CC Debt Pay nominal or default?

[muchdebt]

Hi,
I have a credit card debt of almost 12,000 euros with one of the big banks here.
I have not paid the minimum payment (350 or so) for 4 months as my wife was paying it for me,but due to a change in circumstances,she is no longer able to.
I look after the children,and can only get work for one night a week.My wages are 260 euros a month.
The bank have revoked the cc and after I sent in a statement of means,have agreed to accept a nominal amount off the debt per month for the next six months.After this time they will review.
My question is this:is there any point in paying the amount agreed (150 years payback) or from a credit rating point of view,am I better just not paying at all, letting the matter come to a head and let the bank get a (unenforceable) judgement,which would end after 12 years?
I have no assets,and we rent.I have another debt of the same magnitude which is being serviced by my spouse on an interest only basis,as she spent most of the money on that card.
My spouse earns 2500 per month and we have 2 kids in primary school.
Also,given that my circumstances are unlikely to change in the next 5 years,what would an acceptable settlement be (possible to get a small loan off a relative)
My total debt is obviously too high for a DRN,and any of the bankruptcy options would be no goes as I dont really have an income to offer the debtors.(I give my wife 40 a week contribution,and have to buy diesel for the car)
Any ideas,advice,suggestions ?

 

[Gerry Canning]

With 2 kids , total income 2760 and renting there is no loose cash for the banks.

Given that both debts total circa k24 and are in your name and you have no assets to repay the bank , there is little point in them pursuing you.
That said they may well get judgment against you. That in reality means very little unless your situation improves.

Can I suggest write to both lenders and outline YOUR situation , as the debt is SOLELY in your name .
I presume you want some closure and it may also be the Bank will view it the same way.Give them any info they require on YOUR sole situation.Always impress on them your wish to pay but that you have no free income.
Keep copies of everything and do not move from the position that this is YOUR debt ,do not give wifes details, that you wish to pay the debt, but simply cannot afford it.

At worst you may have to do a table of means , but from what you say , should you be called to court the judge will quickly see your circumstances and at worst judge may say a small amount must be paid each month.

In any event , go for closure ,as this unpayable debt overhang is life-corrosive unless sorted.