Ordinarily I would advise that you go into arrears to force the CC companies to freeze the interest. One problem I see here though is the house. Was the mortgage taken out in both your names ? Is there a legal document that states that you have discharged all ownership. If not, then the CC companies could get a charge on the house for the money outstanding which would be paid back on the sale of it. This may not be a bad thing though if it gave you breathing space and stopped the interest from now. but your ex would need to be informed possibly.
Can you go back to the credit union and consolidate the debts so that you are potentially paying a much lower interest rate? This may also give you the opportunity to offer the CC company a settlement amount that is less than the current balance.
It's not that they will force the sale of the house, it's that if a judgement is granted, when the house is sold, the mortgage balance (if any) will be paid, then the judgement satsified, then the balance paid to your ex.
Go through your income and expenditure. There's no such thing as an acceptable amount amount after living expenses - this is your disposable income. There are however acceptable amounts in terms of the living expenses themselves eg full sky package - not essential, single person spending €700 a month of food - not acceptable to most creditors either. Be realistic with your expenses - without knowing your income, impossible to answer.
Your debts add up to €12750. Using a five-year plan as an example, can you afford €212.50 a month? Assuming interest can be frozen with the consent of your creditors, your debts will be repaid in full over this term.
Well it looks like the only option you have is to stop paying the CC till they agree to stop any more interest acrueing. I suggest you ring them and tell them you cannot pay and you want to come to an agreement once they freeze the interest.
If you can show that as your disposable income, you should be able to get this arrangement in place - roughly works out MBNA about €112, €70 to CC, €30 to O/D per month. That's your debt sorted over 5 years. Obviously the various creditors may seek to review this at different intervals, normally 6-monthly, in terms of your income to see if there has been any improvement. If no improvement, plan will generally continue as is.
If you get a judgement you're also liable to court interest of 8% per annum on top of the debt. The debt will grow, and you may also end up with an instalment order against you - deal with it now, do not wait, as the lender has no obligation to suspend interest, particularly where the debtor is not co-operating.
Have you read this thread t=153211&highlight=MBNA+arrears"]dealing with MBNA I haven't but it may be useful.
Thanks again frostie. I'm fully prepared to work on this to get it fixed. All my other debt was managed but credit cards are a foolish form of finance that keep you paying thousands for years. Mbna have been paid thousands in interest over the past few years and is continue as is but my circumstances have changed too much to continue.
I don't want to go down the road of courts and judgements.
My income is pretty straight forward to see. I pay my rent and maintenance by bank transfer and bills by dd so it's all laid out in my bank statements. Do I need to provide these or will a letter suffice outlining my budget?
A letter will generally suffice -you put all your income on to a spreadsheet to go along with it, send the cover letter showing all of your creditors and how much you owe each- send this to each of your creditors -asking them to accept the amount you have offered, that you believe it is fair based on your circumstances, and that you request that they freeze interest and charges to allow you to deal with the debt. The only thing you may need to provide is a proof of
This is what I needed to read. Thanks very much for this. Will keep this updated with progress
you put all your income on to a spreadsheet]
*and expenditure!! sorry! Good luck with it, hope it works out!
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