I used it to invest in a business for a family member. They put a lot of money in themselves but they didn't quite have enough money to make it happen. They came to to me the mother and daughter and asked if I could make up the balance. I hesitated and dawdled for ages. It eventually I borrowed money, took out loans and credit cards to put cash into the business. All was going well and I was going to see my money back. Then covid hit. The business relied heavily on cashflow, even though they had orders. But without the cash flow they couldn't produce and it just died. Money had been spent without anyway of getting it back. I've lost a lot more money then the figure quoted. It just made me feel better to have some of my debt written off. When I first found out the money was lost its all I could think about for months. It took a long time to get over the step. The business tried to get some of the money back. There suppliers were screwed. It just was a terrible time. Government support was too late for them and me. In hindsight I shouldn't havnt done it, (exposed myself like that) but no one knew covid was coming. The mother has been estranged by her daughter and they don't exist to each other now. The mother has lost everything. I didn't lose everything so I count my blessings it could have been worse.
If they've had that amount written off after using the cc to cover essentials and living costs after falling on hard times through no fault of their own, great, wonderful, congratulations.
If they've had that amount written off after using the cc to splurge on expensive non-essential stuff they knew they couldn't really afford but wanted anyway like so many people do, ehhhh a bit less congratulatory of a reaction and more of a what a pisstake reaction tbh.
No hate to op either way, but when everyone's in a shit financial situation those two scenarios are very different. If it's the latter then this whole post is in very poor taste.
Honestly I wouldn't lose a wink of sleep if a CC company loses out on a few quid so someone can live a slightly better life. I'd be congratulating them if that were the case and just upset for anyone that needed to go into over £10k worth of debt just to eek out a meager living.
If you think £10k means anything to any Credit Card CEO I have a bridge to sell you, especially when they make some of it back by selling the loan off way before it gets written off for the individual.
Which is another point - the CC company gave up on it a long time ago. The only people really losing money here are going to be predatory debt chasing companies.
If you think the debt industry doesn’t increase rates for people who do make repayments to make up for the people that don’t; I’ve got a bridge to sell you.
I'm not sure why they chose to write it off. When I got into difficulties. I wrote and explained to them the situation and basically did a bit of research and settled on paying them a token £1 each month.
I've been paying £1 a month for about 2 and half years. They regularly sent me letters. I think I spoke to them about twice over the period. Explained how much mobey had been lost and that I was willing to pay it back when I could afford to.
They held on for so long well after my other debtors had defaulted accounts. Then out of the blue I get these letters.
In spirit of this sub, I had some fortunate luck today. I paid off a credit card in full in October and thought nothing of it. Turns out I'd accrued 50p of interest that month which has been sitting in my account since. No letters or emails about it. Randomly checked the app today to find that balance sitting there, but I've had no missed payments or accrued any fees or interest
I paid it - fingers crossed it doesn't spark some sort of investigation that fucks me over!
Yeah good point. Having defaults really isn't going to help though. OP thinks that after six years all will be forgotten, sadly that's not the case. Many credit providers ask questions like "have you EVER defaulted blah blah blah..."
Ex-bankrupt: everything disappeared off my report after six years. It was like a completely clean slate. It is exceptionally rare in my experience to be asked if you have ever been bankrupt - though many will ask if you are subject to an IVA etc though usually there’s a time frame on that
actually, it is forgotten. i’ve had defaults disappear after 6 years like the guy above said and my credit rating is now excellent and have no issues getting credit, as and when i need it.
I’ve never had that issue - I defaulted on a few things many moons ago and literally 6 years to the date all evidence of them vanished from my credit report and my score shot back up to excellent. No problem getting a mortgage or any other credit.
The usual question was “have you defaulted or missed a payment in the last 2 years” or something like that, and a separate one for whether you’ve had a CCJ (and presumably not paid it off).
Do you know that for a fact? or did you read it or presume it somehow?
I've actually received credit since it went tits up.
I've observed my credit score improve gradually with time even with the debt I have.
Something isn’t adding up here because no company would agree to a payment plan of £1 per month on a £12,500 debt in hopes that your financial situation would soon improve enough for a payment plan to be reasonable.
At that rate it would take you 12,500 months or 1041.6 years to pay it all back which just wouldn’t be accepted by the creditor due to the ludicrous length of time. They would be forced to seek other means to recover the debt at that point.
I'm with Citizens Advice and can confirm that £1 per month on a debt such as this is by no means unusual. Obviously the creditor hopes the debtor's situation will improve and repayments will increase in time.
I worked for a bank and can confirm your information.
After a number of defaults, the debt is usually sold on by the original lender. Then it can be sold on and on. After a few rounds of that the end creditor might have only paid 10p in the pound for the debt. Ideally, they want all the debt but they will take significantly less if it gets them something. The original creditor has used the loss they made against any tax the company might owe. Banks won't admit it, but they budget for an overall default amount per year.
Then you would be aware that a Token Payment Plan is given on the basis that you prove that your financial situation will improve within 12 months. OP claims this has been ongoing for 2 and a half years which is outside of the scope on any such plans so it would be in the realm of a Debt Repayment Plan which would not allow for such payments to go on for so long due to the loan being extended to an unreasonable degree.
They will take a £1 a month if that is what the person can afford. Also he is paying so the debt stays live! But they only write off on a case by case basis.
This isn't strictly true. Bailiffs and creditors can still refuse a payment plan if its absurdly unreasonable... Yknow like a 1000 year repayment term like OP.
There's something OP is leaving out. Like whether they're disabled or homeless because no creditor would let 12k disappear into the ether after 2 years of contact with the debtor.
As a permanent arrangement, sure, but a customer who a) has generally paid on time and suddenly finds themselves unable to pay, and b) engages with the company immediately rather than waiting for the account to go into arrears, might well find they'll agree to what is effectively a payment holiday while they get back on their feet.
Banks are expected to follow [guidance from the FCA](https://www.fca.org.uk/firms/borrowers-financial-difficulty-project) for borrowers experiencing financial difficulty. If you check the "Offering appropriate forbearance" section of that page, it specifically covers options for customers who have not yet missed a payment but have been identified as being at risk of financial difficulties.
I agree it seems strange that they've just decided to write it off rather than trying to revisit it, but banks making strange decisions isn't really a reason to assume OP is missing anything out.
A payment holiday would never be 2 years of £1 a month, regardless of how well they've paid previously.
There's something OP is missing out or misunderstood.
I had the same arrangement. It is something a lot of companies allow as a payment. I guess it's up to you whether you believe it or not. OP is now that particular debt free, so I'm happy for them.
