Solicitors letter/credit card

Just wondering if anyone has gone through the court system regarding unpaid debt, credit card, overdraft debt.

I did write to my credit card company explaining that I couldn't meet the repayment due to unemployment etc. and that I was trying to sort out my finances in order to make repayments but I wouldn't be able to meet the minimum amount. They wrote back to say what I was offering was not enough.

Anyway they kept sending reminders to pay and I have now received a solicitors letter to say further action will be taken if I don't pay the full amount.

I can't get an appointment with MABS but on their website they say that sometimes the court can go in favour of a person and not to be afraid of the courts.

Has anyone any experience of the courts? or advice.

Keep paying off what you can Tessi, it can only work in your favour, chin up. Have you tried converting the debt into a long term loan?

Hi DeeKie

Unfortunately due to a failed business its a bit more than a credit card debt. The bank refused to deal with us untill we had sorted any mortgage supplement we could manage plus we had to get our mortgage down which we have only just got a letter to say they will extend it by 10years. Not a particularly a good idea but we have no choice. We have not contacted the bank yet as we are trying to pay a few priority bills off before we are forced to make any payments towards our debts.

Its still going to be a huge burden to pay off a reasonable sum for each loan so I honestly don't know what to do except let the courts decide. We have got our budget down to the last penny. Which we are fine with as we have to face facts in that we just can't afford anymore. We always shop around for good bargains with regards to food, we try not to waste esb, telephone. We have gone nearly a whole winter without the heating and boy that was a cold one. We have a small sitting room where we light a fire in the cold weather and we try to use this room only.

To be honest I don't think we could have forseen the circumstances we ended up in and really thought we had ourselves covered. However we understand we have to now take responsibility but that doesn't do anything to stop the worry and anxiety. Our problem with trying to come up with a payment plan is because the amount we could afford is too small and won't cover the interest charged and we will therefore never be out of debt even if we pay for the rest of our lives. Secondly the low payments won't be accepted. We are hoping that if it all goes to court the judge may stop the interest being added. Sorry about the long post.

Thanks for your reply.

The courts will reduce the interest down to 8% from whatever you are paying now.
Have they cancelled the credit card agreement yet?

Hi Carey

Yes they have cancelled eventually. I sent in registered letters explaining the whole situation enclosing the credit cards probably two months ago. I have heard of the interest been frozen on accounts when it has gone to court, I'm not sure what the circumstance have been but I'm hoping I may fall in to that category.

They will freeze the interest once it is going to court. The reason is they must fix an exact amount that they are claiming.

Pay what you can, advise debtors that you await meeting with MABS, a Mabs rep and a banking rep will work out a reasonable repayment structure, it may take a little while to see a mabs rep, but they will give you great advise, and have a honost and respected position with banks , BS's and cc companies. Pay Only what you can manage until you meet MABS, you will then sleep easy !!!!