Unsecured debt and Credit card Debt.

Duffy99

18 months ago I took out a term loan to clear credit card and overdraughts from a failed business, This was a term loan for 30k all the credit cards and overdraughts were with tsb at the time they would only do a loan over 4 years which was and is tough.
I have now reduced this by 9k so it is 21 k owed now. I have a Credit card from the business which TSB refused to incorporate into the loan as it was on an avante catde at the time of 8k I pay 300 per month to Avant Card to reduce this but at that rate of payment it does not go down. I own my own house mortgage free, I am at the moment asking PTSB to increase my loan again to 30k to clear the credit card debt 0f 8k. I am under pressure as the 1100 a month is hard to do every month and very hard when the debt on the card is not reducing,
if they ptsb refuse to give me 8k on to the term loan and I decide to stop paying them for a few months so I can pay off the credit card and get it cleared. What action can they take against me I would resume payments again once the card is reduced.
I held my hands up to PTSB at the time to clear all the debts of the business and to be honest they were sickening to deal with and unsympathetic to the failure of the business. If they had incorporated the other debt and given me the loan over 10 years it would have made the situation so much easier for me.

matt70iu

Hi Duffy99

First off, sorry to hIear about the situation you now find yourself in.

I hate to see business fail, especially cosidering the fact that you had the guts to go out and give it a go.

Around 6 years ago, I was in a similar position to yourself with MBNA (now Avent) and Bank of Ireland.

I informed all parties that I was in trouble and would likely have to default on amounts owed. (around 40k in total). All advised there was nothing they could do until I defaulted???

I was was out of work and ended up having to renegotiate. It affected my credit rating to the point that it's only now that I can even consider applying for any sort of credit.

Solicitors letters coming through the door and all that. Spoke to the banks and kept paying what I could. They never brought me to court.

Fast forward to now an I only owe 2500 to boi and nothing to Avent. The main thing to do is to keep communicating with them.

Tell them what you can afford and pay it. Keep talking to them etc, but if you do decide to cut back on payments etc, remember that your ability to borrow in the future will be affected.

Best of luck

Matt

Duffy99

Thanks Matt. I find that they are forcing me into default and I want to avoid that as I want to pay just need more time or put it all into one loan, I feel if I default I might as be hung for a sheep as a lamb and default big!!! At least I can save up a nest egg before I start paying again!! My credit rating to Date is 100% perfect and if I have to default to clear my credit card I will!!!