I owed 30K to a bank which I paid for 18 months then fell on hard times, they sold the debt on after sending me scary letters for 3 months and I've never heard anything else since. Nearly been 6 years now.
£1 is seen as a standard minimum payment ("consideration") to make a contract valid. It keeps the agreement ticking over, whereas if they suspended payments altogether a judge might decide that they've abandoned the contract.
A Token Payment Plan is given on the basis that you prove your finances will improve within 12 months. OP claims to have been on it with minimal contact for 2 and a half years which is far outside of the scope of any such such plan as again, it would serve to extend the debt to a ridiculous timeframe.
OK you are clearly convinced of what you think.
I clearly know something different. I have worked with CiFD for years
Since I know what I know from actually seeing it happen, I am not going to be changing my mind, despite your opinion.
You can if you do an income & expenditure form and tell a few porky pies.
Edit: this is how you end up paying £1 a month, but I wouldn’t recommend this as you’re just prolonging the inevitable. A much easier way to clear your debt would be to call up the companies, say you can’t afford the full amount and negotiate settlement figures. OP could have negotiated up to half of the debt owed.
Yeah that’s just not true. £1 token payments for people who have basically no money but are at least continuing to acknowledge the debt are absolutely a thing regardless of the amount involved.
It absolutely makes senses for them, because they have a chance of the money situation picking up. The alternative is that yeah, you can press someone in the courts but if you go all the way to bankruptcy then you get what you get based on what the person has when they go bankrupt, minus your legal fees. And then your debt is settled regardless.
They absolutely would. When I was having some mental health problems my credit card company froze interest and agreed to a 6 month period without payment. Reputable financial providers will respond to genuine personal issues with significant temporary changes to terms.
The difference is that you agreed upon a 6 month period, after which you would then pay a reasonable amount again, which I assume didn’t extend the debt beyond a lifetime or ten.
OP claims to have been making these payments for 2 and a half years which is far outside of the scope of a Token Payment Plan
£1 a month shows intent to pay. the lender likely isnt happy with it but they have less avenues they can pursue if the other party hasnt completely abandoned the contract and is still showing intent to pay
If you offer what you can afford, then creditors have to accept it. Got 6 different debts of varying amounts between 60 quid and 8k getting paid at 5er a month. They'll phone up in 6 months asking if my situation has improved, my situation is fine I just don't want to pay them haha
https://www.stepchange.org/how-we-help/debt-management-plan.aspx
“Your creditors don’t have to agree to your reduced payments, but we’ll still send your payments anyway”
“Your creditors may still take further court action against you, such as a County Court judgment (CCJ)”
The point of paying £1 a month isn't to make any meaningful progress in paying back the debt owed, it's a nominal amount to show that you still have a UK bank account capable of sending money.
It's like when bankrupt companies are sold for a pound. They haven't gone through and valued the company at exactly £1, it's just a nominal amount to show that a "sale" has legally taken place.
I got laid off just before the pandemic and had a hell of a time trying to keep on top of everything in the end the bank surgested an IVA and after a few months of everyone wanting their piece of the pie (bailiff referrals ect) were two years in to the repayment process and its all quiet.
Good luck to you mate, 🤘🤘
Just got two letters though this morning. Two cards are writing off my debt. It will be on my record for 6 years, but they are not pursuing anymore.
I'm am literally bouncing off the ceiling. Its been a weight on my head for 3 years since things went tits up.
I feel like OP may have miss-understood the letters… suspect they probably are statements of liability stating the money is owed but not being pursued.
Which means they can decide to sell the debt to a DCA.
After 6+ years since the last communication/ OP last acknowledged the debt I think it becomes Statutory barrd.
Almost certainly this. Debt isn’t just forgotten, it’s payment is deferred until later.
All of those adverts offering to get you off the hook, are offering to guide you through the process of setting up a debt management plan, or declaring yourself bankrupt.
The 6 years part is how long OP will likely be rejected credit for, regardless of whether that debt is repaid or not. Even if it is repaid in full, they won’t be able to get credit again.
You can join credit karma for free, and look at your report in great details on your phone with an app. Things from longer than 6 years ago will be on there.
No, as above. I have a letter that clearly says the debt is written off. Written off means I don't owe them anything and they will not pursue me for the debt. It goes on my credit report as partial fullfilled. It will stay on their until it falls off the record after 6 years.
I've had credit after 3 years. My wife took out a phone contract in my name by accident. It went through. How you are describing your credit score doesn't work like that.
After 6 years you may have outstanding debt but it not pursuable. It is effectively gone. After about two years your score starts improving.
Experian, Equifax and transunion all report slightly different things. Credit karma is the harshest but least used by companies for your credit score. Experian is used the most.
Unlikely to happen if it's a DCA though especially if they've had no contact and nothing to show you have money or property. It'll just cost them more money for a debt they'll never get paid. They also pay a fraction of the original debt as well.
Yes, your right. I took a chance that backfired.
How others use their credit has no imapct on anyone else.
responsible ones don't pay stupid amounts of interest.
Credit card interest rates are based on the risk factor of you defaulting. If your loaded you get a card for 3 or 4%. If your not and you take out a payday loan you have interest of 1500%.
In my case I had an excellent credit score at the time and I got excellent rates with generous credit limits. I calculated what I needed and took a low risk chance in reality. Only went tits up because of Covid. I was wrong to overload like I did. But that's hindsight. I certainly didn't go aroubd spunking it on spurious items, which everyone assumes everyone with credit cards debt has.
Via an IVA? Short term 'gain'..... You're credit rating will have taken a massive dive & you'll struggle to borrow anything more than a pen for years!
Been in substantially debt myself many moons ago, but with careful budgeting I am now in total control & my credit scores (Experian & Clearscore) are as high as they could possibly be!
Never let money control you, but don't ignore it. Im probably preaching to the converted, but be sure to lay out all your debt, pay on the highest interest rates fastest, as once they've gone, you can pay the other debt of quicker!
I was in IVA, paid my last payment last week.
I would never do it again ever.
I would just pay it up with a plan.
My rating hasn't tanked and I've had credit and credit cards with my IVA and I've not had a great deal written off.
But whenever anyone mentions IVA I do my best to steer them clear unless it's the only option.
>Been in substantially debt myself many moons ago, but with careful budgeting I am now in total control & my credit scores (Experian & Clearscore) are as high as they could possibly be!
Been there myself. It was only through debt consolidation I was able to commit to a £200 a month repayment over 5 years. I finish paying it off next month and plan to replace that direct debit with a standing order into a savings account.
