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What are you doing about your debt?


cuiseogach

Well-known member
Joined
Mar 22, 2010
Messages
1,078
About a year or so ago I posted a thread asking for advice re. my celtic tiger credit card debt (nothing out of control but wanted to sort it out).

I considered defaulting on it but decided not to do that and am paying it back- and am almost there with it as a result of long hours and sound money management.

Nobody suggested at the time - that I can remember - to apply for forbearance and to pay it back more slowly and in smaller repayments but I strongly advise people to consider this. If you go down this route I understand that you will also have interest and other fees frozen and waived so you will end up saving money in the long-run. The downside is it's on your credit rating, but so are any late repayments, and considering it can be really hard to get a loan, especially if you are on social welfare (which a lot of people are who have this type of debt) then this is a great option.

My advice to anyone with credit card debt under 10k and particularly those with more than one credit card, is to stop juggling repayments and living so close to the edge. Get forbearance (it will stay on your record for 5 years, but you will still in the meantime be showing that you ARE paying back what you owed, so you didn't default, and give yourself that 5 years to get your act together).

There ain't many strategies out there but would love to hear of any other suggestions you might have.

P.S Also, call your bank if you have been late with a repayment on your credit card. Tell them you are having a hard time, that it's getting harder and harder for you, and that you need a break and are considering defaulting as it might be easier than this struggle- this for me earned me waived fees for one month - it's worth a try.
 


Happytolearn

Well-known member
Joined
Aug 23, 2011
Messages
3,520
I've approached my bank on 4 separate occasions (3 times through a solicitor) to attempt to negotiate a mutually benficial way of detoxifying my mortgage. They have apathetically ignored me. I'm now positive their apathy and inaction will mean they will get less than they would have had they worked with me.
 

QuizMaster

Well-known member
Joined
May 26, 2004
Messages
3,208
Website
www.quizmatic.com
We're paying interest only on the mortgage, by agreement. For a 2nd 6 month period. Not sure what we'll do if they won't go for a 3rd one.
I'm hoping to string them out as long as possible, and in the meantime maybe the euro will collapse.
 

cuiseogach

Well-known member
Joined
Mar 22, 2010
Messages
1,078
Good luck with that, I can only imagine that mortgage debt is a whole different ballgame.

I hope there isn't silence on here from credit card debtors- it would be great to get a discussion going on this. My instinct tells me that people are not applying for forbearance in as many numbers as should be. It's just crazy to pay so much of a small income on repayments to the banks when you can pay less over a longer period while you get back on your feet.

Nobody is talking about this anywhere, but it's one of the major reasons people on this 188 welfare per week can't spend or live well. 188 a week should be loads for young enough single people- make it work harder for you, not the banks.

I really regret not having gotten this advice sooner myself so that I could have acted on it and saved a lot of stress.
 
G

Gimpanzee

We're paying interest only on the mortgage, by agreement. For a 2nd 6 month period. Not sure what we'll do if they won't go for a 3rd one.
I'm hoping to string them out as long as possible, and in the meantime maybe the euro will collapse.
Seriously?
 
G

Gimpanzee

There ain't many strategies out there but would love to hear of any other suggestions you might have.
I know this will sound preachy, but it can't be said often enough - credit card debt should be seen as a legit moneylender racket. If at all possible, borrow money from a CU or where ever, pay off the cc debt and cut up your card. Arsing around with forebearance, delayed payments and waived fees isn't addressing the problem at all.
 

zakalwe1

Well-known member
Joined
Oct 3, 2008
Messages
5,305
About a year or so ago I posted a thread asking for advice re. my celtic tiger credit card debt (nothing out of control but wanted to sort it out).

I considered defaulting on it but decided not to do that and am paying it back- and am almost there with it as a result of long hours and sound money management.

Nobody suggested at the time - that I can remember - to apply for forbearance and to pay it back more slowly and in smaller repayments but I strongly advise people to consider this. If you go down this route I understand that you will also have interest and other fees frozen and waived so you will end up saving money in the long-run. The downside is it's on your credit rating, but so are any late repayments, and considering it can be really hard to get a loan, especially if you are on social welfare (which a lot of people are who have this type of debt) then this is a great option.

