Credit card non payment what next

curehead · 27-05-2009 2:07pm #1

after being laid off work about six months ago i was having trouble paying back payments were bout 300 a month which was no problem when i was working . since sighning on was only able to pay about 100 a month but that never brought the payments down due to interest , now its been given to a solicitor what i want to know is what happens next ?
will there be a court case or will i be able to set up some kind of payment plan ?
thanks in advance .

petes · 27-05-2009 2:09pm

Has the solicitor contacted you yet?

partyguinness · 27-05-2009 2:12pm

The solicitor will prb issue debt collection proceedings.

But these seems premature. If you are paying back €100 then I dont understand why the credit card company are being such dicks. Its not like you are not paying anything and its clear you are doing your best.

Have you been taken to Court before by any chance over this debt?

shellyboo · 27-05-2009 2:13pm

curehead wrote: »

will there be a court case or will i be able to set up some kind of payment plan ?
thanks in advance .

I have no idea, but I can tell you that it's far better to pre-empt these things. Call the cc company and ask them if it would be possible to set up a payment plan, explain to them your circumstances. Don't let it get to court, do everything you can now to reach a reasonable compromise with them - that way, if it does go further, you can be seen to have made an effort to reach an agreement with them and taht you are willing to pay them back.

Good luck!

curehead · 27-05-2009 2:15pm

just by letter saying i have to pay it in full in the next 21 days ' i cant even pay interest never mind whole thing

MysticalSoul · 27-05-2009 2:16pm

Was the €300 a month the minimum payment, or did you agree on a higher per centage previously?

It would be worth your while contact MABS as well, as they can try and negotiate things for you.

partyguinness · 27-05-2009 2:25pm

This seems strange.

Its not like you are not paying anything or have ignored it for months.

Have you been to Court about this already and how much is owing?

curehead · 27-05-2009 2:27pm

will give them a ring so see if i can sort something out thanks

3greenrizla's · 27-05-2009 2:45pm

Hi Curehead,

have a look at this section of askaboutmoney, there is a lot of threads on this topic.
http://www.askaboutmoney.com/forumdisplay.php?f=8

Its quite scary really, the banks seem to be going after people with a relatively low amounts of debts.

SarahMc · 27-05-2009 2:45pm

Follow up the phone call with a letter or email, just so you have a paper trail/proof of your willingness to repay the debt.

curehead · 27-05-2009 2:53pm

i will thanks . you would think in these times of recession they would have some payment plan arrangement instead of keep adding on interest everytime i make a payment it just seems to be getting higher not lower or even freeze interest until things pick up its not like i want to renege on the payments i want to pay them back it just seems impossible at the moment

thanks for all the reply's much appreciated

Joey the lips · 27-05-2009 2:53pm

Did you not have payment protection on your credit card! I am not pulling you but it seems daft going over your limit you can pay back normally without protection also if you owe 300 a month your o/standing debt must be at least 3000 euro!

Would you not go to the credit union!

RiderOnTheStorm · 27-05-2009 2:59pm

if you are a member of your local Credit Union, you could get a loan from them to pay off your credit-card debt. Much lower rate at the CU, and much easier to deal with them than a credit card co.

<edit>
....was in the middle of typing my post when Joey posted his .... great minds think alike? (y'all dont have to finish that thought)

myusernameis · 27-05-2009 3:06pm

phone up the company and explain the situation if they understand that you are willing to pay but having financial difficulties they may arrange a new payment plan,
alternately
a low interest loan from the credit union as the other users say seems like a good idea,

but watever you do, dont keep ignoring it,
Best of luck

curehead · 27-05-2009 3:40pm

i had payment protection but i changed jobs while i had the card and it seems i was meant to inform them ..... small print or something ..
anyway i rang them up they agreed to 100 a month he said it wont come down by much every month but at least it wont affect my credit rating

oh i'm not a member of credit union maybe i should join ?

myusernameis · 27-05-2009 4:03pm

well at least it wont affect your credit rating, and its a positive step in the right direction,

yeah it would be a good idea to join. far as i know, i think you have to show you have been saving as well with the credit union to be at a better chance to obtain a loan, but im not exactly 100% sure on that.

curehead · 27-05-2009 5:27pm

was never a great saver i kinda live in the moment
time for a change maybe

MysticalSoul · 27-05-2009 7:45pm

Could you ask your local bank to see if they would give you a loan, to cover the credit card, whilst paying off an amount that you can afford. It may be a long shot, as banks etc. are not giving out loans like they used to, but is still worth a shot.

dar83 · 27-05-2009 10:26pm

MysticalSoul wrote: »

Could you ask your local bank to see if they would give you a loan, to cover the credit card, whilst paying off an amount that you can afford. It may be a long shot, as banks etc. are not giving out loans like they used to, but is still worth a shot.

Even more unlikely as you'll be asking said bank to possibly cover another institutions debts. Underwriting wont be keen on that at all, let alone the fact minimum payments cant be met as it is.

Op the best bet is actually what you've done. The CC company can freeze interest and work with you a bit to reduce the debt, it's in their best interest now as well, rather than make money off your debt, they'll be able to see that getting it back in the first place is more important.

Credit card non payment what next

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