Clear a Credit Card

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Duffy55

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18 months ago I took out a term loan to clear credit card and overdraughts from a failed business, This was a term loan for 30k all the credit cards and overdraughts were with tsb they would only do a loan over 4 years which was and is tough.
I have now reduced this by 9k so it is 21 k owed now. I have a Credit card from the business which TSB refused to incorporate into the loan as it was on an avante carde at the time of 9k I pay 259 per month to Avant Card to reduce this but at that rate of payment it does not go down. I own my own house mortgage free, I am at the moment asking PTSB to increase my loan again to 30k to clear the credit card debt 0f 9k. I am under pressure as the 1050 a month is hard to do every month and very hard when the debt on the card is not reducing,
if ptsb refuse to give me 9k on to the term loan and I decide to stop paying them for a few months so, I can pay off the credit card and get it cleared. What action can they take against me? I would resume payments again once the card is reduced.
I held my hands up to PTSB at the time to clear all the debts of the business and to be honest they were sickening to deal with and unsympathetic to the failure of the business. If they had incorporated the other debt and given me the loan over 10 years it would have made the situation so much easier for me
 
Have you been back to PTSB to renegotiate a longer term?
Have you contacted Avant card and asked for the interest to be reduced or suspended?
(Or for the balance to be turned into a term loan,if they offer that).
At the moment no one knows you are struggling,because you are keeping up repayments.
What interest rate are you paying to Avant?
Unless it's over 30%,you must be reducing the balance.Are you still using the card?
Your idea of stopping PTSB repayments 'for a few months' seems borne out of something other than clear thinking.It would take a year of no payments to PTSB to clear Avant card,during which time your lovely unencumbered house might come on the radar.
 
I know I am a bit demented. I am going back to ptsb today and asking them for a longer term and to see if they will add the 9k owed to Avante to the term loan. I have not yet asked Avant, My credit rating is at the moment 100% perfect but it is so tough and I would prefer to keep it that way but see no way out, I do not use the card. If I ask Avante to reduce the interest will that affect my credit rating? I am debating do I care if my credit rating is affected as I am 54 and wont ever be applying for a mortgage again. Thank you for your reply.
 
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Duffy55 said:
if ptsb refuse to give me 9k on to the term loan and I decide to stop paying them for a few months so, I can pay off the credit card and get it cleared. What action can they take against me? I would resume payments again once the card is reduced.
Click to expand...

I don't think that ptsb will give you an additional unsecured loan of €9k to clear a credit card.
They should agree to extend the term of your loan from 3 years to 5 years, which would help a bit.
Don't ask for a new loan as you won't get it.
Tell them that you are under severe pressure and something has to give.
Ask to extend the loan to 10 years and ask for a 6 month payment moratorium so you can make inroads into your credit card debt.

You should also ask for a deal from Avant card.

Put your case in writing to ptsb after meeting them.
1) I have acted responsibly at all times and want to continue doing so.
2) I have made huge personal sacrifices, but life is now not worth living.
3) My credit record is perfect despite a failed business.
4) This is my plan and I need your help to achieve it.
5) My loan is absolutely secure as I have a mortgage free house

If they refuse, then you must take unilateral action.

Reduce your payment to ptsb, but pay them something every month.
Maybe clear the Avant card over 2 years.

ptsb is unlikely to take legal action as long as you are paying.
 
18 months ago when I held my hands up and asked PTSB to put business over draught and card debts into a term loan the only terms they offered me was 4 years to clear it in a personal loan and I at the time argued that it was too short but they refused to listen it. As I didn't want my credit rating affected I agreed. I don't know what I will do if they refuse now I feel I have no other option other than to stop paying them and reduce the Avant card debt and after I reduce AVANT start again to pay PTSB.
 
if PTSB extend my Loan and give me the 6 month payment moratorium how will that affect my credit rating?
 
Thank you for the help Brendan it is the first time in a number of months that I feel I have the courage to deal with PTSB. I am trying to get my life back after the failure of the business and I really do want to do it in an ordered fashion it was a mistake to keep the business open for as long as we did. But failure at the time did not seem an option.
 