My advice to anyone with credit card debt under 10k and particularly those with more than one credit card, is to stop juggling repayments and living so close to the edge. Get forbearance (it will stay on your record for 5 years, but you will still in the meantime be showing that you ARE paying back what you owed, so you didn't default, and give yourself that 5 years to get your act together).

There ain't many strategies out there but would love to hear of any other suggestions you might have.

P.S Also, call your bank if you have been late with a repayment on your credit card. Tell them you are having a hard time, that it's getting harder and harder for you, and that you need a break and are considering defaulting as it might be easier than this struggle- this for me earned me waived fees for one month - it's worth a try.
congratulations on the financial discipline...you'll find thats the last time you go into the red and will be a net saver in future (if you learn from your mistake).

I was in a similar position between 2004 to 2006 and replaced a term loan and credit card debt with another term loan (i was barely making minimum repayments and was overspending by a good bit). the lessons learnt meant that i have been a net saver all through the recession and have built up a nest-egg over the past 6 years. of baldy noonan thinks he's getting his mitts on my cash then he has another thing coming...i've scrimped and saved (havent bought a suit or coat in years and have been mending my clothes etc) for my money and its not going to keep some fat retired civil servant in a 100k plus pension....
 

QuizMaster

Well-known member
Joined
May 26, 2004
Messages
3,208
Website
www.quizmatic.com
Seriously?
Well we don't have too many options. Maybe they'll let us pay interest only indefinitely. Maybe we can pay some principal and some interest. Maybe they'll forgive us a bit. Maybe they'll give us an incentive to give up the tracker (though it would want to be bloody good). Maybe we'll get rich. Maybe they'll become part owners and we be part tenants. Maybe they will repossess and make us full tenants. Maybe they'll kick us out. Maybe we'll get a lodger to offset the mortgage. Maybe we'll start renting out in the summer and live God knows where meantime. We are surrounded by nice beaches. Maybe something I haven't thought of will happen.
 

cuiseogach

Well-known member
Joined
Mar 22, 2010
Messages
1,078
I know this will sound preachy, but it can't be said often enough - credit card debt should be seen as a legit moneylender racket. If at all possible, borrow money from a CU or where ever, pay off the cc debt and cut up your card. Arsing around with forebearance, delayed payments and waived fees isn't addressing the problem at all.
It doesn't sound preachy at all, it just sounds like you have a chip on your shoulder or that you are insecure if you feel the need to post that on this thread!

Fyi when a person is on a low income they can't just get another loan. Yes of course the card is cut up, that's a given here, what I'm saying is that the best solution for those on low income is forbearance - paying back smaller amounts over longer period.

If you have a better solution for those in this situation, post it, if not then carry the chip elsewhere ;)
 
M

MrFunkyBoogaloo

Defaulted on a small CC debt 3 years ago. Paid down all other debts.
 

And So I Said

Well-known member
Joined
Feb 19, 2012
Messages
3,450
About a year or so ago I posted a thread asking for advice re. my celtic tiger credit card debt (nothing out of control but wanted to sort it out).

I considered defaulting on it but decided not to do that and am paying it back- and am almost there with it as a result of long hours and sound money management.

Nobody suggested at the time - that I can remember - to apply for forbearance and to pay it back more slowly and in smaller repayments but I strongly advise people to consider this. If you go down this route I understand that you will also have interest and other fees frozen and waived so you will end up saving money in the long-run. The downside is it's on your credit rating, but so are any late repayments, and considering it can be really hard to get a loan, especially if you are on social welfare (which a lot of people are who have this type of debt) then this is a great option.

My advice to anyone with credit card debt under 10k and particularly those with more than one credit card, is to stop juggling repayments and living so close to the edge. Get forbearance (it will stay on your record for 5 years, but you will still in the meantime be showing that you ARE paying back what you owed, so you didn't default, and give yourself that 5 years to get your act together).

There ain't many strategies out there but would love to hear of any other suggestions you might have.

