# What happens if I stop paying for 3-6 mnths? unsecured debt (~50k) income 55k.



## scarednow (21 Apr 2011)

We have a lot of unsecured debt (~50k) and also a healthy income (55k p.a). We have a credit card which is being serviced at 150 per month interest and i'm just wondering how long I would 'get away' with not paying my other loans (no problem increasing payments after a while to clear arrears), and paying off this blasted 10k credit card debt...

This is a question and, as my last post, don't need to lecture me on morals. My health and marriage are now at risk (recently admitted to hospital with heart problems and stress caused by my debt and FYI i'm 35 years old).

I need to sort this debt out but if I was to lose my job through ill health, the banks would have a lot less than 55k p.a. to take the repayments from

Any help appreciated
Cheers


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## z107 (21 Apr 2011)

If the debt is unsecured, then I'd go for it.

Pay a token amount off the unsecured debt, and hammer the high interest debt (credit card). In this scenario, consider the alternatives.
If you continue as you are you'll have more marriage problems, unending debt and health issues.

He who dares wins.

I suppose the other debters wont like it, but so what? How long would it take to get to court? Would it even go to court? You'll probably have the high interest debt paid off by then.


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## idkwatmi (21 Apr 2011)

What steps have you taken to discuss your debts with creditors? can they setup some kind of plan that would allow you to pay a certain amount off your debts so that you can make some way through paying them off.

I would not suggest you dont pay your debts for a few months as i dont know what this would achieve.


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## scarednow (21 Apr 2011)

Thanks for your posts. Current debt repayements (leaving us with zero to live on) are :

Bank Loans :504 p.m
Credit Cards : 270 p.m (MBNA increase which is a good thing IMO)
Mortgage : 900 p.m. (Which I'm reluctant to stop paying)
Credit Union : 425 P.M

I'm reluctant to stop paying either CU or Mortgage so would be putting an extra 500 per month off CC, which would make a hole (certainly for 6 months) in the 10k debt. I borrowed the money and will pay every cent back but why cant the terms be extended over say 20 years - If I could get this as a top up for say 500 per month (excluding mortgage) I would be delighted.

Another thing that has come to light is that even though it is my debt - family members who have over 80k in savings (minimum that I am aware of), just aren't interested. I would happily pay the 500-600 per month until the debt was paid but blood is thicker than water (my A*se)


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## scarednow (21 Apr 2011)

Sorry Credit Cards should be 370PM


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## Greta (21 Apr 2011)

Have you talked to MABS?

Also any chance to boost your income, even if only temporary? - getting a lodger under rent a room scheme, getting extra work or selling unwanted stuff on ebay or car boot sales maybe? 

You may benefit from filling in the template in the money makeover section of this forum, to see how else you might be able to cut your expenditure, to free up money to throw at the credit card.


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## wbbs (21 Apr 2011)

MABS will not be a lot of use in this case as what OP wants to do is concentrate on CC debt, MABS would advise paying debts pro rata to income which may not give the solution needed.   

Could you maybe go interest only for 6 months or get a mortgage break to enable you pay down the credit card?   Might not work if you are in negative equity though.

You will mess up your credit rating but maybe this doesn't matter, if not then I would do as one poster suggested and pay token amount while throwing all available money at credit card bill.   Nothing serious will happen for 3 months or so anyway.

Ideally you would get bank agreement to reduce mortgage repayments, same with credit union and loans and concentrate on credit card, they may agree to this as it is a sensible solution, worth asking, if they don't then just do it anyway.


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