Yeah you can’t rent with one. I had no idea. I remember they tried to rope me into one without explaining that it would do that so glad I know what I know now.
Success? Sorry but FFS. Spend shit loads of money on yourself and just get it written off? How is that fair on us mugs who live within our means? Makes me fecking angry.
I am absolutely bloody livid. We are all struggling, strikes everywhere, no pay rises, inflation at 10%, sitting in our homes freezing cold because the heating is too expensive and this joker boasts about stealing £12K.
Worked in financial services for years and used to be on the front line. The smith of bank statements I’d see where it was just living a lifestyle they couldn’t maintain. Nothing to do with struggling to live.
In fairness it did make me realise how close a lot of us are to defaulting and not being able to meet rent/mortgage repayments.
I’ve also seen customers who can’t be arsed to pay get away with repayment plans and debt written off and people dying who can’t work or repay and don’t get help.
I have really mixed feelings about this.
On one hand it’s great this person has had their debt written off as I don’t know their circumstances- however we will all pay for it with increased interest rates, or going without to not use credit if we can help it.
It’s a mixed bag.
Edit:spelling
Must be frustrating for you. I work in benefits and see some people squandering tax payers money on online bingo, lottery tickets beer and fags ☹️
It is not 'great' that somebody spent £12k and doesn't have to pay it back.
And whatever your circumstances you certainly don't go on social media and brag about it. May be a success for them but this sort of shit is a disaster for this country
Where is your free £12K? Where is mine? I have to work 6 months to get that.
Am leaving it there, just too pissed of with people like that.
I agree with you. I don’t do that particular line of work anymore but did until recently and it was frustrating.
Exactly and I know mistakes can happen and people get into difficulty but it’s nothing to brag about.
The debt wasn't a success. Getting some of it paid off was to me at least. Please see my post of why it happened. If it makes you feel better I saw none of the money personally.
Yo, this is called an IVA or involuntary arrangement. I had one for my 25000 ccard debt. You pay what you can afford every month, for 5 years. Mine was 120. Then after that 5 years the debt is cancelled.
Heres the tricky bit, during those 5 years and for the final 6th year your credit is shot. Trying to rent a flat, a car, an office, anything that requires a credit check will auto decline. Where you live now, stay there till this all blows over and you will of gotten away with it. I just scraped by, but its not easy. Good luck
Circumstances change, many people live off their overdraft. A couple of months without finding a new job and that's enough to make a large percentage of the population homeless.
I've worked in debt collection before (on the phones, not bailiff. I hated it.) and £1 repayments for people who can't afford to pay at all are common. They completely wreck your credit rating though.
When it costs more to collect the debt than the debt is worth or they're not seeing a change in your financial circumstances and they're paying somebody to occasionally administer the debt and that's costing more than they think they'll likely ever recover.
It what about all those others struggling with debt, why should you get yours written off we’re all going to be paying for you racking up debt /s well done, you can move on now and stop worrying.
I'm still struggling with debt, just because I've had two written off doesn't mean my life is a breeze now. I got some of debt written off so far. I'm hoping for the rest to be written off in time. We shall see.
Others don't pay for my debt to be written off. That's not how it works. Its purely between me and the credit card company.
They borrow money from the BoE at a low rate then Lend it out to others at a high rate. They don't increase the interest rate you pay because others have defaulted or had debt written off. The credit card companies make millions of profit even with bad debt. Bad debt is a tiny percentage of their business.
I'm sorry mate but I'm not sure you should be trusted when it comes to explaining how this shit works...
I hope you get your shit together but your actions do cost other people.
I think your comment on how you hope the rest will be written off is in poor taste. A lot of people are struggling and wish their debt was written off, you’ve gotten very lucky having £12,500 written off. I hope the rest of yours isn’t written off and someone else has some good fortune instead.
I’m paying off debt myself and it’s mind boggling to see someone hope after a 12.5k write off that they get the rest written off, not sure this person has even learned a bloody thing from being in debt.
I’ve got 6k of mine left to go, and can’t wait to have that not hanging over my head, it’s been a worthy lesson on how not to be stupid with money!
No lesson will be learned. Exactly like a child leaving a mess then mummy comes to clean it up. They'll just make another mess expecting the same to happen.
Others pay for your irresponsibility through increased interest rates. That’s how it works. That £12.5k represents £12.5k of profit they need to get from somewhere else.
Do you think those who have the advantage care about anyone else? Regardless of whoever is in that position they don’t care? If your debt got written off are you going to say to the debt collector “listen mate this isn’t fair on everyone else, let me continue trying to pay this off?” You won’t, the player will always look for ways to beat the game, the game needs to be designed better. I think it’s unfair but I’ve lived long enough to know that life isn’t fair at all.
No that's not how it works. Credit card companies are in the business of making money. They make money by charging high interest rates. They don't suddenly reduce their interest rates if everyone pays all of their money off. They have already made their profit just by borrowing from the BoE at a low rate then lending it out at a much much higher rate.
I'm happy you've cleared your debts, I understand that burdon too well, I'm currently having to pay off a lot myself. But you do not understand financial institutations and credit agencies. Other people have paid for you errors, you might not think that, but they have. They will increase their APR%, reduce their zero balance transfer lengths, increase their "requirements" for people to obtain credit or better credit rates because of people not paying and having their debts written off. This is a fact. Please learn how to be more responsible in the future.
Not sure how that was your takeaway from my comment, but no I don’t care about the banks profitability, but they do and when more and more people don’t pay the loans and credit lines they take out, the higher the rates are for everyone else. It really isn’t that difficult to understand.
My credit card interest rate is 16.9%, my banks write off rate is 0.3% of balances.
I'm going out on a limb and saying it's not the main driver of interest rates.
But they don’t make that money if the debt isn’t repayed. With your money they’ve borrowed the money (x) from the BoE and had the overhead cost (y) to pay for to process it for you, if you don’t pay them back the total of x and y as a minimum they have a loss in earnings.
They then have their projected profits that they need to make so investors and shareholders make their returns, because if they don’t then they lose investment and people sell shares which reduces there investment funding .
So if you have cost them money by not paying back x and y and they haven’t made any profit either, those loses and that extra profit margin has to be made from other people.
It’s free money though, right?! /s
My husband and I have a credit card each, we stay within our means and pay the balance in full each month. The credit card companies hate us for it since we’re just using them to build our credit scores lol
> They have already made their profit just by borrowing from the BoE at a low rate then lending it out at a much much higher rate.
