Resolved Question
What will happen if I stop making payments on my credit card?
It's a long story but I have had a credit card since I split with my ex 10 years ago. Most of the money on the card was spent buying things for a rented flat as he kept everything. i have been paying the minimum amount ever since. Ive been living abroad for 7 years but I have still kept paying the payments. Im now in a position where I just cannot afford it. I have written to them twice offering a reduced payment but they just keep sending me arrears statements. Whenever I have contacted them I just cannot get any sense out of the operator, they just don't seem to care. I have now received a letter saying they are refusing my reduced payment. I feel they are being very unfair, at least I am trying to pay something, surely they should accept this?
Additional Details
I think they are being unfair because I have written to them explaining I am now in a position where I work part time for 6 months of the year. I am not in the UK and earnings are nothing like I used to earn (about a tenth!!) I think if someone is genuinely trying to pay at least something they should accept it rather than default them.
1 week ago
Instead of people just popping in and thumbsdowning the answers, why not leave an answer at the same time?
1 week ago
Best Answer - Chosen by Asker
If I were you I would make your reduced payment as you have offered it to them. The only thing they can do is sell your debt onto a debt recovery firm, then you will have to communicate with them instead. Make sure the interest is stopped and offer the amount you can reasonably pay. Make sure you keep a note and a copy of all correspondence between you. That way if they decide to take you to court for a CCJ you can defend it because you have made a reasonable offer of payment. I can't understand why the credit card agency is acting like this as normally they are quite willing to help if you are having problems. Have a look at this website also, loads of very useful info on there and template letters you can use and it's completely free,
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Other Answers (3)
- Sorry but I don't understand why you think they are being unfair, all they are doing is exactly what they told you they would do under their terms and conditions which you agreed to.
Having said that you need to talk to a manager and see if they have a hardship program, if not then you have to make a decision weather to pay for the basics like food, rent, utilities etc. or try and make your credit card payments.
The worst that can happen is they will be charged off and sent to collections. While this will trash your credit it will also give you the opportunity to settle for less then you actually owe.
If the debt is large enough they could sue you and seek a judgment from the courts, if they win they can attach your bank accounts, garnish your wages (if your State allows it) and file liens on any real property you may own like cars, boats, land and homes.
Good luck.Source(s):
- You got the credit card from a bank? Banks do not go to court because they would then have to legally justify their charges and this they will not do. They will issue a default notice which will trash your credit record for the next six years. They will spend five years writing to you and adding charges to the account. They will bump up the outstanding amount fourfold and then sell the debt for a third of it's value - result for them. The underhanded b******s who buy the debt are the real problem. If they attempt to communicate with you ignore them at all costs. Change your phone number and address before this happens, if possible, and do not ever acknowledge the debt.
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