Hello,
First post about this, be nice please
We have run into financial difficulties and have not made a payment on our credit card in roughly 4 months. Before that I was trying to chip away at it but could not keep up the monthly payments. The total outstanding is €8300.
Today I received a letter stating that I needed to pay a balance of around €820 within 21 days or the card would be cancelled, we would be reported to the ICB, and that the debt would be referred to their solicitors and/or passed on to a debt collection agency.
We might be able to scrounge the current lump sum, but then every month after that we would be unable to pay again and just delay this happening again.
I called AIB to see what could be done, and was told they were not able to talk about any deals or payment options until after the card is officially cancelled in 21 days. I am not sure what payment options would be on offer after this- do they generally write some of it off, or just lower the payments but take forever to pay it off? Either way, there is a report sent to the ICB and our credit rating takes a dive.
I know that if it is passed to a debt collection agency, you can get a big write off.
There is also an option to take a loan from our credit union to pay off the credit card, with a lower interest rate and so easier (and hopefully doable) payments. We then avoid the bad credit rating but sign ourselves up for more payments.
I am thinking take the knock with the bad credit and hope for a good write-off from the debt collectors, my wife is thinking do the loan. The credit rating is important to us as neither of our 2 cars is going to last the 5 years the ICB holds on to records, and we will need loans for a new one.
So advice please? Take the hit and bad credit, or the loan and more money out?
Is a bad credit rating enough to stop you getting a car loan?
Thanks for reading.
First post about this, be nice please
We have run into financial difficulties and have not made a payment on our credit card in roughly 4 months. Before that I was trying to chip away at it but could not keep up the monthly payments. The total outstanding is €8300.
Today I received a letter stating that I needed to pay a balance of around €820 within 21 days or the card would be cancelled, we would be reported to the ICB, and that the debt would be referred to their solicitors and/or passed on to a debt collection agency.
We might be able to scrounge the current lump sum, but then every month after that we would be unable to pay again and just delay this happening again.
I called AIB to see what could be done, and was told they were not able to talk about any deals or payment options until after the card is officially cancelled in 21 days. I am not sure what payment options would be on offer after this- do they generally write some of it off, or just lower the payments but take forever to pay it off? Either way, there is a report sent to the ICB and our credit rating takes a dive.
I know that if it is passed to a debt collection agency, you can get a big write off.
There is also an option to take a loan from our credit union to pay off the credit card, with a lower interest rate and so easier (and hopefully doable) payments. We then avoid the bad credit rating but sign ourselves up for more payments.
I am thinking take the knock with the bad credit and hope for a good write-off from the debt collectors, my wife is thinking do the loan. The credit rating is important to us as neither of our 2 cars is going to last the 5 years the ICB holds on to records, and we will need loans for a new one.
So advice please? Take the hit and bad credit, or the loan and more money out?
Is a bad credit rating enough to stop you getting a car loan?
Thanks for reading.