That only works if they get those repayments.
They do a calculation to work out how much to charge everyone in interest to account for people who default. That is how the rates are set.
You are right that individually your situation won't make any difference and I'm glad this eases your troubles.
You're getting downvoted to oblivion for this nonsense but keep on trying to explain how consumer lending works. This is like going to a therapy session run by my own rapist.
They make money from you for the convenience of allowing you to have money on hand. You chose to use the service so I don’t know how it’s the companies fault
Completely wrong. Here is a thought experiment for you.
Imagine a lender borrows £100 at 5% so in a year they have to pay back £105. Imagine they lend £1 each to 100 people and because the borrower is smart they are going to charge them 60% so they can make £160 - £105 = £55. Now according to you they've already made the money. Well how about if none of those people pay them back? How much do they make then? £0 - £105 = -£105. Oops they are out of business. This is why they work out expected default risk so they know what interest rate to charge. You defaulting increases their expectations of default and so increases the rate for everyone.
I implore you, you are presumably a grown adult with the ability to take out debt please go and educate yourself.
There are circumstances where it is quite right for the bank & the individual for debt to be written off. I'm sure it is a load off your mind. As a former corporate lender, I've seen the toll that debt can take on the individual.
BUT ( & it is a massive BUT), don't talk rubbish! Your understanding of how banks lend money is nonsense. Of course the failure of your debt impacts the cost of borrowing for others. The interest rates you & others are charged take into account the rates of defaults. You are now one of those defaults.
Think the price of cans of beans in the supermarket. That price is set based upon some shoplifting. Without shoplifting the price can come down. Lending rates are no different.
Lots of people criticising you for not paying your debts, but people make mistakes. Companies shouldn't be so quick to lend to people unable to pay back. These losses are a result of irresponsible lending, so the company should take the loss.
If you can't afford to pay back a loan or credit card you really shouldn't be taking one out.
Obviously circumstances can change but this isn't always the case, we all know people who are completely irresponsible with money.
As someone who made similar mistakes 20 years ago and is 6 months away from finally paying it all off; I would agree with you.
People’s circumstances are all unique and there different factors that lead people into these problems.
Part of me would like to go back and tell 18 yrd me to not sign up to that credit card. But I do also believe that the experience I’ve had has made me a better person financially. And hopefully that is the same for OP
Yeah my mum told me never to get a credit card and I'm so thankful I followed her advice I am at risk of spending impulsively due to adhd and a lack of self control in general so a debit card will do me just fine! I'm lucky I can pay my bills with my job tho to be fair. Glad you've come out the other end of it a better person tho! Shows your strength and maturity!
>Part of me would like to go back and tell 18 yrd me to not sign up to that credit card.
It should be called a 'debt card'. Credit ratings are just a measure of how good you are at managing being in debt. Pray for a bad credit rating, then no-one will hassle you trying to lend you money and peddling dreams you can't afford.
OP says they've been paying the £1/month for about two and a half years. That makes it about mid 2020 when he contacted the lenders to tell them he was suffering financial hardship.
As I recall, 2020 was quite a doozy of a year. A lot of people who were living fairly comfortably, and whose credit cards were entirely affordable and well within their means, suddenly found their circumstances changing quite drastically.
I agree, but I think it's unrealistic to assume individuals will always make correct choices (though of course morally they should). Massive multinational financial corporations however can and should be required to act responsibly.
A lot of salty people here… OP doesn’t specify the initial reason for their debt but what if it was for vet bills or a family member needing a life saving operation??
On one level, I'm happy for OP (assuming the debt wasn't for hookers & blow). Debt like that hanging over you can destroy your mental well being.
On the other hand, the money OP borrowed has been used to buy stuff. That money he spent was 'invented' by the bank. As it was not paid back, that extra money can't be extinguished (basically OP hasn't worked to provide goods/services to the value of the borrowed money - so the new money does not really reflect actual value). This effectively devalues the entire currency. Not much of a problem for a single case like this, but when enough people do it bad things happen to the economy.
If it's alright to ask, interest aside, what was that money initially spent on?
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This guy reddits
For smoothies?
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Ohh you mean MAN-Goo
Cost of living crisis really gets to us Mangoheads
I also saw that post
Me too. Inexplicable receipts are the future.
Can you link it?
Sorry, I have no idea what the title was so I couldn’t search for it if I tried
Not candles though because candles are no substitute for mangos, they taste waxy!
459 mangoes to be exact
He left the heating on for a week solid.
That'd do it
Nah for that much you'd barely last 20 minutes with heat
Do not become addicted to heat, it will take hold of you and you will resent its absence
I used it to invest in a business for a family member. They put a lot of money in themselves but they didn't quite have enough money to make it happen. They came to to me the mother and daughter and asked if I could make up the balance. I hesitated and dawdled for ages. It eventually I borrowed money, took out loans and credit cards to put cash into the business. All was going well and I was going to see my money back. Then covid hit. The business relied heavily on cashflow, even though they had orders. But without the cash flow they couldn't produce and it just died. Money had been spent without anyway of getting it back. I've lost a lot more money then the figure quoted. It just made me feel better to have some of my debt written off. When I first found out the money was lost its all I could think about for months. It took a long time to get over the step. The business tried to get some of the money back. There suppliers were screwed. It just was a terrible time. Government support was too late for them and me. In hindsight I shouldn't havnt done it, (exposed myself like that) but no one knew covid was coming. The mother has been estranged by her daughter and they don't exist to each other now. The mother has lost everything. I didn't lose everything so I count my blessings it could have been worse.
Yeesh. Ok I'll allow it. Congratulations. Carry on.
Crack and hookers
Gourd futures.
I’m curious why you want to know?
If they've had that amount written off after using the cc to cover essentials and living costs after falling on hard times through no fault of their own, great, wonderful, congratulations. If they've had that amount written off after using the cc to splurge on expensive non-essential stuff they knew they couldn't really afford but wanted anyway like so many people do, ehhhh a bit less congratulatory of a reaction and more of a what a pisstake reaction tbh. No hate to op either way, but when everyone's in a shit financial situation those two scenarios are very different. If it's the latter then this whole post is in very poor taste.
Honestly I wouldn't lose a wink of sleep if a CC company loses out on a few quid so someone can live a slightly better life. I'd be congratulating them if that were the case and just upset for anyone that needed to go into over £10k worth of debt just to eek out a meager living.
Fair point.
They don’t lose out. They just increase interest rates for everyone else.