I received a call from PTSB today informing me that they will not re structure the loan over a longer period of time nor will they incorporate my credit card debt into the loan, The branch manager said that if we continue to repay the loan they would be willing to look again at it in 6 months time. I now feel it is time to cut my payment to PTSB to perhaps €200 a month and start to clear my Credit card debt for a period of time. I told him I was considering this option and he said I would never get a loan again and how would I be if my wife or I got sick and needed a loan, in my book this was crazy as we have a perfect record now and they won't facilitate us. Sorry if this is long winded! Here is my question .
IF I start to clear my debt on the Avante Card and over the next 6 months get my balance reduced will Avante renew the credit terms on the card due to the fact that I will have a bad credit rating as I have reduced my payments with PTSB ?
The only reason I ask is, as we really have no emergency fund for the past while it will be comforting to know that as the Avante Card reduces that in case of a dire emergency it is there, Sorry for long winded post.
 
I'm not sure I have any direct answers for you Duffy, but, a fairly long time ago I got into huge difficulties with debt and tried to manage it discretely keeping up payments etc. and living on air, second-hand clothes and moving home to my parents. At some point I plucked up the courage to ask my bank at the time to reduce the repayments; they refused point-blank and for a few months I kept up the very stressful hair-shirt living. Eventually I discussed it with a friend who had been in a similar situation. He told me to sit down and work out what I could reasonably pay and write to the bank explaining that this was what they'd be getting from me and to also ask them to suspend the interest payments. I had to let go of any notion of holding onto my credit rating, at least in the short-term. Very nervously I sent off the letters, and got a response to say they would accept my repayments (bur not suspend the interest) and eventually I got the debt paid off after 5 yrs or so, and my credit rating is long back to as it was before.

The lesson I took from this experience was that I needed to do what was in my best interests and not the banks. I decided I would pay them off, but in a way that I could manage reasonably. It sounds like you've been very responsible with managing your debt, and you have seen that you need to pay off the credit card given the interest rates. I would be inclined to discuss what my best options were. Look at options on paper with your partner and maybe a level-headed friend, see what works for you. From what you're saying, it seems like you are particularly concerned about your credit rating and maybe having a rainy day fund for emergencies, and maybe you need to weigh these up against getting the Avante card paid down efficiently and using the money you have to hand to serve your best interests and not PTSB. Only you can decide what is in your best interests, but personally I would be inclined to seek a moratorium on the interest on the card as vandriver has suggested, and consider reducing the payments to PTSB, (write to them informing them of this and the rationale behind it along with any figures to support the revised repayment amounts), for an appropriate period to allow the card to be paid-off. Squirrel a few quid into a very small rainy day fund for emergencies and take it from there. That's my take on it, I wish you well whatever you decide to do.;)
 
We followed your advice but PTSB refused to accept a lower amount each month and after we defaulted for 3 months requested us to apply for a new loan over a longer period. We applied and then they refused but asked us to engage in a promise to pay approximately 400 euro per month so we could prove ability to pay for 6 months which we have now done and now at the end of 6 months during which time they have charged us penalty interest of €40 extra each month, We assumed they would then formally agree to the lower amount repayments. However They have now asked us to reapply again for a term loan over a longer period which if they agree will be great but I have now applied for a term loan 3 times on money we owe them I do not believe they will agree to this while the whole time they are adding penalty interest.
 
We followed your advice but PTSB refused to accept a lower amount each month and after we defaulted for 3 months requested us to apply for a new loan over a longer period. We applied and then they refused but asked us to engage in a promise to pay approximately 400 euro per month so we could prove ability to pay for 6 months which we have now done and now at the end of 6 months during which time they have charged us penalty interest of €40 extra each month, We assumed they would then formally agree to the lower amount repayments. However They have now asked us to reapply again for a term loan over a longer period which if they agree will be great but I have now applied for a term loan 3 times on money we owe them I do not believe they will agree to this while the whole time they are adding penalty interest.
 
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