Credit Card Debt

solarplexus

hi, All,
Ive been banking with same back for past 11 yrs. had credit card attached to account . i had it always had it to pay 100 % everyone money for 1st 10 years. Then i lost my job owing 2.3k most of wish is interest. they have sold it to dept collecting agency.

So I ignore and if so what happens? or could i may a deal and if so

what deal would be seemed acceptable

Wils110

Debt company will make the deal straight up with you...had a phone bill 330 or so they took 260

krd

solarplexus wrote: »

So I ignore and if so what happens? or could i may a deal and if so

Tell them you have brain cancer...it worked for me.

what deal would be seemed acceptable

They're just bums. It won't make a difference to your credit rating (which is screwed). BUT check to see if there was any insurance on the original debt - many people were "missold" insurance ( told it would cover loss of employment etc - when it was just a scam - the "insurance" was a security derivative so the card companies could raise more cash and lend more money - and part of the "security" was the "insurance" never paid out - and then eventually they got bailed out - but you didn't.)

These days, when anyone asks me an awkward question about anything, I just tell them I'm fighting cancer. ...It shuts people up. ....But now Lance Armstrong has f'ked it up for the rest of us, and I'm going to have to tell people I have malaria or something.

I need a disease........Anal Trombosis........something fatal sounding.

solarplexus

krd wrote: »

Tell them you have brain cancer...it worked for me.




They're just bums. It won't make a difference to your credit rating (which is screwed). BUT check to see if there was any insurance on the original debt - many people were "missold" insurance ( told it would cover loss of employment etc - when it was just a scam - the "insurance" was a security derivative so the card companies could raise more cash and lend more money - and part of the "security" was the "insurance" never paid out - and then eventually they got bailed out - but you didn't.)

These days, when anyone asks me an awkward question about anything, I just tell them I'm fighting cancer. ...It shuts people up. ....But now Lance Armstrong has f'ked it up for the rest of us, and I'm going to have to tell people I have malaria or something.

I need a disease........Anal Trombosis........something fatal sounding.

Just read your post and in these dark days it has put a smile on my face.. You surely have the right attitude.. thanks so much.... fook it! I could have brain cancer and then wouldn't everything be put into perspective...

Thanks again..

Tom Young

Hi OP and KRD:

Having a credit card comes with terms and conditions. One such term is that you are expected to pay interest on cash advances and purchases.

Now, I take the point that times are tough, the banking system is a mess, PPI has been mis-sold in many instances and it's all depressing.

Here comes the but ....

If you bought stuff on credit, got the benefit for it, logically owe the money, then pay it back. A judgment is not worth the paper it's written on, so start making repayments to reduce the debt to zero.

Further, making claims that you're terminally unwell, when you are actually not, to me is bad energy/karma. Like the goods bought in credit, the universe wants its money back. It doesn't want you to misrepresent a situation, which actually may bring further botheration at a later stage.

Anyway, as far as the charter goes, we don't do legal advice. Practical advice, avoid court/judgements, speak to debt collectors, try get a debt haircut, make repayments to clear down debt. Everyone happy.

There's no escaping the knowledge that credit cards come with high interest, goods and services were procured on those terms and that is it.

Fuh Q

I was self employed for 14 years, earning good money and never had any issue paying anything off, I lost my business and eventually ended up on the dole, I only received half payment because my wife works part time.
Anyway I had built up a credit car debt of €12,500. I couldnt pay anything, the debt was sold off to a UK company who got nothing from me but abuse.
Then after hearing nothing for months a different company contacted me and told me they had just bought the debt and asked me for €9000 to settle, I laughed for ages, told them to **** off. I have heard nothing for about 6 or 7 months now. I dont know where the debt is gone, I dont know who will be chasing me next.
Before all the morally correct get on their high horses, I know its my debt, I know it should be paid back but you cant get blood from a stone. I cant pay my mortgage either and have no doubt that I am in major financial trouble. I will never earn enough to pay back the credit card or my mortgage and there is nothing I can do about that, I need debt forgiveness.
I refuse to deal with the debt collection agencies as I never entered into any agreement with them, I got the credit card from the bank and I will only discuss it with them.
OP, if you can pay something then pay something, it may keep you out of trouble. I know a guy who owed just over €900 on a card and he settled the account with a deal for €250.

barman linen

While I note the comments above about paying back the money....and posters acknowledging the debts I do feel that this is a commercial arrangement between a debtor and a company that can be negotiated. Times have changed and a little confidence can alleviate the situation.

