Charge off credit card early

[frankieh]

Can somebody explain to me what does this mean? I know that they will report me to ICB and I won't be having access to any credit for the next 5 years. Will the ICB delete it from my record? Is there anything else to know? Thank you

 

[terrontress]

If you are unable to pay off your credit card you will ultimately get what is known as "charged off". When the account is charged off it can no longer be used and all interest, fees and charges are suspended.

The bank simply tries to recover the outstanding balance.

This usually takes 90 - 120 days depending on the bank.

If you lose your job and have no income, no ability to pay the bank they might offer to charge it off early instead of waiting three or four months. By doing this you will save the interest charge in those months plus a late payment fee, maybe a bounced DD fee, overlimit fee if your interest and fees put you over that.

If you think you will be unable to make the payment in the near future then charging off early is a good idea to avoid all the fees which add up when going towards charge off.

If you can't make the payment then I wouldn't worry about the ICB. It only will accurately reflect your dinancial status at present.

 

[frankieh]

Thank you soo much for your reply. I want to pay the debt I own in full but I'm not willing to pay further interests and fees. I tried to make an agreement with the bank and I was paying on time for 6 years but they wouldn't bulge! I tried to call, I visited the branch. I have low income and when paying 120 every month the card company would take 70 euros on fees and interest and only 50 euros will go towards the debt.I will be paying 6000 euro for the next 10 years. I was counting and came to conclusion that half of my debt is already interest and charges.Why is nobody doing anything against the interest credit card companies are charging?

I tried to take a loan to pay it back but nobody will give it to me( because of the credit card debt and my low income). So I have asked to charge off my debt early. I was really foolish to ever sign up for the credit card. Well lesson learned for sure!