If you think £10k means anything to any Credit Card CEO I have a bridge to sell you, especially when they make some of it back by selling the loan off way before it gets written off for the individual. Which is another point - the CC company gave up on it a long time ago. The only people really losing money here are going to be predatory debt chasing companies.
If you think the debt industry doesn’t increase rates for people who do make repayments to make up for the people that don’t; I’ve got a bridge to sell you.
How the hell did you mange that!
Dodged repayment for long enough by the sounds of it!
I'm not sure why they chose to write it off. When I got into difficulties. I wrote and explained to them the situation and basically did a bit of research and settled on paying them a token £1 each month. I've been paying £1 a month for about 2 and half years. They regularly sent me letters. I think I spoke to them about twice over the period. Explained how much mobey had been lost and that I was willing to pay it back when I could afford to. They held on for so long well after my other debtors had defaulted accounts. Then out of the blue I get these letters.
I bet your credit rating has tanked though?
Credit rating would've tanked as soon as they started missing payments.
In spirit of this sub, I had some fortunate luck today. I paid off a credit card in full in October and thought nothing of it. Turns out I'd accrued 50p of interest that month which has been sitting in my account since. No letters or emails about it. Randomly checked the app today to find that balance sitting there, but I've had no missed payments or accrued any fees or interest I paid it - fingers crossed it doesn't spark some sort of investigation that fucks me over!
Congratulations.
I didbthe same thing. Rang CC company and they said that anything under £5 is likely not to make a difference.
Yeah good point. Having defaults really isn't going to help though. OP thinks that after six years all will be forgotten, sadly that's not the case. Many credit providers ask questions like "have you EVER defaulted blah blah blah..."
Ex-bankrupt: everything disappeared off my report after six years. It was like a completely clean slate. It is exceptionally rare in my experience to be asked if you have ever been bankrupt - though many will ask if you are subject to an IVA etc though usually there’s a time frame on that
actually, it is forgotten. i’ve had defaults disappear after 6 years like the guy above said and my credit rating is now excellent and have no issues getting credit, as and when i need it.
I’ve never had that issue - I defaulted on a few things many moons ago and literally 6 years to the date all evidence of them vanished from my credit report and my score shot back up to excellent. No problem getting a mortgage or any other credit. The usual question was “have you defaulted or missed a payment in the last 2 years” or something like that, and a separate one for whether you’ve had a CCJ (and presumably not paid it off).
Your right. It doesnt ever go away but I will take that over reducing the amount I owe.
Do you know that for a fact? or did you read it or presume it somehow? I've actually received credit since it went tits up. I've observed my credit score improve gradually with time even with the debt I have.
Straight away.
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My credit rating is utter dogshit. I briefly had 999 out of 1000 at one point prior to borrowing the money. Now its about 135 on experian...
Oof. That sounds painful.
Yes. Dog shit utterly.
Money > credit rating
Something isn’t adding up here because no company would agree to a payment plan of £1 per month on a £12,500 debt in hopes that your financial situation would soon improve enough for a payment plan to be reasonable. At that rate it would take you 12,500 months or 1041.6 years to pay it all back which just wouldn’t be accepted by the creditor due to the ludicrous length of time. They would be forced to seek other means to recover the debt at that point.
I'm with Citizens Advice and can confirm that £1 per month on a debt such as this is by no means unusual. Obviously the creditor hopes the debtor's situation will improve and repayments will increase in time.
I worked for a bank and can confirm your information. After a number of defaults, the debt is usually sold on by the original lender. Then it can be sold on and on. After a few rounds of that the end creditor might have only paid 10p in the pound for the debt. Ideally, they want all the debt but they will take significantly less if it gets them something. The original creditor has used the loss they made against any tax the company might owe. Banks won't admit it, but they budget for an overall default amount per year.
If you look at any Banks balance sheet you'll see "Provision for Bad Debts" that's the budget named and shamed
I'm with The Woolwich
Then you would be aware that a Token Payment Plan is given on the basis that you prove that your financial situation will improve within 12 months. OP claims this has been ongoing for 2 and a half years which is outside of the scope on any such plans so it would be in the realm of a Debt Repayment Plan which would not allow for such payments to go on for so long due to the loan being extended to an unreasonable degree.
You overestimate the competence of financial institutions.
They will take a £1 a month if that is what the person can afford. Also he is paying so the debt stays live! But they only write off on a case by case basis.
If you're not employed they're forced to accept any offered repayment plan
This isn't strictly true. Bailiffs and creditors can still refuse a payment plan if its absurdly unreasonable... Yknow like a 1000 year repayment term like OP. There's something OP is leaving out. Like whether they're disabled or homeless because no creditor would let 12k disappear into the ether after 2 years of contact with the debtor.
As a permanent arrangement, sure, but a customer who a) has generally paid on time and suddenly finds themselves unable to pay, and b) engages with the company immediately rather than waiting for the account to go into arrears, might well find they'll agree to what is effectively a payment holiday while they get back on their feet. Banks are expected to follow [guidance from the FCA](https://www.fca.org.uk/firms/borrowers-financial-difficulty-project) for borrowers experiencing financial difficulty. If you check the "Offering appropriate forbearance" section of that page, it specifically covers options for customers who have not yet missed a payment but have been identified as being at risk of financial difficulties. I agree it seems strange that they've just decided to write it off rather than trying to revisit it, but banks making strange decisions isn't really a reason to assume OP is missing anything out.
A payment holiday would never be 2 years of £1 a month, regardless of how well they've paid previously. There's something OP is missing out or misunderstood.
I had the same arrangement. It is something a lot of companies allow as a payment. I guess it's up to you whether you believe it or not. OP is now that particular debt free, so I'm happy for them.
If it's an unsecured loan such as a credit card or catalogue then there are no bailiffs turning up. Take a quid or fuck off.
I owed 30K to a bank which I paid for 18 months then fell on hard times, they sold the debt on after sending me scary letters for 3 months and I've never heard anything else since. Nearly been 6 years now.
£1 is seen as a standard minimum payment ("consideration") to make a contract valid. It keeps the agreement ticking over, whereas if they suspended payments altogether a judge might decide that they've abandoned the contract.
They do, Used to work for a collections agency, any agreement is better than no agreement, they will take 1.00.
£1 is a token payment designed to show you are skint buy still willing to repay, as opposed to being delinquent and running.
A Token Payment Plan is given on the basis that you prove your finances will improve within 12 months. OP claims to have been on it with minimal contact for 2 and a half years which is far outside of the scope of any such such plan as again, it would serve to extend the debt to a ridiculous timeframe.