P.S Also, call your bank if you have been late with a repayment on your credit card. Tell them you are having a hard time, that it's getting harder and harder for you, and that you need a break and are considering defaulting as it might be easier than this struggle- this for me earned me waived fees for one month - it's worth a try.
fair dues
 

Niall996

Well-known member
Joined
Dec 5, 2011
Messages
12,126
I have a bot of a shamful cc approach. I owe about 7K on a card for maybe three years now. Every other debt is all in hand, no issues, but I can't bring myself to get this one down. I know I'm paying way over the odds, I should have converted to a term loan. I pay of the minimum amount evedry month, the card still works, my credit rating is solid but it costs about 170 quid a month most of which is interest. Someday I'll sort it! I'm putting off the pain as long as possible.
 

PUFF DADDY

Well-known member
Joined
Jul 3, 2009
Messages
3,003
About a year or so ago I posted a thread asking for advice re. my celtic tiger credit card debt (nothing out of control but wanted to sort it out).

I considered defaulting on it but decided not to do that and am paying it back- and am almost there with it as a result of long hours and sound money management.

Nobody suggested at the time - that I can remember - to apply for forbearance and to pay it back more slowly and in smaller repayments but I strongly advise people to consider this. If you go down this route I understand that you will also have interest and other fees frozen and waived so you will end up saving money in the long-run. The downside is it's on your credit rating, but so are any late repayments, and considering it can be really hard to get a loan, especially if you are on social welfare (which a lot of people are who have this type of debt) then this is a great option.

My advice to anyone with credit card debt under 10k and particularly those with more than one credit card, is to stop juggling repayments and living so close to the edge. Get forbearance (it will stay on your record for 5 years, but you will still in the meantime be showing that you ARE paying back what you owed, so you didn't default, and give yourself that 5 years to get your act together).

There ain't many strategies out there but would love to hear of any other suggestions you might have.

P.S Also, call your bank if you have been late with a repayment on your credit card. Tell them you are having a hard time, that it's getting harder and harder for you, and that you need a break and are considering defaulting as it might be easier than this struggle- this for me earned me waived fees for one month - it's worth a try.
What's the procedure re this ? to apply for forbearance and to pay it back more slowly and in smaller repayments Contact the credit card company - curious as may have to go down this road...2 CCards barely making min payment..circa combined 8k...
 

cuiseogach

Well-known member
Joined
Mar 22, 2010
Messages
1,078
congratulations on the financial discipline...you'll find thats the last time you go into the red and will be a net saver in future (if you learn from your mistake).

I was in a similar position between 2004 to 2006 and replaced a term loan and credit card debt with another term loan (i was barely making minimum repayments and was overspending by a good bit). the lessons learnt meant that i have been a net saver all through the recession and have built up a nest-egg over the past 6 years. of baldy noonan thinks he's getting his mitts on my cash then he has another thing coming...i've scrimped and saved (havent bought a suit or coat in years and have been mending my clothes etc) for my money and its not going to keep some fat retired civil servant in a 100k plus pension....
Congrats to you on that, it feels great to be rid of the burden of debt and actually have money to spend and save. Absolutely agree, lesson learned and it could have been far worse of course.

I think the least we can do is advise others and help them realise they have options other than putting all their income into repayments. It seems great to live on nothing, pay it off faster, but I think it takes too much of an emotional toll if that's kept up for too long. I did that for ages while I was studying and working part-time but it has taken me the benefit of hindsight to realise that I went too hard with the repayments and I could have made life easier for myself by going for forbearance.

Then again, like you, it's really taught me some great lessons and I've never been as serious about money and am sorted now with work, etc. Every cloud and its silver lining!

It's just that forbearance is always talked about in relation to mortgages when we need to get it into the credit card debt discussion (which isn't even happening anywhere except for odd comment by Jill Kerby, Constantin Gurdgiev, etc.) Which is mad, it's a huge issue for people now.
 

cuiseogach

Well-known member
Joined
Mar 22, 2010
Messages
1,078
What's the procedure re this ? to apply for forbearance and to pay it back more slowly and in smaller repayments Contact the credit card company - curious as may have to go down this road...2 CCards barely making min payment..circa combined 8k...
Just ring your bank PuffDaddy, they will give you the number for the personal credit department within the bank, and just tell them your income is not enough to allow you to pay your basic bills and to meet all repayments and that you need to get forbearance. You can tell them you have more than one debt, that it all adds up to 8k, that you can't get a loan to cover both, and that you therefore need help and forbearance.

