Token payments unsecured debts

wmat983

I would imagine lots of people on here would have had credit cards and lost job and income not the same and unable to afford your credit card debts. I've been advised to offer token payments if I can manage that if not explain you can't. 

I was wondering what would likely happy if your income didn't improve to the level it was when you had a good job. I was told some may apply for CCJ some might not even bother? If your income was small and no income to pay I guess judge would likely grant a charging order or something?

sourcrates

Most consumer credit act debts are what are termed, "non priority" which means they are not important as say your mortgage, rent, council tax etc.

Token payment or non payment, usually results in the debts being sold on, all companies now ask for an income and expenditure report from you, to see what you can afford to pay, if anything, this is a requirement brought in in recent years by the FCA.

If your budget shows you cannot afford to pay anything, then so be it, the company has no choice but to accept that.
They may ask you for updates periodically, and if there is no change over time, the debt will either just be side-lined, written off, or sold on again.

There is little point taking someone to court over a debt they do not have the means to repay.

Some creditors, if owed a large debt, may try and secure it on an asset that you own, such as a house, but this is quite rare, and there are a number of stages to go through, where you have every opportunity to have your say, usually you are encouraged to work with one of the free debt charities to find a possible solution.

How you are treated is usually all down to personal circumstances.

wmat983

sourcrates said:

Most consumer credit act debts are what are termed, "non priority" which means they are not important as say your mortgage, rent, council tax etc.

Token payment or non payment, usually results in the debts being sold on, all companies now ask for an income and expenditure report from you, to see what you can afford to pay, if anything, this is a requirement brought in in recent years by the FCA.

If your budget shows you cannot afford to pay anything, then so be it, the company has no choice but to accept that.
They may ask you for updates periodically, and if there is no change over time, the debt will either just be side-lined, written off, or sold on again.

There is little point taking someone to court over a debt they do not have the means to repay.

Some creditors, if owed a large debt, may try and secure it on an asset that you own, such as a house, but this is quite rare, and there are a number of stages to go through, where you have every opportunity to have your say, usually you are encouraged to work with one of the free debt charities to find a possible solution.

How you are treated is usually all down to personal circumstances.

Thank you for your reply very helpful information.