£17k on CC - Not worked for 20 Years!

Stewboy1978

Can anybody advise me on this please....Around 20 years ago (ish) my Auntie was working and had a decent job etc - However for whatever reason she had some form of breakdown and hasn't worked since, most of her time is now unfortunatly spent in hospital.

However over this period of time she has been racking up debt on a Credit Card - To which she now owes £17k on it.

I don't want to work out the monthly interest but it is way more than she recieves per month on her benefits.

I know that she shouldn't have been spending on this card but does anybody know why the bank, over the years have been adding and adding the limit?

Next question is does anybody have any thoughts on how to pay it back? Will the bank accept £10 per week for example - However will the interest not be more per month?

Thanks

KILL_BILL

work out all her income and expenditure and find out what her disposable income is after payingh her essentials etc like mortgage/rent, poll tax, elec and gas water bill, food

with what she has left work out how much she can afford each month even if its £10 a month and write to the creidt card company with the income and expenditure sheet with statement saying that she can afford £10 and that a request be made to freeze the interest.

see www.cccs.co.uk for some further info on debt etc

Stewboy1978

Thanks - Will do something like that.

I thought that banks were not supposed to offer such a thing to people who couldn't pay it back?

cifpower

Stewboy1978 wrote: »

Thanks - Will do something like that.

I thought that banks were not supposed to offer such a thing to people who couldn't pay it back?

How is the bank to know you can't pay it back? Its up to the card holder to operate with financial responsibility.

missile

cifpower wrote: »

How is the bank to know you can't pay it back? Its up to the card holder to operate with financial responsibility.

OP said she had a breakdown and is in hospital. I would suggest she may deserve more sympathy than those who just spend more than they earn.

cifpower

missile wrote: »

OP said she had a breakdown and is in hospital. I would suggest she may deserve more sympathy than those who just spend more than they earn.

Sorry if I came across harsh but I intended to talk about it in general rather than this specific case.

NickX

cifpower wrote: »

How is the bank to know you can't pay it back? Its up to the card holder to operate with financial responsibility.

Well I take your point, but I do think that the banks need to take more care over ensuring that customers can pay back what they are offered - you know, responsible lending etc.

Prior to the Credit Crunch, they seemed to be throwing credit at anyone who seemed vaguely interested, and they certainly didn't seem very responsible.

It is very easy to just blame the debtors, but the Banks are supposed to be financially savvy and should have good idea about who they are lending to.

YorkshireBoy

Stewboy1978 wrote: »

However will the interest not be more per month?

At a 'typical' 15.9% APR, it will be over £210 per month.

Has she been meeting the payments until now, or has the account been placed in default?

missile

cifpower wrote: »

Sorry if I came across harsh but I intended to talk about it in general rather than this specific case.

I agree with your general point. There are many who seen to take no responsibility for their own reckless spending. I guess it is symptomatic of the nanny state?

ad44downey

Stewboy1978 wrote: »

Thanks - Will do something like that.

I thought that banks were not supposed to offer such a thing to people who couldn't pay it back?

Banks don't care. They are totally unscrupulous. They'll just fleece her in interest payments for as long as she's still alive.

Noz

Has your auntie been actually been making any monthly payments in this time?