# Credit Card Debt..So Worried



## Longroad (26 Jul 2010)

Hello.

I am new to this forum but really need advice.  Over the time I have mounted very large credit card debt (approx 21k).  Two cards with MBNA, one with Halifax and one with BOI.  I haven't been able to meet my credit card min payments so MBNA and Halifax have suggested I send in my Income and Exp details and come to a payment agreement.  What I am wondering is why on the form Halifax sent me they are looking for my car make/model details and car reg and also for my employment details?  Also wondering because I will enter a payment agreement it will effect my credit rating as far as I know and I work with a financial institution and I have a vague recollection that if I default on payments it could effect my job...does this sound correct does anyone know (I obviously don't want to ask at work if this is the case or not) and even if it is I don't see any way out of my situation, if I don't enter a payment agreement I will probably be taken to court I assume, if I do I'm not sure if I am risking my job...I am sick with worry and so upset and would be very greatful of any light anyone could shed on this for me or any advice please?  Thank you.


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## niceoneted (26 Jul 2010)

It's difficult but you have to try to worry less. 
I am not familiar with such forms but perhaps they are looking for car details because if they saw you were driving a 09 5 series BMW that you could perhaps sell it and clear the debt and still have money for a run around. 
Can you be general in the employment details as in clerical worker and not name your employer and just put in what you earn and whether it is contract or permanent etc. 
Also try doing up the money makeover section here http://www.askaboutmoney.com/showthread.php?t=61289
you might get ideas on where you can cut back. 
Cut up the cards. Also if you could list how much you owe to each and what rate of interest your on. 
How about BOI have you written to them too? Are they stopping adding interest?


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## Longroad (26 Jul 2010)

Hi niceoneted, thanks for the advice.  I work in IT centre in one of the leading banks, earn 2k a month and am permanent, have been with them years.  My car is nearly 8 years old and certainly wouldn't make much diff to my debts. I owe 3.5k to BOI (prob 3,600 at this stage as I can't make min payments.......have written to them but they have refused to freeze interest or accept the payment I offered, I am giving them this anyway even though they are looking for more but I can't afford it).  I owe 4k (well 4,300 now due to interest etc.) on one MBNA, 6,500 on another and then 7.5k (prob a bit more now due to interest etc.).  Also do you know what I can do if the payment agreement they suggest is more than I can afford?  Thanks again for your help, my head is reeling from it all and I can't stick it anymore.


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## Marietta (26 Jul 2010)

Would it be possible for you to take out a personal loan from a bank or credit union in order to pay off the credit card debts or to approach family members for help?


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## Longroad (26 Jul 2010)

asking family is not an option.  I would love if i could apply for a loan but I only bank with the company I work with (already have a loan with them, even though it's almost paid, only 3 payments left) I doubt they will give me another loan, especially for that amount as things have tightened up so much.  I was hoping to get one with CU but I haven't used my account with them in a long time and have no savings, even though I did have a loan of 4k with them a few years back which I paid in full in only 6 months but I doubt this would have much bearing on any loan I would look for now.  I don't know if the CU would be willing to listen to my dilema and make an exception and give me the loan but I doubt it.  I wish they would.  Thanks for your reply though.


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## wbbs (26 Jul 2010)

I suggest you make appointment with MABS, or at least have a look at their website to show you how to deal with these debts.  If you do a realistic income and expenditure form with no excess spending and offer a payment of what you feel you can afford then they should accept it.  I very much doubt it should affect your job, it is private between you and your creditors.  It will affect your credit rating but if you are not meeting minimum payments then that is affected anyway.   Are you living within your means otherwise, in other words was this debt a once off or are you unable to live with the income you have.


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## niceoneted (26 Jul 2010)

What's your disposable income once all bills are paid (not including the credit cards). If you can get the interest frozen on some of them for the time being that would be great, so fill out the forms and send them in. 

Do try the credit union even if you could get a loan for the two smaller cc balances. You'll have money from the loan your paying off in 3 months time to throw at the cc's. 

You might need to look at bringing in more money, part time job at the weekend. If you have specific skills in IT that can be sold (ie teaching people office products or how to use the internet) locally in your area. You could go in to their home. 

Bit of thinking out side the box needed I think. 

Good luck.


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## Longroad (26 Jul 2010)

I might pop into MABS on Friday, does anyone know if I need to make an appointment or can I just call in?  I contacted them before by phone, they sent out some income and Exp forms which I filled in and I never heard from them again, that was months ago.  Maybe better face to face.  I don't have an excess spending, in fact I don't spend a penny on myself really as I just simply can't afford to besides the essential, petrol, food etc.  I can just about afford approx 200 a month on credit card repayments and that is the max for now as I have a mortgage, personal loan child minding fees and then the usual bills like phone ESB etc. I am hoping that my financial situation will improve towards the end of the year but for now 200 is all i could afford.  I hope you are right that it wouldn't effect my job as I am worried enough about the debt without having consequnces on my job too.  Thanks for taking time to reply and advise.