I see a good strategy as follows......

When called by the bank/CC company agree that you owe the debt and ask them to freeze the interest and agree to a reduced monthly payment within your means. By acknowledging the full debt they wont take you to court. They may or may not agree to a reduced payment but you force them to stop bullying you by acknowledging and offering a payment within your means.

Eventually they will hand the debt over to a debt collection company and you restart the process. The debt collection company will be more likely to accept a short settlement as they bought the debt for probably 15% of the amount. Dont avoid their calls but consistently reiterate your offer of a reduced payment. If you have the means offer a reduced lump sum to clear the total amount.

There is no avoidance of the debt but a negotiated agreement can end the matter.

Your Credit history is damaged by now but since the banks arent lending and you are not in a position to borrow anyhow this should not be a problem. Low credit scores will become more common so all boats will be lowered.

We need to stop being afraid of the financial institutions that got us into this mess.

OU812

My buddy is paying aib €20 a month on 4.5k. They cancelled the card & froze the interest. That's nearly 18 years before they'll be paid off.

They told him his credit rating would be damaged. He replied that he could barely pay his mortgage so borrowing money in the future is not high on his priority list

Eircom_Sucks

i know a guy who had 3 kids with 3 diff women by the time he was 21 complete dirtbag , has since been locked up for holding onto a stash of drugs

anyway my point is he had 3 or 4 credit cards with diff banks and maxed them all out , because his then gf was claiming social housing as a single parent and he was living there ( and wasn't meant to be ) he put the cards in that address and then ended up moving around the area with her to better houses ( not because of debt letters ) just because they could , he owed like 9k and has never paid it back because the banks can't find him or locate him , im sure if they check the prison system them might find him

im not saying don't pay your debt ( please do if you can ) or agree a small amount a month etc , if im right once you make an effort to pay the debt however little a month then they can't take you to court because at least your making an effort

plus your not the only person in ireland in this situation so don't panic , it will sort itself out if your honest with the bank

Eircom_Sucks

OU812 wrote: »

My buddy is paying aib €20 a month on 4.5k. They cancelled the card & froze the interest. That's nearly 18 years before they'll be paid off.

They told him his credit rating would be damaged. He replied that he could barely pay his mortgage so borrowing money in the future is not high on his priority list

isn't that just for 2 or 3 years before its wiped clean ?

westies4ever

Eircom_Sucks wrote: »

isn't that just for 2 or 3 years before its wiped clean ?

nope - it takes five years for it to clear AFTER the debt has been cleared in full.

Eircom_Sucks

westies4ever wrote: »

nope - it takes five years for it to clear AFTER the debt has been cleared in full.

really ??

that's poxy

OU812

Probably 20-25% of the country has a bad credit rating at this point - all you need is one missed or late payment.

I don't think it's anything to be too concerned about.

krd

Tom Young wrote: »

Having a credit card comes with terms and conditions. One such term is that you are expected to pay interest on cash advances and purchases.

Yes, well. The terms and condition of the borrower can radically change. Many people who took out small loans, or had credit cards did not abuse them and were frugal. They took these loans out when they were in a good position to repay the debts. The Great Recession, has had a catastrophic effect both on the lives of people, and their ability to earn an income.

All kinds of things happened to people. Many people running small businesses found their customers going bust and unable to pay them money owed. They may have used credit cards to pay their suppliers.

Many people, who had kept their noses clean and their heads down all their lives, found themselves trounced out of stable jobs, with blackguarding. They may have used credit cards or overdrafts to help them get through what they believed was a temporary crisis. Instead for many, the temporary crisis became more permanent.

I've been in the position where I've been screwed over by a dodgy employer, and left very high and very dry, and used my credit card to get through the crisis, and within a short time I had other employment and the crisis was over. In a stable economy, it's not an ideal thing to do, but a crisis is a crisis.

Now, I take the point that times are tough, the banking system is a mess, PPI has been mis-sold in many instances and it's all depressing.

Being in a permanent state of depression is not doing anyone any good. And the real villains are the banks, not the little guy who borrowed a few thousand on his credit card. It was the 'all hat and no cattle' Irish "billionaires" who destroyed the economy.

Here comes the but ....

If you bought stuff on credit, got the benefit for it, logically owe the money, then pay it back. A judgment is not worth the paper it's written on, so start making repayments to reduce the debt to zero.

Yes, if you have the ability to repay these debts.

And repaying the original borrower is a far different scenario than paying the debt collection agencies, who have probably bought the debts for pennies, and really have no moral basis to collect.