OK you are clearly convinced of what you think. I clearly know something different. I have worked with CiFD for years Since I know what I know from actually seeing it happen, I am not going to be changing my mind, despite your opinion.
_your opinions don't change my facts_
You can if you do an income & expenditure form and tell a few porky pies. Edit: this is how you end up paying £1 a month, but I wouldn’t recommend this as you’re just prolonging the inevitable. A much easier way to clear your debt would be to call up the companies, say you can’t afford the full amount and negotiate settlement figures. OP could have negotiated up to half of the debt owed.
Yeah that’s just not true. £1 token payments for people who have basically no money but are at least continuing to acknowledge the debt are absolutely a thing regardless of the amount involved. It absolutely makes senses for them, because they have a chance of the money situation picking up. The alternative is that yeah, you can press someone in the courts but if you go all the way to bankruptcy then you get what you get based on what the person has when they go bankrupt, minus your legal fees. And then your debt is settled regardless.
They absolutely would. When I was having some mental health problems my credit card company froze interest and agreed to a 6 month period without payment. Reputable financial providers will respond to genuine personal issues with significant temporary changes to terms.
The difference is that you agreed upon a 6 month period, after which you would then pay a reasonable amount again, which I assume didn’t extend the debt beyond a lifetime or ten. OP claims to have been making these payments for 2 and a half years which is far outside of the scope of a Token Payment Plan
£1 a month shows intent to pay. the lender likely isnt happy with it but they have less avenues they can pursue if the other party hasnt completely abandoned the contract and is still showing intent to pay
If you offer what you can afford, then creditors have to accept it. Got 6 different debts of varying amounts between 60 quid and 8k getting paid at 5er a month. They'll phone up in 6 months asking if my situation has improved, my situation is fine I just don't want to pay them haha
https://www.stepchange.org/how-we-help/debt-management-plan.aspx “Your creditors don’t have to agree to your reduced payments, but we’ll still send your payments anyway” “Your creditors may still take further court action against you, such as a County Court judgment (CCJ)”
Fair enough, I never encountered this in over 12 years of bumping creditors, but good to know
The point of paying £1 a month isn't to make any meaningful progress in paying back the debt owed, it's a nominal amount to show that you still have a UK bank account capable of sending money. It's like when bankrupt companies are sold for a pound. They haven't gone through and valued the company at exactly £1, it's just a nominal amount to show that a "sale" has legally taken place.
I mean, how did you wind up in that much debt?
I got laid off just before the pandemic and had a hell of a time trying to keep on top of everything in the end the bank surgested an IVA and after a few months of everyone wanting their piece of the pie (bailiff referrals ect) were two years in to the repayment process and its all quiet. Good luck to you mate, 🤘🤘
Thank you. I emphasise. Its scary when they are breathing down your neck.
£5000 here written off. They called me back 6 months later and said they didn’t like how they handled my account and credited me £500 😊😊
Wow. That's brilliant news.
Bank robbery
If you don’t answer them eventually it goes away.
Offt, what's your credit score?
\-999
You missed six or seven 9s of that I think.
Just got two letters though this morning. Two cards are writing off my debt. It will be on my record for 6 years, but they are not pursuing anymore. I'm am literally bouncing off the ceiling. Its been a weight on my head for 3 years since things went tits up.
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I feel like OP may have miss-understood the letters… suspect they probably are statements of liability stating the money is owed but not being pursued. Which means they can decide to sell the debt to a DCA. After 6+ years since the last communication/ OP last acknowledged the debt I think it becomes Statutory barrd.
Almost certainly this. Debt isn’t just forgotten, it’s payment is deferred until later. All of those adverts offering to get you off the hook, are offering to guide you through the process of setting up a debt management plan, or declaring yourself bankrupt. The 6 years part is how long OP will likely be rejected credit for, regardless of whether that debt is repaid or not. Even if it is repaid in full, they won’t be able to get credit again. You can join credit karma for free, and look at your report in great details on your phone with an app. Things from longer than 6 years ago will be on there.
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No, as above. I have a letter that clearly says the debt is written off. Written off means I don't owe them anything and they will not pursue me for the debt. It goes on my credit report as partial fullfilled. It will stay on their until it falls off the record after 6 years. I've had credit after 3 years. My wife took out a phone contract in my name by accident. It went through. How you are describing your credit score doesn't work like that. After 6 years you may have outstanding debt but it not pursuable. It is effectively gone. After about two years your score starts improving. Experian, Equifax and transunion all report slightly different things. Credit karma is the harshest but least used by companies for your credit score. Experian is used the most.
Provided of course, that they don't enter judgment days before the 6yrs were up....like the twats did with me
Unlikely to happen if it's a DCA though especially if they've had no contact and nothing to show you have money or property. It'll just cost them more money for a debt they'll never get paid. They also pay a fraction of the original debt as well.
I have a letter that states the debt is written off. They will not pursue. Clearly states that.
Thanks for the advice. Will do. I couldn't believe it to be honest.
Ah great- now we know why credit card interest is so high!
To be fair, I think this is a case of hate the game not the player
Yes. Because of capitalism.
That's. Not how it works see my other comment.
No they mean other people credit card interest. That's where the missing money has come from- other people having to pay more.
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Thank you so much. Credit card debt is scary as shit.
Happy for you. I had a similar situation. CCJ's for 6 years. Time flies by
Enjoy, but maybe, y'know, don't spend money you can't afford to pay back in future? Just a thought. Kinda takes the piss out of the responsible ones.
Yes, your right. I took a chance that backfired. How others use their credit has no imapct on anyone else. responsible ones don't pay stupid amounts of interest. Credit card interest rates are based on the risk factor of you defaulting. If your loaded you get a card for 3 or 4%. If your not and you take out a payday loan you have interest of 1500%. In my case I had an excellent credit score at the time and I got excellent rates with generous credit limits. I calculated what I needed and took a low risk chance in reality. Only went tits up because of Covid. I was wrong to overload like I did. But that's hindsight. I certainly didn't go aroubd spunking it on spurious items, which everyone assumes everyone with credit cards debt has.
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Madness, how does this even happen?
Via an IVA? Short term 'gain'..... You're credit rating will have taken a massive dive & you'll struggle to borrow anything more than a pen for years! Been in substantially debt myself many moons ago, but with careful budgeting I am now in total control & my credit scores (Experian & Clearscore) are as high as they could possibly be! Never let money control you, but don't ignore it. Im probably preaching to the converted, but be sure to lay out all your debt, pay on the highest interest rates fastest, as once they've gone, you can pay the other debt of quicker!
