Default - next step?

[1NightInIbiza]

I posted a while back regarding my overdraft.

I've defaulted on a overdraft & credit card with the same company.
Overdraft approx £3250 - no fees/charges been added yet
Credit Card: £4350 approx. With £100 of charges added for last month and another £95ish due to be added next month.

I'm currently studying, so won't get a job again until at least June/July 2014.

I've had threatening letters regarding it being a default, a serious breach of the agreement etc etc. Do I just continue to ignore them now, or offer £1 a month? Will it matter either way? Should I just ignore them and save myself £1 - as there's no way I can afford to pay any more for at least a year

I have other borrowing which I'm currently paying back if that makes a difference. These are active cards/overdrafts etc, but if I paid any more towards the two which are due to default, I wouldn't be able to pay my others. Plus car insurance & finance.

Unsure which is best to do. Nationwide (I'm assuming) have passed my details to some annoying (and expensive) debt management company who kept harassing me until I blocked their number

Also, for argument's sake, is there any difference between one default and ten defaults? Not going to be ten, but hypothetically if one was to move a few additional overdrafts to a savings account and then default on those as well?

[MrsD]

Re: Default - next step?

one is as bad as ten, so if you are going down you may as well go in style, get them all sorted out

if you can tell us dates, OC etc, we can help a bit more

[1NightInIbiza]

Re: Default - next step?

Sorry - OC?

There's certainly no way back from the Nationwide 2. They gave me notice they'd pull my overdraft in May 2013. I called up and got a reducer loaded so it came down £150 a month - but they then suddenly pulled that too (probably on re-checking my credit file and seeing my debt elsewhere).

I've had constant phonecalls/texts etc from their debt management people & current account collections (seems to be 2 teams) since the start of Aug. After I missed my c/card payment at end of Aug they seem to have passed my details to 'Baines & Ernst' or someone like that - a debt management company

I did work in finance until recently (I'm studying, so reluctantly had to quit). Given my existing problems getting back into a finance job is going to be hard - so I wanted to put the other overdrafts in a savings account elsewhere, as a safety net for the future (given that I won't be able to borrow again for 3+ years).

I guess if they don't force bankruptcy I've got the safety net (and gained 'free' money) but got 5 more defaults and endless phonecalls. If they force bankruptcy I've gained little but will have an extended restriction period for taking the mick??

Sorry, just thinking aloud, unsure exactly what's needed! What's the chance of them forcing bankruptcy? Based on just the original n/wide one Never-In-Doubt said no way - but if it's a collection of chaos, is that more likely?

Thank you for your reply!

[MrsD]

Re: Default - next step?

we can't second guess that, but what would be the point if you are a student?

Why don't you list your debts then we can have a look and find a way forward?


Type of account (credit card/loan)


Date commenced (ideally before Apr 2007)


Approx balance


Date last paid (approximate date you last made a FULL payment)


Are you on arrangement or not paying


Status (default/in arrears/up-to-date)


Account owner (who is writing to you, a DCA or the lender)

[SXGuy]

Re: Default - next step?

Think a lot of your worries are jumping the gun a bit, we really need to know more about the debts before we can give you an idea of a way forward, bankruptcy really is the very last resort at the back of a very long line.

Chances are no one is going to force a bankruptcy, not for that amount of debt, and not if you are a student

[1NightInIbiza]

Re: Default - next step?

Thanks for your replies!

All accounts were 2009 or later. I'll post more accurate dates if it would help

Overdrafts
1 x £3200 (N/wide). Last credit in was ~July. Last payment out was mid-August, hasn;t been touched since. Been cut to 0 for a few weeks and had threatening letters so assuming in arrears

1 x £2000. With my ex-work. Student account (Interest free), ~700 credit in a related account. Not had any requests for payment etc. Due to expire July 2015 I believe.

£10,600 - RBS Group. No request for payment etc yet. They accepted then declined a consolidation loan (was a last ditch attempt to get rid of the overdrafts when N/wide started chasing me)

Credit Cards
£4500 Nationwide. Last used start of Aug. Last proper payment end of July I believe (Online banking is down). Officially at least 1 month late & over limit. CRA status still says 'ok' but showing as over limit
£3000 RBS Group. 0% until next year. Was paying the minimum but stopped (assuming they're going to do me for the overdrafts anyway). Haven't heard from them yet re: credit cards


Accounts that are up to date but have balances up to the limit:
£750 interest free til July. Paying minimum. All up to date
£1150 - paying minimum. Long term balance transfer (from the Nationwide card).

Plus quite a few accounts with no balance (Vanquis, Capital One etc)


Then I have savings: £7000~ (basically the overdraft money that hasn't been used yet). Due to get £2000 in the next few weeks (SFE loan).
Plus the car on some sort of hire purchase and a warranty & servicing loan bundle in with it. Car is valued at about 11k. I've paid very little towards it so far, but up to date.

I was thinking pay some back to Nationwide - but I already had an agreement with them that they went back on (I see it's a 'gesture of goodwill', so they don't have to stick to it and can still default me at any stage - hence my reluctance to pay higher payments with them and get defaulted anyway in say 2 years).

Other option is to pay it back into the RBS group accounts, but I'm practically living in part of that overdraft - as soon as late payment markers go on CRA feeds they're bound to pull them :/

Basically, one big mess! Thanks a lot if anyone has any ideas! Burying my head in the sand and ignoring them all seems the easiest option at the moment - even though I know you shouldn't!

[Never-In-Doubt]

Re: Default - next step?

If they're all post 04/2007 then you will struggle with the UE route sadly.

[SXGuy]

Re: Default - next step?

So Niddy, whats the op's best way forward? if they are already defaulted then I guess waiting for the debts to be sold on and then negotiating a really low repayment subject to a low F & F sometime in the future could be a way forward?