Author Topic: £13,000 in debt but need to keep a good credit rating!!  (Read 23608 times)

Steven Jackson

  • Hero Member
  • *****
  • Posts: 281
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #75 on: Sep 08, 2010, 11:59:25 AM »
Hi Mikkilaw
 
Any more news from MBNA? I was speaking to a colleague earlier this week and they agreed with me that MBNA should come round to agreeing your proposal given time. It is also possible after a few months that they will see the debt to a third party. If this happens, then unfortunately you will have to restart your negotiation with the new owner of the debt. However, this should be easier as they will have bought the debt for a song and will be more than prepared to receive regular payments.
Debt Expert
ivainformation.com

mikkilaw

  • Sr. Member
  • ****
  • Posts: 53
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #76 on: Sep 13, 2010, 07:59:36 PM »
Still no developments with MBNA I'm afraid. As of 12/09/2010 I will have reached status 2 so maybe they wil either step things up or else be more willing to negotiate? Like you say, if the debt does get sold on that could end up being a blessing in disguise!!

Steven Jackson

  • Hero Member
  • *****
  • Posts: 281
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #77 on: Sep 14, 2010, 04:26:45 PM »
Thanks for the update Mikkilaw
 
I think the answer with MBNA is just give them time. Remember to continue to make your proposed payment to them though. This will certainly work in your favour. It will be interesting to see what the outcome is. Whether they sell the debt or come round to agreeing the proposal.
Debt Expert
ivainformation.com

mikkilaw

  • Sr. Member
  • ****
  • Posts: 53
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #78 on: Oct 14, 2010, 06:32:36 PM »
Sorry for long long absence. Breakthrough with MBNA: Apparently at the end of October my account "cycles" - this will mean that the "non-essential" spending on my card back in June will go off the records, or something. This will enable them to conducat another review of my account. In the meantime, I have been paying the calculated £46.69 a month but it's been like chucking money in the river, as the interest and charges have not been halted.

Things are going well with all my other creditors, and none as yet have issued defaults against me.

mikkilaw

  • Sr. Member
  • ****
  • Posts: 53
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #79 on: Oct 15, 2010, 10:39:32 PM »
To anyone else in my situation I would say this: Be pragmatic, use your common sense, make use of forums such as this and alas, the light at the end of the tunnel will soon be visibile.

Steven Jackson

  • Hero Member
  • *****
  • Posts: 281
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #80 on: Oct 20, 2010, 04:01:11 PM »
That does sound like good news Mikkilaw. Let us know how you get on with MBNA after they have conducted their "review". You are doing the right thing by continuing to make your payments to MBNA. Once you have been doing this for 3-4 months with any luck they will start to see sense and reduce or stop their additional charges.
Debt Expert
ivainformation.com

solvemybadcredit

  • Full Member
  • ***
  • Posts: 21
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #81 on: Oct 31, 2010, 01:45:14 PM »
Hi Mikkilaw
 
I think Lee and Dean are right. Far better to consolidate the cards with a fixed term loan which means you know exactly where you stand and when the payments and loan will finish.
 
One word of warning. If and when you do get your loan, you MUST cut up your cards and never use them again. Cancel the accounts so you are not sent new cards when the old ones expire! I have seen countless debt problems get a lot worse after someone takes a consolidation loan but then gradually uses cards again for "emergencies". Before you know it your debt has doubled and you have a far more serious problem.
 
Good luck with getting the loan


Hi, can you please let us know the monthly repayments, too? 
Loans would be a better solution for you for sure, but you just applied for one, or just enquired?
If you haven't have a look at comparison sites to have a look at lower APR products and check your credit rating. 
Have you been making the repayments on time? Then it is OK with your employer. 


As far as I know if you work in the financial services, there should be an option for you to discuss this with a representative, union member or manager. Do you not qualify for staff loans or staff discounts?
I help people sort out bad debt.
http://www.solvem

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #82 on: Nov 01, 2010, 06:00:51 PM »
Hi solvemybadcredit
 
Unfortunately Mikkilaw was not able to secure a loan due to his income and poor credit position. As such, the debt management plan route that he has chosen is absolutely the right solution for him and did not involve him borrowing any more money.
Debt Expert & Author
beatmydebt.com

solvemybadcredit

  • Full Member
  • ***
  • Posts: 21
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #83 on: Nov 01, 2010, 09:43:38 PM »
Thanks for the update, James,  unfortunately that seems to be the right way to go down. Does that involve IVA-s that he has to let his employer know about? Let us know how you're getting on, Mikkilaw!
Good luck!
I help people sort out bad debt.
http://www.solvem

