Credit card debt

[boo2001]

Hi,

I am trying to work out the best way forward with the CC debt I have.

I have a number of cards that I have been unable to pay off since redundancy and my circumstances have now changed beyond recognition to when the cards were active (I now have 2 babies and am unable to afford childcare and have post natal depression etc etc it goes on but the crux is, I cannot pay back these debts).

I have been in default now for 2.5 years paying a token payment of £1 a month.

My debts are with:
Barclaycard approx 14000
RBS approx 8000
Arrow approx 15000.

There is a chance that a relative would lend me the money for a full and final settlement but having spoken to Stepchange they say the minimum amount be be 75% which I would not be able to borrow!

Any advice would be much appreciated, I do not know which way to turn or how to end this and move on!!

[Diana M]

Re: Credit card debt

When did you open these accounts and could it have been before April 2007?

I see the Arrow debt is £15k so who was the original creditor for that one?

(Have the other two been sold on?)

Di

[Debt Camel]

Re: Credit card debt

Are you buying or renting?

[boo2001]

Re: Credit card debt

Hi - the original arrow debt was with virgin credit cards - they were all opened post 2007.

The other 2 haven't been sold on and I am renting a property (hence I do not want a bankruptcy on my file should I need to rent another property in the future).

Thank you for your replies x

[nemesis45]

Re: Credit card debt

Hi,

I am trying to work out the best way forward with the CC debt I have.

I have a number of cards that I have been unable to pay off since redundancy and my circumstances have now changed beyond recognition to when the cards were active (I now have 2 babies and am unable to afford childcare and have post natal depression etc etc it goes on but the crux is, I cannot pay back these debts).

I have been in default now for 2.5 years paying a token payment of £1 a month.

My debts are with:
Barclaycard approx 14000
RBS approx 8000
Arrow approx 15000.

There is a chance that a relative would lend me the money for a full and final settlement but having spoken to Stepchange they say the minimum amount be be 75% which I would not be able to borrow!

Any advice would be much appreciated, I do not know which way to turn or how to end this and move on!!

Stepchange always say the same thing a reasonable starting point to start negotiation for a full and final settlement is 10 -15% of the balance not a good idea to go in at 75% as starting point, when the creditor realistically won't get very much due to your circumstance perhaps as little as £1 per month for the foreseeable future. Yes the amounts are large and the creditors/ debt purchasers will moan but it's worth trying.

Any offer needs careful wording.

nem

[Debt Camel]

Re: Credit card debt

I am renting a property (hence I do not want a bankruptcy on my file should I need to rent another property in the future).

I was actually asking about buying/renting because as you are renting then it is much more likely that a low offer F&F offer would be accepted. After 2.5 years I would be thinking of 20-25%,

But if this is rejected than you should consider bankruptcy. The money from your relative could be better used in bankruptcy fees and to provide a 6 month deposit - that resolves most problems with renting. Better to bite the bullet now than struggle on for years with the same end result.