Struggling with debts - irish cc and overdraft - and UK debts

[Desperation]

Hi All,

Wasn’t sure where to post asking for advice.
I am an irish citizen now living in UK. I have an irish and english bank account. I have lived and worked permanently in UK 6 years now (approx). I cannot afford repayments anymore on my irish debt - £4k cc and £2k overdraft. I have been making minimum payments the past 6 or so years, since I moved. I don’t know how to get round this, I have always paid my dues but am struggling now. If I stop payments what is the likely outcome? Bailiffs from Ireland arrive on my doorstep? My UK credit score takes a big hit? Should I ask for a repayment plan (I would if it didn’t affect my UK credit score). I’m lost.
Many thanks in advance for any good advice.
Thanks

[Timewilltell]

I can’t help as I’m not sure what rules apply but I’m sure someone with greater knowledge will be along shortly with some words of wisdom.
PlanB Warwick65

[Colin G Quinn]

Hi Desperation,

I'll give you a full response as best I can. However, as a starting point to help me, is the Irish debt/account showing on your credit report as it stands, whether as an open or defaulted or otherwise account?

[PlanB]

I am an irish citizen now living in UK. I have an irish and english bank account. I have lived and worked permanently in UK 6 years now (approx). I cannot afford repayments anymore on my irish debt - £4k cc and £2k overdraft. I have been making minimum payments the past 6 or so years, since I moved. I don’t know how to get round this, I have always paid my dues but am struggling now

Hello and welcome to AAD

Your thread title mentions both Irish and UK debts so maybe it would be a good idea to look at all of them at the same time since you've been struggling for 6 years and it's time to get some peace of mind rather than feel you're constantly 'on the run'.

If you can make a separate post for each debt (on this thread) giving the background it would be a good way to get the ball rolling, and forum members can make suggestions from a holistic viewpoint.

I look forward to helping you.

Di

[Desperation]

Hi Colin,

Firstly, thanks for your reply. Any help/advice really appreciated.

The irish CC and Overdraft accounts don’t show on my UK credit scores at all.

[Desperation]

Hello and welcome to AAD

Your thread title mentions both Irish and UK debts so maybe it would be a good idea to look at all of them at the same time since you've been struggling for 6 years and it's time to get some peace of mind rather than feel you're constantly 'on the run'.

If you can make a separate post for each debt (on this thread) giving the background it would be a good way to get the ball rolling, and forum members can make suggestions from a holistic viewpoint.

I look forward to helping you.

Di

Hi Di,

Thanks for taking the time to respond.

I suppose the main issue for me is dealing with my irish debt. I can manage my english accounts okay, although meant I could only make minimum payments on my irish debts. My biggest worry is how my UK credit score will be affected should I default on the irish debt, be it stopping payments altogether, or asking for interest to be halted, and a payment plan organised - which I would be willing to do.

[Timewilltell]

As suggested the best way to be able to advise is for you to layout the debts in the diary format so that we can understand the history, as it may be the way you are approaching is different to how we can advise, potentially without any detriment to yourself. The more we understand the better the advice can be.

[PlanB]

Hi Di,

I suppose the main issue for me is dealing with my irish debt. . . . My biggest worry is how my UK credit score will be affected should I default on the irish debt, be it stopping payments altogether, or asking for interest to be halted, and a payment plan organised

I suppose I should ask whether you are referring to the Republic of Ireland or Northern Ireland?

I can see that your biggest worry is any impact on your UK credit score, but you might also want to get clarity on whether defaulting on these Irish accounts or ceasing payments altogether could trigger legal action which could be enforced in England where you now currently live.

This link may help to explain, but as all things post-Brexit the situation isn't exactly clear > https://www.mondaq.com/ireland/trial...st-brexit-era-

Even if the Irish ones agree a payment plan that won't necessarily mean they won't start legal proceedings if they can (and where they can), but as I say the jurisdiction issue isn't clear (post-Brexit) and may depend on what was said in the original contract Terms & Conditions. Do you still have those documents?


Di

[Desperation]

I suppose I should ask whether you are referring to the Republic of Ireland or Northern Ireland?

Republic

I can see that your biggest worry is any impact on your UK credit score, but you might also want to get clarity on whether defaulting on these Irish accounts or ceasing payments altogether could trigger legal action which could be enforced in England where you now currently live.

This link may help to explain, but as all things post-Brexit the situation isn't exactly clear > https://www.mondaq.com/ireland/trial...st-brexit-era-

Thank you, I will have a read of this. I really don’t want any legal battles, or any commotion, I would be more than happy to make reasonable payments, at the moment I am just throwing pound after pound at it and its so frustrating. I know I got myself into this situation, but I am willing to still pay but I need something to change - but don’t want to destroy my average UK credit score.

Even if the Irish ones agree a payment plan that won't necessarily mean they won't start legal proceedings if they can (and where they can), but as I say the jurisdiction issue isn't clear (post-Brexit) and may depend on what was said in the original contract Terms & Conditions. Do you still have those documents?

I don’t have original docs unfortunately - the credit card is 19 years old now, it is a Bank of Ireland card. Overdraft is even older (but not always overdrawn - again is BOI. I really do appreciate your time in responding, thank you.

[Colin G Quinn]

Hi again,

If you agree to a reduced monthly repayment, it shouldn't affect your credit score in the UK. Potential creditors may review your credit history in other another country, but I don't believe that is standard practice, and given everything is online these days I think its unlikely they would.

The thing to remember is that, although you may agree a reduced monthly payment, if you are not making contractual monthly payments you will likely be defaulted (in Ireland). Don't forget also that an Overdraft is payable on demand, there are no monthly repayments so to speak.

Now, as to the question of the Irish Bank instructing a debt collector to pursue you in the UK; a debt collector should really only be instructed if you are making no payments at all. If you have reached an amicable agreement to pay a reduced monthly sum then there is no reasonable reason why a debt collector should be instructed.

[PlanB]

Hi Di,

. . . the main issue for me is dealing with my irish debt. . . . I could only make minimum payments on my irish debts. My biggest worry is how my UK credit score will be affected should I default on the irish debt, be it stopping payments altogether, or asking for interest to be halted, and a payment plan organised - which I would be willing to do.

In my personal experience if you agree a payment plan with a creditor which is less than the monthly contractual amount then it is sometimes (not always) reported on your credit file as an ATP (Arrangement To Pay) which is better than a Default marker but nevertheless it shows you're not making the full contractual payment.

However this may all be academic since you've said neither of these two accounts are showing on your UK credit files. Have you checked them all? For example some report to both Equifax and Experian, and some only use one etc.

The irish CC and Overdraft accounts don’t show on my UK credit scores at all.

I can't give you financial advice but it's not uncommon for people with a clean credit history to take advantage of interest free balance transfers by moving from one credit card provider with a high APR to one with an interest free period, but you need to do thorough research first because the introductory period may be attractive but after that the rate could be punitive.

It's known as 'stoozing' > https://conversation.which.co.uk/mon...-bank-account/ .


Di

[Desperation]

Thank you so much for the feedback Di and Colin. I am going to approach the BOI and see how we can sort this out amicably. Hopefully we can both be happy, I just want less stress (no stress preferably!).

Fingers crossed for a positive outcome.

Thanks again.

[PlanB]

Thank you so much for the feedback Di.

I am going to approach the BOI and see how we can sort this out amicably. Hopefully we can both be happy, I just want less stress (no stress preferably!).

I want you to be happy too

I also share your aim for a stress free life, but if things do get ugly you can feel free to post on the forum for further suggestions on how to manage your situation.

Take Care

Di