Credit Card Debt...... Need help?

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daveh24

Guest
It would be great to get some advice form someone who could help me. Basically im a 25 year old single male ,earning around 350 euro a week. Around 6 months ago i got a credit card (visa) from bank,alllied irish bank with a credit limit of £1,500. To cut a long story short my part time internet business failed and all of a sudden i had a debt of 1800 euro on my credit card,didnt know how to pay it back. My card was bloacked and cant use it anymore.

It was a direct debit and after two months the direct debit was cancelled because i couldnt pay the amount due. I recieved a few letters from the bank telling me to pay and then received a letter from the aib saying that i was to contact the credit card company immediatly in relation to the credit card or they would take the matter further.

I rang the credit card company and they put me through to the credit department. The lady i spoke too was quite helpful, she wanted me to pay 300 euro intially to clear the overlimit balance so i wouldnt be caught for this but i didnt have the cash. I agreed that id pay 70 euro aweek to the credit card company and she said she would contact me at the end of the month if any problem occurred with this.

Ive made 8 payments of 60 euro plus I payed the interest that i was charged.

I then received a letter from the bank today saying that i had 21 days to pay the balance or the credit card would be cancelled and i would be referred to there solictor or debt collectors. I dont mind losing my credit card as its only trouble but whats this about a solictor or debt collector????????

Im totally embarressed about the debt i owe and dont want anyone to find out.

Can i agree with them to continue paying them 70 euro a week.

could i try taking out a loan to pay it off?

I presume now my credit rating is absolutly screwed for the future? is there anyway i can repair it.


Any kinda advice help would be great.
 
1500e less 240e made by installments + interest isn't a huge amount to owe. Contact your bank asap and come to an arrangement where you can pay the amount most affordable and they will probably agree. I would think it came to the banks notice due more to the direct debit bouncing rather than your credit history. Bear in mind that a lot of ppl run up credit card debt and just pay the minimum each month (not advised) so eight installments over six months is not so bad provided you pay enough to cover the monthly interest.

Credit cards are really just expensive overdrafts unless paid in total monthly. Consider taking out a personal loan instead for a lower interest rate. In the meantime cut up the card.
 
I suggest you talk to MABS- a free and independent service that may help you come to an arrangement with AIB
 
Get a personal loan and pay off and cut up the credit card.
 
You could have problems getting the personal loan given your history, missed credit card payments will show up on your ICB (what Irish institutions use to calculate your risk) record for 5 years. It's worth discussing this with AIB as the loan could be structured over a longer time frame to allow payments to be made without running into trouble.

Mabs is a must to avoid getting into further problems and to address the issues which caused this problem. They provide an excellent service for people in your position.
 
agree aboput MABS. They'll contact the bank for you, AFAIK adn arragne MANAGABLE repayments. Think about opening a credit union account too, although I know you're strapped at presernt and you wouldn't be able to get a loan from them straight away ... again MABS will help you there. I think it's strange that the bank are threatening you for CC debt that you are trying to repay. Would they not suggest giving you a term loan to clear it? at least the interest wouldn't be as high and the debt wouldn't run away from you! Don't panic adn don't ignore them. It's not a huge amount, although you think it is. You'll get sorted if you go to MABS and stay calm. Good lucK!
 
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