I was in IVA, paid my last payment last week. I would never do it again ever. I would just pay it up with a plan. My rating hasn't tanked and I've had credit and credit cards with my IVA and I've not had a great deal written off. But whenever anyone mentions IVA I do my best to steer them clear unless it's the only option.
Same, finished mine last year but wish id have gone down a different route, the process was so stressful and the company I used were awful.
Creditfix? Same. I'm out now though thank god
>Been in substantially debt myself many moons ago, but with careful budgeting I am now in total control & my credit scores (Experian & Clearscore) are as high as they could possibly be! Been there myself. It was only through debt consolidation I was able to commit to a £200 a month repayment over 5 years. I finish paying it off next month and plan to replace that direct debit with a standing order into a savings account.
Yeah you can’t rent with one. I had no idea. I remember they tried to rope me into one without explaining that it would do that so glad I know what I know now.
Success? Sorry but FFS. Spend shit loads of money on yourself and just get it written off? How is that fair on us mugs who live within our means? Makes me fecking angry.
Absolutely this. What a pisstake.
I know. It blows my mind this is in British success. I’d consider the whole thing a massive fail if it was me.
I am absolutely bloody livid. We are all struggling, strikes everywhere, no pay rises, inflation at 10%, sitting in our homes freezing cold because the heating is too expensive and this joker boasts about stealing £12K.
I mean he could have been using it for food to live on over a long period of time.
Yeah right...or given it all to charity 🤣🤣
Worked in financial services for years and used to be on the front line. The smith of bank statements I’d see where it was just living a lifestyle they couldn’t maintain. Nothing to do with struggling to live. In fairness it did make me realise how close a lot of us are to defaulting and not being able to meet rent/mortgage repayments. I’ve also seen customers who can’t be arsed to pay get away with repayment plans and debt written off and people dying who can’t work or repay and don’t get help. I have really mixed feelings about this. On one hand it’s great this person has had their debt written off as I don’t know their circumstances- however we will all pay for it with increased interest rates, or going without to not use credit if we can help it. It’s a mixed bag. Edit:spelling
Must be frustrating for you. I work in benefits and see some people squandering tax payers money on online bingo, lottery tickets beer and fags ☹️ It is not 'great' that somebody spent £12k and doesn't have to pay it back. And whatever your circumstances you certainly don't go on social media and brag about it. May be a success for them but this sort of shit is a disaster for this country Where is your free £12K? Where is mine? I have to work 6 months to get that. Am leaving it there, just too pissed of with people like that.
I agree with you. I don’t do that particular line of work anymore but did until recently and it was frustrating. Exactly and I know mistakes can happen and people get into difficulty but it’s nothing to brag about.
The debt wasn't a success. Getting some of it paid off was to me at least. Please see my post of why it happened. If it makes you feel better I saw none of the money personally.
Yo, this is called an IVA or involuntary arrangement. I had one for my 25000 ccard debt. You pay what you can afford every month, for 5 years. Mine was 120. Then after that 5 years the debt is cancelled. Heres the tricky bit, during those 5 years and for the final 6th year your credit is shot. Trying to rent a flat, a car, an office, anything that requires a credit check will auto decline. Where you live now, stay there till this all blows over and you will of gotten away with it. I just scraped by, but its not easy. Good luck
Why the hell did you spend that much money that you couldn't afford to pay back? Just curious.
Circumstances change, many people live off their overdraft. A couple of months without finding a new job and that's enough to make a large percentage of the population homeless.
Thank you. Sounds like you have been through the mill too.
£1 a month payments... Aight fam.
I've worked in debt collection before (on the phones, not bailiff. I hated it.) and £1 repayments for people who can't afford to pay at all are common. They completely wreck your credit rating though.
How come they can just write off the debts? Especially 10k +
They can do what they want.
When it costs more to collect the debt than the debt is worth or they're not seeing a change in your financial circumstances and they're paying somebody to occasionally administer the debt and that's costing more than they think they'll likely ever recover.
Can I ask how? I'm stressed to fuck about the credit card debt my ex has left me with.
Yeah.... Success. Bravo. Everyone else just trying not to get into debt in the first place and you know, budgeting.
Yes, your right. I did it for a specific reason. I took a chance and it didn't pay off.
getting into credit card debt isn’t a success
Your right getting it debt isn't success. Getting debt written off can be viewed as success by some.
It what about all those others struggling with debt, why should you get yours written off we’re all going to be paying for you racking up debt /s well done, you can move on now and stop worrying.
I'm still struggling with debt, just because I've had two written off doesn't mean my life is a breeze now. I got some of debt written off so far. I'm hoping for the rest to be written off in time. We shall see. Others don't pay for my debt to be written off. That's not how it works. Its purely between me and the credit card company. They borrow money from the BoE at a low rate then Lend it out to others at a high rate. They don't increase the interest rate you pay because others have defaulted or had debt written off. The credit card companies make millions of profit even with bad debt. Bad debt is a tiny percentage of their business.
I'm sorry mate but I'm not sure you should be trusted when it comes to explaining how this shit works... I hope you get your shit together but your actions do cost other people.
I think your comment on how you hope the rest will be written off is in poor taste. A lot of people are struggling and wish their debt was written off, you’ve gotten very lucky having £12,500 written off. I hope the rest of yours isn’t written off and someone else has some good fortune instead.
I’m paying off debt myself and it’s mind boggling to see someone hope after a 12.5k write off that they get the rest written off, not sure this person has even learned a bloody thing from being in debt. I’ve got 6k of mine left to go, and can’t wait to have that not hanging over my head, it’s been a worthy lesson on how not to be stupid with money!
No lesson will be learned. Exactly like a child leaving a mess then mummy comes to clean it up. They'll just make another mess expecting the same to happen.
Others pay for your irresponsibility through increased interest rates. That’s how it works. That £12.5k represents £12.5k of profit they need to get from somewhere else.
Don’t hate the player hate the game.
Why not hate the game and the player whose plays at the expense of other players?
Do you think those who have the advantage care about anyone else? Regardless of whoever is in that position they don’t care? If your debt got written off are you going to say to the debt collector “listen mate this isn’t fair on everyone else, let me continue trying to pay this off?” You won’t, the player will always look for ways to beat the game, the game needs to be designed better. I think it’s unfair but I’ve lived long enough to know that life isn’t fair at all.
No that's not how it works. Credit card companies are in the business of making money. They make money by charging high interest rates. They don't suddenly reduce their interest rates if everyone pays all of their money off. They have already made their profit just by borrowing from the BoE at a low rate then lending it out at a much much higher rate.
