So confused what to do

Sarkar8487

Thank you @Sourcrates.

Sorry I think I did not properly ask my questions.

1- If my debts and my wife debts are with same company like MBNA & Tesco, can we deal with them separately and with different solution? like I am waiting for my debts to default first and then go for arrangement plan, however for my wife I have a plan to contact them immediately to inform about reduce payment without waiting on default.

2- Since my wife has 4 credit cards, only two of them I am planning to make reduce payment MBNA and Tesco, should I wait for them to default first and then start payment plan or I can start it immediately and request them to show default on her file in few months? I don't want her receive many calls a day and threatening letters on her name, hence was planning to start repayment plan straightaway so they don't bother her otherwise she will be stressed. 
3- My wife is also bit worried about our joint mortgage since we both have debt issues, I calmed her that house is not in danger and we can get fixed deal from Barclays when our mortgage ends in Oct 25, if you can comment on it here, I will show her a response
4- Do I have inform in letters to MBNA and Tesco what I am paying to other credit cards? I am planning to attached the SOA with letter but might have to play with expenses so can show that we will pay reduce amount on all CC.

I am sorry if my questions are repetitive or silly, it is to give her comfort more then me.

Brie

If your wife is writing to creditors and asking for everything by post she could also include a line that she gives you the authority to deal with things on her behalf.   I don't know if that will confuse anything for you/them but it might be worth considering.  My OH has financial anxiety and I've put this in place for his cards.

sourcrates

Sarkar8487 said:

Thank you @Sourcrates.

Sorry I think I did not properly ask my questions.

1- If my debts and my wife debts are with same company like MBNA & Tesco, can we deal with them separately and with different solution? like I am waiting for my debts to default first and then go for arrangement plan, however for my wife I have a plan to contact them immediately to inform about reduce payment without waiting on default.

2- Since my wife has 4 credit cards, only two of them I am planning to make reduce payment MBNA and Tesco, should I wait for them to default first and then start payment plan or I can start it immediately and request them to show default on her file in few months? I don't want her receive many calls a day and threatening letters on her name, hence was planning to start repayment plan straightaway so they don't bother her otherwise she will be stressed. 
3- My wife is also bit worried about our joint mortgage since we both have debt issues, I calmed her that house is not in danger and we can get fixed deal from Barclays when our mortgage ends in Oct 25, if you can comment on it here, I will show her a response
4- Do I have inform in letters to MBNA and Tesco what I am paying to other credit cards? I am planning to attached the SOA with letter but might have to play with expenses so can show that we will pay reduce amount on all CC.

I am sorry if my questions are repetitive or silly, it is to give her comfort more then me.

Answers -

(1) Debts are tied to individuals, so yes, you deal with them on an individual basis.

(2) If you want a quiet life, go for the arrangement to pay, you can`t request a company default you, they will only do so if they think it is appropriate.

(3) Re-mortgaging with the same lender does not require a credit check, a new product with a new lender would.

(4) As I said previously, you are free to do as you wish, do you play cards at all ? have you heard the expression "never show your hand" ? I would apply that to all financial dealings you undertake.

Sarkar8487

@Brie Thank you for your advice, as I will ask them to deal via post only so should be fine.
@sourcrates: understood all point, thanks.

Rob5342

Lenders can be a bit of a mixed bag when it comes to defaults. Barclaycard were brilliant and defaulted me after three months and backdated the default to when I started the dmp. Virgin on the other hand have been unbelievably difficult and still haven't defaulted me after a year of being on a dmp and another year of paying nothing.

I can confirm the comments about switching to a new mortgage deal. I have four defaults on my credit record and I switched to a new 5 year fixed rate with Santander with no problem at all, it took about two minutes on their website

flipflopflo

 the only thing I will say is that default markers will come off her/your credit file 6 years after they are put on regardless of whether you are still repaying the debt or not. Arrangement to pay markers come off her/your credit file 6 years after the debt is paid IE: take ten years to pay off the debt with the markers on your file and then they stay for another six years, so 16 years in total. 

Sarkar8487

Can you please check if the below letter is fine? also, should I send my SOA with it? it is straightforward since not much income and expenses paid from her salary.

Subject: Inability to Manage Full Contractual Monthly Repayment and Request for Written Communication only as per General Data Protection Regulations.

 

 

Dear Sir/Madam,

 

I hope this letter finds you well. I am writing to inform you of my current financial situation and my inability to manage the full contractual monthly repayment on my credit card account. I have carefully reviewed my financial obligations and have come to the difficult realization that the high cost of living and unexpected expenses has placed me in a challenging position.

 

I am currently facing financial difficulties, which have resulted in a strain on my monthly budget. Despite my best efforts to manage my expenses, I find myself unable to meet the full repayment amount as stated in the contract.

 

However, I can offer a monthly payment of £25, which is all I can afford after reviewing my budget.

 

Furthermore, I would like to request that all future communications regarding my credit card account be conducted in writing, as per the General Data Protection Regulation (GDPR). This is to ensure that there is a clear and documented record of our correspondence, as well as to protect my personal data and privacy right.

 

I will appreciate it if you can also answer the following questions:

 

1.       Currently my credit card is in a promotion period, which means no interest is charged, will you charge the interest once it’s in new arrangement? And when the interest can be stopped?

2.       What impact will be on my credit file? Will it show adverse effects? If yes, the when will you mark it as default? Which is better for my credit file recovery then just showing it as reduced payment arrangements.

 

I kindly request your attention to this matter, and I believe you will understand my situation and accept reduce payment going forward.

 

 I look forward to your prompt response.

 

 

sourcrates

The letter looks ok, but don`t hold out for a personal response, you won`t get those questions answered, all you will get is a generic computer generated response asking you to call them.

Yes, I know, ironic when your asking for written comms only, but credit card companies don`t do personal letters unless they are responding to a complaint, the computer replies to everything else, so it`s a waste of time really, your better off just paying what you can, and allow the cogs to turn, by all means send the letter, just don`t expect to get any answers.

Sarkar8487

So should I setup the standing order then?
What I understood from your reply, this letter doesnt mean anything to them and we will still receive calls follow by threatning letters?

sourcrates

Collection activity is triggered by non payment, or token payments, your letter probably won`t stop computer generated letters from being sent, as they have a duty to tell you when you are in arrears or your payment is late etc, in order to comply with the consumer credit act.

I said previously don`t bother too much about all that, just do what you have to do and don`t worry about things.