Further, making claims that you're terminally unwell, when you are actually not, to me is bad energy/karma. Like the goods bought in credit, the universe wants its money back. It doesn't want you to misrepresent a situation, which actually may bring further botheration at a later stage.

We're all terminally unwell. And this crisis has given people very real health problems. People like to believe severe clinical depression is something that is only caused by some weakness in the individual - it comes out of thin air. The reality is people have been hammered into it, and there have been scores of suicides over debt. There are tons of bsatards out there, who through their blackguarding have destroyed people and their mental health. Debt agencies chasing people for debts they cannot pay is not helping.

There is a lot of bad karma around.

Like the goods bought in credit, the universe wants its money back.

You've been reading the bloody "Secret" haven't you? Well, that is not how it works at all. Through factional reserve banking, banks literally pull money out of thin air - there are limits to how they can do this to stop currency debasement but that's literally what they do. And for the repayment of debts, the money supply must grow, and money must circulate - if the money supply contracts, it means some of the debts cannot be repaid.

Anyway, as far as the charter goes, we don't do legal advice. Practical advice, avoid court/judgements, speak to debt collectors, try get a debt haircut, make repayments to clear down debt. Everyone happy.

Under ordinary circumstances, that would be the thing to do. But this is an extraordinary period. It's not people mismanaging their finances. It's not a little blip, where they should or can just knuckle down for a while and get their debts in order.

Simply, there is not enough money circulating in the economy, for businesses to be run, for people to earn, and to pay all the debts.

There's no escaping the knowledge that credit cards come with high interest, goods and services were procured on those terms and that is it.

We're not talking about irresponsible teenage girls getting their hands on a credit card and going mad. Most of the people in trouble are not the gobshoysh who got the millions in loans to "invest" in a ghost estate - in most cases those people are not even being seriously pursued. And the government is trying to protect them through insolvency legislation - they wanted to raise the limit to 10 million. Now, it's at 3. And it's these bollocky types they're trying to protect.

You have bollockies in NAMA getting paid hundreds of thousands. They're being given millions in "working capital" (in some cases hundreds of millions) which they've been using to pay other bollockies in the property business. Estate agents are being paid to stick up "sold" signs outside turkeys no one will ever buy. Bust developers are getting cash thrown at their subsidiaries, to refurbish buildings that never did, and never will have tenants - and the bollocky estate agents have been putting "LET" signs outside the buildings when done - but you'll notice the tenants never materialise. You have bollockies in the banks still getting boom time wages, when they are the people responsible for the bust.

Many of the people with credit card debt problems are the small people who were frugal. And the feckless bollokies are still high on the hog.

The crisis is not being caused because of selfish spendthrifts who just won't pay up.

Tom Young

Glad you support my view that being as reckless as the lenders is not the answer. Though I see we differ on the conclusions.

barman linen

Tom Young wrote: »

Glad you support my view that being as reckless as the lenders is not the answer. Though I see we differ on the conclusions.

The lenders negotiated deals with the Government.....each individual should have the confidence to negotiate their own deal with each lender. It works.

krd

Tom Young wrote: »

Glad you support my view that being as reckless as the lenders is not the answer. Though I see we differ on the conclusions.

The substantial problem is systemic. And the systemic problems were not caused by the small borrowers who now cannot pay. In the vast majority of cases, when those small loans were made, neither the borrower nor the lender were being feckless.

And debt delinquency is just a fact of life, and all businesses factor it into their costs. Credit card companies charge high interest rates as they are factoring delinquency into the price - it's not the usurious gouging it often seems. And mortgage companies, before the financial "wizardry" of Credit Default Swaps, and other bogus instruments of financial destruction, would simply use statistics to factor delinquency into the price of their mortgages. It's a very stable way of doing things.

Delinquency is just a normal function of an economy. You cannot have an economy where all debts are repaid. AND, very importantly, the money lost through delinquency in a well functioning economy, has it's own way of winding its' way through the universe back to the pockets of the people from whom it went delinquent. It aids growth.

One person going delinquent may be down to some moral failing. A million, and it's systemic.

All this moralising is getting none of us anywhere.

We need to use our imaginations to get us out of this jam. And my friend - we're in a jam - all of us.

And tomorrow, I have call a utility over a credit issue. And I'm racking my brain for a good disease, to get this particular wolf off my back - Brazilian Bluefoot....Dundalk Dengue..........Freckles?........I think they've got me on file, and may be suspicious I'm not dead yet.........But I'm getting there - we all are.