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## niceoneted (26 Jul 2010)

I seriously suggest filling out the money makeover section as you might get some good tips on areas where you can cut back on. Well worth it.
Could you look to go interest only on the mortgage or take a mortgage break.


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## Marietta (26 Jul 2010)

Longroad said:


> asking family is not an option. I would love if i could apply for a loan but I only bank with the company I work with (already have a loan with them, even though it's almost paid, only 3 payments left) I doubt they will give me another loan, especially for that amount as things have tightened up so much. I was hoping to get one with CU but I haven't used my account with them in a long time and have no savings, even though I did have a loan of 4k with them a few years back which I paid in full in only 6 months but I doubt this would have much bearing on any loan I would look for now. I don't know if the CU would be willing to listen to my dilema and make an exception and give me the loan but I doubt it. I wish they would. Thanks for your reply though.


 

Well as the saying goes 'A dumb priest never got a parish', no harm at all in going back to the Credit Union, explain your situation and the fact you have had a very good past history with them is in your favour. If that fails do approach your company for another loan, you dont have to tell them exactly what it is for and you might just be lucky.  A personal loan would be ideal in your situation and give yourself a number of years to pay it off and be sure to cut up all those credit cards.


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## wbbs (26 Jul 2010)

MABS have waiting list for appointments so popping in wont work!   Ring tomorrow and get on the list anyway, if you have managed to help yourself by the time the appointment comes all the better.


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## Longroad (26 Jul 2010)

We took a 3 month break from our mortgage earlier this year and it really helped but only short term unfortunately.  Not sure if interest only is an option for us but I'll def check to see if it is, thanks.


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## Longroad (26 Jul 2010)

I will ring MABS in the morning, hopfully won't be waiting too long and I might call into the CU on Fri, as you said worth a try anyway.  Definitley a loan would really sort it out for me as I could pay back every month over the years and no huge interest and over limit fees etc.  I really hope I can sort something out because it is really bothering me and on my mind constantly.


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## Marietta (26 Jul 2010)

It is probably easier said than done, but try not to worry too much about it, it is very difficult when you have a mortgage and other committments.  Let us know how you get on, I think you will be ok.


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## Longroad (26 Jul 2010)

Thanks Marietta, I even feel a little bit better (or relieved) to have it off my chest and for all the advice and reassurance I got from you guys this evening, to some people my debt might not seem like a lot but to me it may as well be millions because it's just crippling me.  I am going to act on all of the advice I got first thing tomorrow and hopefully I'll get somewhere because it's really getting on top of me and getting me down now and I really want to sort it out I just didn't know how or what was the best thing to do.  I'll check back once I've got the ball rolling and let ye know how I got on.  Thank you all for your advice.


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## celestial (26 Jul 2010)

tesco have interest free credit card for six months on current card when switched, . PLease dont use it as a credit card tho just use it as a method of gettin a break from interest payments on one of your cards.. if u can get it might be worthwhile..
I am sure you are alone in this kind of problem.


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## Tessi (27 Jul 2010)

Hi Longroad

I completely understand your worry as I also have credit card debt, overdrafts, small loan and like yourself I couldn't get the anyone to freeze interest so i'd be able to some grip on the debt.  Mabs are so over burdened it is hard to get an appointment and I didnt get any reply when i emailed them about three weeks ago.  I think I'll have to let it all go to the courts and let the judge decide my repayments because my income is so small I will never be able to negociate repayments if they not going to except what i can afford.  Good luck today perhaps you'll have a better outcome than i've had with mabs. let me know how your getting on and If there is any advice you may be able to pass on to me.


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## Mrs Vimes (27 Jul 2010)

Hi Longroad,
You mention childminding fees... have you looked into Family Income Supplement to top up low wages?  Also you may qualify for a medical card if you meet the means test which at least won't have you worrying about finding Eur50 for the doctor if someone gets sick.  Maybe have a look at the keyposts in Welfare and State Benefits and see if any might apply to you.
Sybil


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## fizzelina (27 Jul 2010)

Marietta said:


> Well as the saying goes 'A dumb priest never got a parish', no harm at all in going back to the Credit Union, explain your situation and the fact you have had a very good past history with them is in your favour. If that fails do approach your company for another loan, you dont have to tell them exactly what it is for and you might just be lucky. A personal loan would be ideal in your situation and give yourself a number of years to pay it off and be sure to cut up all those credit cards.


