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Thread: What are you doing about your debt?

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    Politics.ie Member cuiseogach's Avatar
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    Default What are you doing about your debt?

    About a year or so ago I posted a thread asking for advice re. my celtic tiger credit card debt (nothing out of control but wanted to sort it out).

    I considered defaulting on it but decided not to do that and am paying it back- and am almost there with it as a result of long hours and sound money management.

    Nobody suggested at the time - that I can remember - to apply for forbearance and to pay it back more slowly and in smaller repayments but I strongly advise people to consider this. If you go down this route I understand that you will also have interest and other fees frozen and waived so you will end up saving money in the long-run. The downside is it's on your credit rating, but so are any late repayments, and considering it can be really hard to get a loan, especially if you are on social welfare (which a lot of people are who have this type of debt) then this is a great option.

    My advice to anyone with credit card debt under 10k and particularly those with more than one credit card, is to stop juggling repayments and living so close to the edge. Get forbearance (it will stay on your record for 5 years, but you will still in the meantime be showing that you ARE paying back what you owed, so you didn't default, and give yourself that 5 years to get your act together).

    There ain't many strategies out there but would love to hear of any other suggestions you might have.

    P.S Also, call your bank if you have been late with a repayment on your credit card. Tell them you are having a hard time, that it's getting harder and harder for you, and that you need a break and are considering defaulting as it might be easier than this struggle- this for me earned me waived fees for one month - it's worth a try.
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    Politics.ie Member Happytolearn's Avatar
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    I've approached my bank on 4 separate occasions (3 times through a solicitor) to attempt to negotiate a mutually benficial way of detoxifying my mortgage. They have apathetically ignored me. I'm now positive their apathy and inaction will mean they will get less than they would have had they worked with me.
    I'm a better man now than I was that day

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    Politics.ie Member QuizMaster's Avatar
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    We're paying interest only on the mortgage, by agreement. For a 2nd 6 month period. Not sure what we'll do if they won't go for a 3rd one.
    I'm hoping to string them out as long as possible, and in the meantime maybe the euro will collapse.
    If there is a future, it will be Green.

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    Politics.ie Member cuiseogach's Avatar
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    Good luck with that, I can only imagine that mortgage debt is a whole different ballgame.

    I hope there isn't silence on here from credit card debtors- it would be great to get a discussion going on this. My instinct tells me that people are not applying for forbearance in as many numbers as should be. It's just crazy to pay so much of a small income on repayments to the banks when you can pay less over a longer period while you get back on your feet.

    Nobody is talking about this anywhere, but it's one of the major reasons people on this 188 welfare per week can't spend or live well. 188 a week should be loads for young enough single people- make it work harder for you, not the banks.

    I really regret not having gotten this advice sooner myself so that I could have acted on it and saved a lot of stress.
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  5. #5
    Gimpanzee
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    Quote Originally Posted by QuizMaster View Post
    We're paying interest only on the mortgage, by agreement. For a 2nd 6 month period. Not sure what we'll do if they won't go for a 3rd one.
    I'm hoping to string them out as long as possible, and in the meantime maybe the euro will collapse.
    Seriously?

  6. #6
    Gimpanzee
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    Quote Originally Posted by cuiseogach View Post
    There ain't many strategies out there but would love to hear of any other suggestions you might have.
    I know this will sound preachy, but it can't be said often enough - credit card debt should be seen as a legit moneylender racket. If at all possible, borrow money from a CU or where ever, pay off the cc debt and cut up your card. Arsing around with forebearance, delayed payments and waived fees isn't addressing the problem at all.

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    Politics.ie Member zakalwe1's Avatar
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    Quote Originally Posted by cuiseogach View Post
    About a year or so ago I posted a thread asking for advice re. my celtic tiger credit card debt (nothing out of control but wanted to sort it out).

    I considered defaulting on it but decided not to do that and am paying it back- and am almost there with it as a result of long hours and sound money management.

    Nobody suggested at the time - that I can remember - to apply for forbearance and to pay it back more slowly and in smaller repayments but I strongly advise people to consider this. If you go down this route I understand that you will also have interest and other fees frozen and waived so you will end up saving money in the long-run. The downside is it's on your credit rating, but so are any late repayments, and considering it can be really hard to get a loan, especially if you are on social welfare (which a lot of people are who have this type of debt) then this is a great option.

    My advice to anyone with credit card debt under 10k and particularly those with more than one credit card, is to stop juggling repayments and living so close to the edge. Get forbearance (it will stay on your record for 5 years, but you will still in the meantime be showing that you ARE paying back what you owed, so you didn't default, and give yourself that 5 years to get your act together).

    There ain't many strategies out there but would love to hear of any other suggestions you might have.

    P.S Also, call your bank if you have been late with a repayment on your credit card. Tell them you are having a hard time, that it's getting harder and harder for you, and that you need a break and are considering defaulting as it might be easier than this struggle- this for me earned me waived fees for one month - it's worth a try.
    congratulations on the financial discipline...you'll find thats the last time you go into the red and will be a net saver in future (if you learn from your mistake).

    I was in a similar position between 2004 to 2006 and replaced a term loan and credit card debt with another term loan (i was barely making minimum repayments and was overspending by a good bit). the lessons learnt meant that i have been a net saver all through the recession and have built up a nest-egg over the past 6 years. of baldy noonan thinks he's getting his mitts on my cash then he has another thing coming...i've scrimped and saved (havent bought a suit or coat in years and have been mending my clothes etc) for my money and its not going to keep some fat retired civil servant in a 100k plus pension....
    I liberate minds with my music. That's more important than liberating a few people from apartheid or whatever. - Kanye West

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    Politics.ie Member QuizMaster's Avatar
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    Quote Originally Posted by Gimpanzee View Post
    Seriously?
    Well we don't have too many options. Maybe they'll let us pay interest only indefinitely. Maybe we can pay some principal and some interest. Maybe they'll forgive us a bit. Maybe they'll give us an incentive to give up the tracker (though it would want to be bloody good). Maybe we'll get rich. Maybe they'll become part owners and we be part tenants. Maybe they will repossess and make us full tenants. Maybe they'll kick us out. Maybe we'll get a lodger to offset the mortgage. Maybe we'll start renting out in the summer and live God knows where meantime. We are surrounded by nice beaches. Maybe something I haven't thought of will happen.
    If there is a future, it will be Green.

  9. #9
    Politics.ie Member cuiseogach's Avatar
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    Quote Originally Posted by Gimpanzee View Post
    I know this will sound preachy, but it can't be said often enough - credit card debt should be seen as a legit moneylender racket. If at all possible, borrow money from a CU or where ever, pay off the cc debt and cut up your card. Arsing around with forebearance, delayed payments and waived fees isn't addressing the problem at all.
    It doesn't sound preachy at all, it just sounds like you have a chip on your shoulder or that you are insecure if you feel the need to post that on this thread!

    Fyi when a person is on a low income they can't just get another loan. Yes of course the card is cut up, that's a given here, what I'm saying is that the best solution for those on low income is forbearance - paying back smaller amounts over longer period.

    If you have a better solution for those in this situation, post it, if not then carry the chip elsewhere
    Níl tairbhe sa tseanchas
    Nuair a bhíonn an anachain déanta

  10. #10
    MrFunkyBoogaloo
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    Defaulted on a small CC debt 3 years ago. Paid down all other debts.

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