They will post you an income and expenditure form which you fill out and they will need evidence of your low income and your bank statement showing last 3-6 months transactions. Basically you just prove you don't have enough income. If you are on the dole then obviously you have a strong case but similarly for low paid workers for part-time workers.

You will need to offer to pay back a certain amount each month that you can afford to pay. The bank will probably have a minimum allowed such as 20 euro, but you can offer to pay back whatever suits you upwards of that. Be straight about it and show you want to pay it back.

It will take about 3 weeks probably but well worth it. Makes no sense killing yourself for the banks. This way helps you both.
 

EUrJokingMeRight

Well-known member
Joined
Sep 28, 2009
Messages
11,832
Credit card? Interesting concept.

That would suggest that if you spend your credit that you owe nothing....

'debt card 'would be more apt and would be a more accurate description of the product.

Although selling a 'debt card' would be a 'mare for the morkeshing type depts.
 

Mrwoody

Well-known member
Joined
Jan 24, 2011
Messages
1,875
Had credit card maxed out at 4k sent the bank a letter canceling it and told them i will pay back the balance at €20 per month by direct debit but only if the balance is frozen at the 4k. they said fine and sent me out a direct debit mandate for the €20 a month that was a year ago.
 

cuiseogach

Well-known member
Joined
Mar 22, 2010
Messages
1,078
Had credit card maxed out at 4k sent the bank a letter canceling it and told them i will pay back the balance at €20 per month by direct debit but only if the balance is frozen at the 4k. they said fine and sent me out a direct debit mandate for the €20 a month that was a year ago.
Fair play to you. Did your bank ask you for evidence of your non-ability to repay more than 20euro per month? I know that Halifax require the income and expenditure form and 3 months bank statement and then evidence of your low income.

You must have spoken to them after you had posted the letter to set up the direct debit for 20euro a month and to sign off that forbearance agreement?
 

Mrwoody

Well-known member
Joined
Jan 24, 2011
Messages
1,875
Fair play to you. Did your bank ask you for evidence of your non-ability to repay more than 20euro per month? I know that Halifax require the income and expenditure form and 3 months bank statement and then evidence of your low income.

You must have spoken to them after you had posted the letter to set up the direct debit for 20euro a month and to sign off that forbearance agreement?
I sent an income and expenditure and copy of payslips and p60 with original letter all showing my income had dropped by 60% i have also done the same with two personal loans paying them at €20 per month,all of these called me when they received the information and had a chat but i told them my situation and that was all i had, i also told them they could take me to court if they wanted but nothing like that was even mentioned. i am working on my mortgage to rearrange that but its going to be difficult, i will wait for the personal insolvency/ bankruptcy thing to get up and running and then tackle all of the above again.
 

PUFF DADDY

Well-known member
Joined
Jul 3, 2009
Messages
3,003
Just ring your bank PuffDaddy, they will give you the number for the personal credit department within the bank, and just tell them your income is not enough to allow you to pay your basic bills and to meet all repayments and that you need to get forbearance. You can tell them you have more than one debt, that it all adds up to 8k, that you can't get a loan to cover both, and that you therefore need help and forbearance.

They will post you an income and expenditure form which you fill out and they will need evidence of your low income and your bank statement showing last 3-6 months transactions. Basically you just prove you don't have enough income. If you are on the dole then obviously you have a strong case but similarly for low paid workers for part-time workers.

You will need to offer to pay back a certain amount each month that you can afford to pay. The bank will probably have a minimum allowed such as 20 euro, but you can offer to pay back whatever suits you upwards of that. Be straight about it and show you want to pay it back.

It will take about 3 weeks probably but well worth it. Makes no sense killing yourself for the banks. This way helps you both.
Thanks for that, I think it maybe a road to take in 2013..
 

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