Credit Card Arrears - Bank Insist Filling Out Budget Planner (Scotland)

debtslave2024

I have been asked after falling into credit card arrears for 6 months, to fill out a bank’s budget planner to arrange a repayment plan. However, there are certain aspects of it, that I am not comfortable in revealing to them. I kept repeating on the phone, “I want an amount that you would be happy with myself paying you just now monthly, to avoid default.” However, they ignored my repeated question, and just kept going on like a parrot “fill out budget planner.”

I am reluctant at this stage to fill it out, rightly or wrongly. It is asking details such as:

- Do you own your home outright. For myself the question is yes, and I am worried that they could take advantage of this info in the future.
- How much do you owe to other creditors? Once again, if I provide this info, I am worried it could be used against my “best interests.” I also believe that this is personal information.

My personal goal is to get “back on track” with creditors. But in a gradual manner. I owe approximately £14400 spread over 4 credit cards. I have recently taken on a second part time job, to try and resolve matters. However, I am on a 3 month probationary period, and the company seems insecure, and not a happy place to be.

I have also, seen suggestions on this board that defaulting is a good idea. I phoned up a major debt help line in Scotland and they disputed this. They told me that there is no benefit in defaulting - is this correct?

In a nutshell, is filling out the budget planner in my best interests, or could they eventually use certain aspects of it against me, if things do not go to plan over the medium to longer term?

Can I just tell them, “I am not filling out your budget planner, just tell me what you amount you want just now.”

In their letters, they have also hinted that if things are not resolved (in an unspecified time frame,) I could be liable to pay of the balance in full, which is of course is not possible at present.

Please advise. Thanks!

born_again

Yes it is in your best interests.
They will look at the figures & work out what you can afford.
So do not skip any debts etc.
They could ask if they can secure debt on hose, but you do not have to agree (suggest you don't)

These teams are there to help you, they work under guidelines set out by regulator.

DullGreyGuy

Assuming you are wanting them to give you goodwill by allowing you to pay less or to reduce/freeze the interest etc then its absolutely in your best interests to complete their planner for them. They then know when you say you can only afford £100 a month that it really is all you can afford rather than it being what you want to afford because you want to maintain your £1,000 a month eating out budget. 

If your not willing to help them then what help they can give you will be very limited

Brie

If you go through a debt advice agency they will do the same - fill out a statement of accounts (SOA), a financial statement, a budget.  All the same in that it outlines what you have coming in and available to pay to your creditors.  

You could simply make an offer of paying X a month, £1 or £100 whatever.  They may accept that or they may not.  Or they may not even respond and just let you get on with it.    What they will want to see if you do send them a budget of some sort is that all the creditors are treated fairly.  So all getting £1.  Or all getting payments pro rata to what you owe each.  

sourcrates

Credit card companies rarely do payment arrangements for any length of time, anything that takes longer than say 6 months, they may just refer you to one of the debt charities instead, a Statement of affairs shows them what is affordable to you, its all about affordability, which is why they ask you to fill one in.

You don`t have to answer every question, you can pick and choose if you wish.

If you are looking to keep your relationship with these lenders open, then defaulting is not the best option, if that is your goal, you should cooperate with them, otherwise they may decide they don`t want to retain your business.

The people who normally post on here are fed up with debt and don`t really want to get in that position again, to them defaulting is best, as it gives a clear 6 year window till their credit file is clear again, you are wanting to retain that financial relationship, so the last thing you should do is default.

debtslave2024

A new factor is affecting my credit card debt issue. I have taken on a second job in a well known supermarket that is apparently failing financially. I am on a 3 month probation period, that ends in 6 weeks. I have been pulled up twice this week by managers claiming I am too slow - unfairly in my humble opinion. I do not think there is any point in me filling out an income vs expenses document, as there is now an extremely high probability I will lose over 50% of my income in 6 weeks time.

I have no idea what to do! 

MEM62

debtslave2024 said:

I kept repeating on the phone, “I want an amount that you would be happy with myself paying you just now monthly, to avoid default.” 

That amount would be the full payment.  Anything less will result in either an AP or default marker.  In some case, the AP marker is less desireable.  

debtslave2024

@MEM62. Are you sure, I have just arranged with one card company to pay an amount lower than the full amount for 3 months, and they made no mention of default?

RAS

Few of us are Scottish debt specialists.

In England and Wales,

an AP marker stays on your credit record for 6 years after the debt is paid with off
a default clears your credit record after 6 years even if you've not paid a penny.

Which is why we recommend defaults. In Scotland things may bee different because the laws are different.

Check the Scottish rules with National Debtline or Stepchange.

sourcrates

debtslave2024 said:

@MEM62. Are you sure, I have just arranged with one card company to pay an amount lower than the full amount for 3 months, and they made no mention of default?

Credit card company call handlers are the last people on Earth you should be asking for debt advice.

They only know what it says on their screen, we have had many posts from debtors who took poor, incorrect advice from a call handler, and was then shocked when it didn`t turn out as they predicted.

Credit card companies have there own set criteria for defaulting accounts or marking as "arrangement to pay", 9/10 of there own call handlers will not know what that criteria is, never take advise from such sources.