Struggling to meet credit card payments and sinking....

SinkingInSpain

Hope someone can help me.....need some advice.

Recently we have moved to Spain in an attempt to better our life, unfortunately we probably weren't in a financial position to make the move. However all things being equal the work opportunity is worth it and the life is definitely better.

Right, to start with here is a summary of our situation

139,000 Mortgage (5 year fixed 5.5%, currently paying interest only, 4 yrs fixed remaining, valuation approx 170,000)

3,500 Loan (3.5 years left)
7,500 Sky credit card
2,800 BarclayCard credit card
2,500 Egg Credit Card
1,050 natwest credit card
1,050 RBS credit card


At the moment we are renting our house in England which is sufficient to cover the mortgage but the repayments on the cards are becoming very hard to maintain and we have found ourselves in the situation that we are behind on a couple and don't have the spare money to catch up.

It is not our intention to return to England any time in the near future as we definitely find the life here to be far better and financially we are better off as we are not resorting to using the credit cards to top up our monthly income to pay for necessities each month. However the financial stress relating to the credit cards is having a big impact on our ability to settle in.

Adding to our stress is the fact that we seem to have been mislead on the costs of household expenses all of which comes together to mean that we are not really in a position to afford the monthly payments on the credit cards. Switching the cards is not an option because the damage to our credit score is already done and once they find out we are in Spain they are not interested in knowing any more.

My question are these.....

1. What are the repurcussions on contacting the card people and going onto a repayment schedule? I have mentioned this and they have told me that this will impact my credit rating for a long time.....how long is a long time? Is it the life of the outstanding debt? If so I can live with that as we intend to sell our house in the UK next year if we are still settled here and happy, this would give us enough left over to pay off the debts and still have savings left over.

2. Would we be better to forego the 4 years left on the fixed mortgage and the rate and pay off the cards now?

3. Are there other options which I have not picked up on?

Well that is our story.....I could really use some advice on what to do or information on options that we have not explored please.

Thank you in advance for any advice, it will be greatly received.

Sinking in Spain :eek:

MissKJ

I think you should still do an SOA. The exchange rate is good for you right now, as the pound is weak against the euro, so "buying" sterling to pay a sterling debt is cheaper now than it was the summer. You need to get your head around a few things regarding exchange rates if you haven't already, as if the rate changes, so will your ability to repay.

Work out your budget, then make offers of payments. Your credit rating is already shot, and you don't want more credit. You live outside the UK, and I can't see the companies wanting to chase you for the debts which aren't secured against your home. But I am not an expert, and I would like some-one else to confirm this as you don't live in your UK house?

The same MSE principles apply in Spain as they do here, spend less, earn more, pay off.

By the way, what part of Spain?

stapeley

hi ,how old are the card debts ? These card debts could be unenforceable . Many people have found a request for a true signed copy of the Agreement , has soon that the companies have not got enforceable copies . Example , my card company sold the debt to a DCA , I just found it impossable to pay anything . I requested a copy of the Agreement , only to be sent a copy of the Application form . This failure to produce the Agreement may very well result in the debt being unenforceable . Skycard may be one of the ones issuing cards without the proper paperwork . Have a look at other Threads on the subject of CCA requests good luck

boadicea_2

I've been living in Spain for most of my life. To put it in a nutshell, the cost of living has skyrocketed over the last 5 years or so and wages are sh1te.

Could you not up the rent on your house to earn a bit more income? Maybe it's worth contacting the creditors to explain you can't make the payments and offer them a fixed amount per month that you can afford (someone with more knowledge should hopefully be around to advise you further).

Where in Spain are you?

SinkingInSpain

Thanks to those who have offered their advice.

Two of the card debts are from the last year, the big one is about two years old, and BarclayCard is about the same. The Egg card we have ahd for a few years now. I will definitely have a look at CCA's and maybe there is some hope.

I guess part of my problem is that I do feel a certain amount of guilt and responsibility for the debt and the correct thing is to put it straight.

I am working on an SOA and will be contacting them to make an offer of payment. We are also looking at options for increasing our income but the main thing is to start clearing the card debts rather than just the interest.

Unfortunately we can't put the rent up on the house for about another 6 months but we will definitely be looking at that one.


By the way we are in the northern part of Spain and it is great!!

Thanks again
Sinking In Spain......or maybe with my nose above water.....

boadicea_2

I'm in the north-east, near the French border... Hope you like it here!

binnie

Hi, Just dropped by to see how you are doing.

kel123_2

I assume you have an English Mortgage hence 5.5%. I have a house in N/E Spain with a small Spanish mortgage and thats 3.6%, yes you pay a bit more up front but it's cheaper in the long term with lower monthly repayments - it may be a possibility? Money is probably not your reason for not settling becareful it may be clouding your judgement! If you want to know more about my experiences pleasse PM me.