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #84 on: Nov 03, 2010, 04:29:27 PM »
Hi Solvemybadcredit
 
If you carry out a debt management plan, you will normally not have to tell your employer. This is the same if you carry out an individual voluntary arrangement (IVA). Again, you do not normally have to tell your employer. However, having said that there are certain jobs which which would need to speak to your employer before doing an IVA. One of these is if you are a member of the police or if you are employed in certain financial services positions.
Debt Expert & Author
beatmydebt.com

solvemybadcredit

  • Full Member
  • ***
  • Posts: 21
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #85 on: Nov 03, 2010, 10:01:42 PM »
I got a call today from the bank - apparently there is now a "no loan" status on my account, whatever that means. I still intend to keep the appointment though, as I'm interested in what they may have to say. I have not exceeded my overdraft limit or had a cheque or direct debit returned unpaid for years, and likewise with all my cards. But the sheer volume of credit versus my income is probably having an adverse effect on my credit rating.

I used to use the Experian Credit Expert Service to track my credit rating, but I didn't feel that the process they use for calculating credit scores was necessarily that accurate. Also the monthly charge was an unwanted expense. Even when my rating was in the "good" category accoring to them, I still got turned down for 0% cards and reasonable priced loans.

Regarding my emloyment status, I have a meeting with my manager next week to discuss in more detail what the exact requirements of my role are in terms of credit status. I have been totally open with the management team at work about my situation. After all, I know they do the checks because I saw them on my Experian credit report!!


Mikkilaw, I don't think that your employer will have problems. As long as you are honest with them it is OK. I used to work in Financial services for long years and it is the worst thing you can do is to try and keep it quiet. They will help you in any way as that is your job, the only point the employer has is if you are in trouble and don't tell them, that might be more risk for Fraud. But you are coming clean, and who knows maybe will get some help from your manager, too. 


Looking forward to hear about that!
Good luck with the bank!
Laura

I help people sort out bad debt.
http://www.solvem

solvemybadcredit

  • Full Member
  • ***
  • Posts: 21
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #86 on: Nov 03, 2010, 10:03:36 PM »
Hi Solvemybadcredit
 
If you carry out a debt management plan, you will normally not have to tell your employer. This is the same if you carry out an individual voluntary arrangement (IVA). Again, you do not normally have to tell your employer. However, having said that there are certain jobs which which would need to speak to your employer before doing an IVA. One of these is if you are a member of the police or if you are employed in certain financial services positions.


James, he's working in an FSA regulated field, so I think he has to... 
I help people sort out bad debt.
http://www.solvem

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #87 on: Nov 04, 2010, 04:33:55 PM »
Hi Laura
 
You are quite right to say that people working in financial servces fields (especially if regulated by the FSA) should always speak to their employer first before embarking on any kind of debt management solution.
 
Mikkilaw did have a meeting with his manager back in June and was given the all clear to do either a debt management plan or IVA which was a weight off his shoulders. Given the level of his debt and amount of disposable income, he went down the DMP route which he has negotiated himself.
 
My understanding is that it is going well so far but we are waiting to hear if MBNA will finally agree to freeze their interest and late payment charges as his other account have done.
 
My fingers are crossed for you Mikkilaw. Did you hear anything from MBNA at the end of Oct as hoped?
Debt Expert & Author
beatmydebt.com

mikkilaw

  • Sr. Member
  • ****
  • Posts: 53
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #88 on: Nov 14, 2010, 09:55:45 PM »
MBNA have finally assigned me a dedicated account manager, who has provisionally accepted my offer although it is still not certain regarding the freezing of charges.

James Falla

  • Hero Member
  • *****
  • Posts: 655
Re: £13,000 in debt but need to keep a good credit rating!!
« Reply #89 on: Nov 17, 2010, 05:46:55 PM »
Hi there mikkilaw
 
At least that is progress on the MBNA front. Lets hope that this dedicated account manager will review your statement of affairs and realise that you are in a difficult position and decide to help you by getting the charges stopped. Do you know when you will get any further confirmation? It would be good to hear what decision MBNA finally take.
 
Good luck with it
Debt Expert & Author
beatmydebt.com