 
Credit Unions don't lend to people for them to pay off loans to other institutions. Also you need to have a savings history so it's not correct to say there's a very good past history in the case of the OP if she has nothing saved.
OP - Don't panic. Do the income / expenditure form and write asking cr card companies to stop adding interest, MABS can help with this, make that appointment with them. Any payment amount would be fair and agreed as to being affordable by you and if you stick to that each month then slowly and surely the debt will reduce.


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## Phoenicia (27 Jul 2010)

Hi Longroad,

Dont despair of getting an early appt with MABS. Though some offices have a 2-month waiting list, i got an appt with the Bray Office within a few days of phoning - so phone around anywhere within your reach.

I am in a similar position to yourself, and have just had my first 2 meetings with MABS. I was sick with fear before going, as my credit card debt is twice your own plus i have overdrafts and other loans. With an income drop of 50 percent over the past 18 months i could cover basic living expenses but not debt servicing. I can increase income for certain months of the year, so didnt know where to start in working out what to offer who, and was terrified at the thought of being in default, having my hitherto unsullied credit rating ruined, etc, not to mention possibly ending up in court.

MABS are fantastic. They will do up a financial statement of your income and expenditure and a table of pro-rata repayment proposals for each of your creditors (not named, just numbered). If you wish to authorise them to do so, they will deal with your creditors on your behalf. 

Two problems those of us in this situation face: (1) Fear (2) What to Do. 

Since i engaged with MABS the crippling fear has reduced to only the odd niggle of anxiety. "What do Do" - you are now helped by experienced advisors and you feel supported and to some extent protected. You cant pay what you have not got. I know people with bigger debts than yours, on welfare, paying 10 euros per week to each of their creditors. Your 200 euros will be spread pro-rata, and if you get a salary increase you can then up it a bit. 

Get face to face with a MABS advisor asap. You will no longer be alone with your problem, and it will help you to stay strong as you find the way forward. 

Best of luck with it.


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## redbhoy (27 Jul 2010)

See www.getoutofdebtfree.org for alternative options to worrying about your debts.


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## Longroad (27 Jul 2010)

Hello, first of all thank you to all for your replies and advice since I was on last night posting.  Due to advice on OP I didn't contact the credit union but I did ring my Credit Card companies to tell them i would be lodging 50 into each tomorrow and that I am waiting for an appointment with a financial advisor with MABS (I rang today and was speaking to a lovely lady, she took details and brief outline of my problems, she told me the lady that makes appointments and who will be meeting me was out but would ring me back before the end of the week to oragnise a meeting, normally waiting list is 2 to 3 weeks so I am delighted).  I just wanted to give my update so far.........I am still worried because I feel so in over my head at the moment but hopefully things will get better soon.......I will let you know any updates and hopefully in doing that I might be of some help to others in my situation or similar. Thank you to the OP as well on advice re: medical card and FIS, looking into it at the moment and half ways through filling out my applicaiton for Medical card.  Thank you.


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## D8Lady (27 Jul 2010)

Longroad, just wanted to say well done on making those calls today. 
Perhaps while you wait for you appointment with MABS you could take a look at their Personal Budget sheet and weekly spending diary - [broken link removed]. 
Sometimes just writing things down can help get a handle on a situation. 
Best of luck.


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## Longroad (28 Jul 2010)

thanks D8lady, I'll check out that link straight away...feel the weight of the world off my shoulders now that I can see some sort of end to my financial worries.  Thank you. I'll be back with any updates because hopefully my story will be of some help to others who might have the same problems as me.


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## niceoneted (28 Jul 2010)

Good on you long road - hopefully it will be a short road. 
You might also want to start a spending diary to see where your money is going. It will help and you might see that you are spending money on unnecessaries. 
DO come back and let us know how things go good or bad as it will help others.


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## Longroad (14 Sep 2010)

Hi, I'm just logging in to give an update (which might help others who are in the same or similar situation).  I made an appointment with MABS, the lady was so lovely and helpful, she wrote off the credit card companies for me and now she is sending off my income and exp sheet and hoping to settle on a monthly payment amount with them then so fingers crossed they'll be agreeing to an amount I can afford if not then she'll trash it out for me with them, I am so glad that I contacted MABS and feel so much better about the situation even though it's still far from over but at least I feel it's well under control now compared to what it was.  Will post again with an update when I have one (hopefully a good update), thank you again to you all for your advice.


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## Marietta (14 Sep 2010)

Longroad, that is good news and I am glad things are looking a little brighter for you.  MABS are indeed the lifesaver for many, it is a pity they are so snowed under and not everyone can avail of their services fast enough.


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## BazFitz (4 Oct 2010)

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