M
madcatwoman
Guest
I'm posting this on behalf of a relative (lets call her Mary) who is in a bit of trouble with her credit card debt. I'm sure given the current climate there's a lot of people in a similar situation so any advice about the situation would be greatly appreciated.
Mary has run up a credit card debt with MBNA of €5,400 in one year. She has not been paying even the minimum payment back each month.
She also has a BOI credit card which has a balance of €1,500, which again is not being paid back each month.
Mary recently attempted to get a consolidation loan and was told she was on a bad credit rating list
Both organisations have been calling/writing to Mary and she has been putting her head in the sand and ignoring their calls and letters. The latest letter from BOI says that if she does not call, it will be on to the debt collectors.
Eventually Mary spoke with MBNA who said that if they did not receive a small payment (less than 100) by the end of the month, they would be also on to the debt collectors.
Considering Mary cannot get a consolidation loan, what is her best course of action here? I'm very interested in hearing any experience others may have had in a similar situation. MBNA have suggested they may be able to come to an arrangement with her with regards stopping the interest. I presume this would be a short term arrangement?
My second question is this - If Mary does not take responsibility for paying off the debt, what exactly will happen when it goes to a debt collector? Bear in mind Mary lives with her parents and has no assets except for a relatively inexpensive car. (>4k value) Could Mary's parents be dragged into this situation?
I presume this is going to have big repercussions for Mary in the future in terms of getting a loan or mortgage.
It would be great to hear of other's experiences with this or indeed any advice you may have. Thank you.
Mary has run up a credit card debt with MBNA of €5,400 in one year. She has not been paying even the minimum payment back each month.
She also has a BOI credit card which has a balance of €1,500, which again is not being paid back each month.
Mary recently attempted to get a consolidation loan and was told she was on a bad credit rating list
Both organisations have been calling/writing to Mary and she has been putting her head in the sand and ignoring their calls and letters. The latest letter from BOI says that if she does not call, it will be on to the debt collectors.
Eventually Mary spoke with MBNA who said that if they did not receive a small payment (less than 100) by the end of the month, they would be also on to the debt collectors.
Considering Mary cannot get a consolidation loan, what is her best course of action here? I'm very interested in hearing any experience others may have had in a similar situation. MBNA have suggested they may be able to come to an arrangement with her with regards stopping the interest. I presume this would be a short term arrangement?
My second question is this - If Mary does not take responsibility for paying off the debt, what exactly will happen when it goes to a debt collector? Bear in mind Mary lives with her parents and has no assets except for a relatively inexpensive car. (>4k value) Could Mary's parents be dragged into this situation?
I presume this is going to have big repercussions for Mary in the future in terms of getting a loan or mortgage.
It would be great to hear of other's experiences with this or indeed any advice you may have. Thank you.