Interest on credit cards

Njthom

My payments are all due in the next couple of days, my plan is to not pay them and hope it defaults soon, would you recommend me speaking to them as I am sure they will start contacting me very soon, or do I ignore until it defaults? Thanks 

sourcrates

Don`t expect fireworks when your payments don`t go through, it`s all a bit underwhelming to be honest.

You will get payment reminder letters/emails/calls at first, as time goes by and more payments are missed, the tone will alter, and what is termed "collection activity" will begin, which basically means more letters/emails/calls etc.

It`s a standard process that kicks into gear, they don`t know why you have suddenly stopped paying your accounts, so they will continue to try and contact you, until more than 60 days have passed, after this time, your accounts may then be assigned to debt collectors, or even sold on to debt purchasing companies.

Ideally you want the defaults first, but in the current climate, this is taking much longer, so once you are at the debt collector stage, you can start making payments, if you wish, defaults will usually follow, see how the land lies at the time.

Most creditor reactions are standard responses, but anything you are unsure about, come back on here and ask.

It`s very unlikely at this early stage, but any potential legal action will be preceded by a "letter before action" which lists a number of options and has a 30 day return window.

That is the only letter you need to take any notice of, nothing else they can write to you about matters except that.