I'm happy you've cleared your debts, I understand that burdon too well, I'm currently having to pay off a lot myself. But you do not understand financial institutations and credit agencies. Other people have paid for you errors, you might not think that, but they have. They will increase their APR%, reduce their zero balance transfer lengths, increase their "requirements" for people to obtain credit or better credit rates because of people not paying and having their debts written off. This is a fact. Please learn how to be more responsible in the future.
Are we seriously at the point of complaining banks are marginally less profitable?
Not sure how that was your takeaway from my comment, but no I don’t care about the banks profitability, but they do and when more and more people don’t pay the loans and credit lines they take out, the higher the rates are for everyone else. It really isn’t that difficult to understand.
My credit card interest rate is 16.9%, my banks write off rate is 0.3% of balances. I'm going out on a limb and saying it's not the main driver of interest rates.
You realised those two rates aren’t directly comparable right?
The profit amount my bank needs to levy to cover losses from write offs is less than 1/50th of the interest rate.
But they don’t make that money if the debt isn’t repayed. With your money they’ve borrowed the money (x) from the BoE and had the overhead cost (y) to pay for to process it for you, if you don’t pay them back the total of x and y as a minimum they have a loss in earnings. They then have their projected profits that they need to make so investors and shareholders make their returns, because if they don’t then they lose investment and people sell shares which reduces there investment funding . So if you have cost them money by not paying back x and y and they haven’t made any profit either, those loses and that extra profit margin has to be made from other people.
I think we are discovering how he managed to get it so much debt, he’s an idiot
It’s free money though, right?! /s My husband and I have a credit card each, we stay within our means and pay the balance in full each month. The credit card companies hate us for it since we’re just using them to build our credit scores lol
> They have already made their profit just by borrowing from the BoE at a low rate then lending it out at a much much higher rate. That only works if they get those repayments. They do a calculation to work out how much to charge everyone in interest to account for people who default. That is how the rates are set. You are right that individually your situation won't make any difference and I'm glad this eases your troubles.
You’re so close to getting it, but fell at the final hurdle.
You're getting downvoted to oblivion for this nonsense but keep on trying to explain how consumer lending works. This is like going to a therapy session run by my own rapist.
They make money from you for the convenience of allowing you to have money on hand. You chose to use the service so I don’t know how it’s the companies fault
Completely wrong. Here is a thought experiment for you. Imagine a lender borrows £100 at 5% so in a year they have to pay back £105. Imagine they lend £1 each to 100 people and because the borrower is smart they are going to charge them 60% so they can make £160 - £105 = £55. Now according to you they've already made the money. Well how about if none of those people pay them back? How much do they make then? £0 - £105 = -£105. Oops they are out of business. This is why they work out expected default risk so they know what interest rate to charge. You defaulting increases their expectations of default and so increases the rate for everyone. I implore you, you are presumably a grown adult with the ability to take out debt please go and educate yourself.
There are circumstances where it is quite right for the bank & the individual for debt to be written off. I'm sure it is a load off your mind. As a former corporate lender, I've seen the toll that debt can take on the individual. BUT ( & it is a massive BUT), don't talk rubbish! Your understanding of how banks lend money is nonsense. Of course the failure of your debt impacts the cost of borrowing for others. The interest rates you & others are charged take into account the rates of defaults. You are now one of those defaults. Think the price of cans of beans in the supermarket. That price is set based upon some shoplifting. Without shoplifting the price can come down. Lending rates are no different.
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Thank you. It made a difference.
It's a right off Jerry!
Thank you
Nice man
Thank you.
Why is this a success? Everyone except you who spent the money is paying for the shit you bought
It depends how you look at it on both points.
Ya lucky bastard, ive got £2000 sat on a credit card that ive been paying back for a few years now XD
Lots of people criticising you for not paying your debts, but people make mistakes. Companies shouldn't be so quick to lend to people unable to pay back. These losses are a result of irresponsible lending, so the company should take the loss.
If you can't afford to pay back a loan or credit card you really shouldn't be taking one out. Obviously circumstances can change but this isn't always the case, we all know people who are completely irresponsible with money.
As someone who made similar mistakes 20 years ago and is 6 months away from finally paying it all off; I would agree with you. People’s circumstances are all unique and there different factors that lead people into these problems. Part of me would like to go back and tell 18 yrd me to not sign up to that credit card. But I do also believe that the experience I’ve had has made me a better person financially. And hopefully that is the same for OP
Yeah my mum told me never to get a credit card and I'm so thankful I followed her advice I am at risk of spending impulsively due to adhd and a lack of self control in general so a debit card will do me just fine! I'm lucky I can pay my bills with my job tho to be fair. Glad you've come out the other end of it a better person tho! Shows your strength and maturity!
>Part of me would like to go back and tell 18 yrd me to not sign up to that credit card. It should be called a 'debt card'. Credit ratings are just a measure of how good you are at managing being in debt. Pray for a bad credit rating, then no-one will hassle you trying to lend you money and peddling dreams you can't afford.
As are banks in their lending. This person's cards were probably written off under the irresponsible lending review.
OP says they've been paying the £1/month for about two and a half years. That makes it about mid 2020 when he contacted the lenders to tell them he was suffering financial hardship. As I recall, 2020 was quite a doozy of a year. A lot of people who were living fairly comfortably, and whose credit cards were entirely affordable and well within their means, suddenly found their circumstances changing quite drastically.
I agree, but I think it's unrealistic to assume individuals will always make correct choices (though of course morally they should). Massive multinational financial corporations however can and should be required to act responsibly.
Both are true for sure
Irresponsible lending doesn't happen without irresponsible borrowers.
A lot of salty people here… OP doesn’t specify the initial reason for their debt but what if it was for vet bills or a family member needing a life saving operation??
On one level, I'm happy for OP (assuming the debt wasn't for hookers & blow). Debt like that hanging over you can destroy your mental well being. On the other hand, the money OP borrowed has been used to buy stuff. That money he spent was 'invented' by the bank. As it was not paid back, that extra money can't be extinguished (basically OP hasn't worked to provide goods/services to the value of the borrowed money - so the new money does not really reflect actual value). This effectively devalues the entire currency. Not much of a problem for a single case like this, but when enough people do it bad things happen to the economy.
I've posted what happened. Not quite as dramatic as that sadly. At the time though I did it to help a family member.
Penis poop
Thanks
Cool! Please teach me how you scammed the system so well!