Isn't that something called "savings"??

As mentioned above, always have this item in your Income and Expenditure. It is more like "smoothing" your expenditure rather than savings as things break and wear out. The main example at the moment for people on a budget is central heating which tends to break down at the most inconvenient time in the middle of winter. Savings, as you might call them, allows you to respond to the emergency without having to go searching for expensive credit - if you can find it.