Should you tell the banks everything ?

Hello everyone, I am new to this excellent website. I have over 27,000 euro in Credit Card Debt. I won't go into what happen to me here, but just lets say, many in Ireland have falling since the banks want under in 2009 and I am one of them !! I am with a Debt Management company which there is a fee very 4 weeks. I have to do a review very six months on my income. I am paying a very small fee to the banks monthly, and they have since 2009 confirm that they have agree to the fee. Just the other week I was told in my job that I may be getting more work and that my pay could be going up.
My question here is, should I tell the banks that my pay is going up, because if I show that I have a little more money, they will want me to pay more back ? Should you tell the banks everything ?
Please note I am just about paying my bills and living off what I am paid from my Job.
I hope you can understand what I am saying.

Thank you.

back cat said:

I have over 27,000 euro in Credit Card Debt.

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What rate are you paying on this?
Do you have other debts?
Do you have any savings/assets?

I am with a Debt Management company which there is a fee very 4 weeks.

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What does this mean?

I am paying a very small fee to the banks monthly

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Do you mean "repayment" (on the CC debt)?
Or do you actually mean "fee"? If so for what?

My question here is, should I tell the banks that my pay is going up, because if I show that I have a little more money, they will want me to pay more back ? Should you tell the banks everything ?
Please note I am just about paying my bills and living off what I am paid from my Job.
I hope you can understand what I am saying.

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Not really.
On the face of things (and you really need to post a more comprehensive summary of your overall financial situation - e.g. see here: http://www.askaboutmoney.com/thread...arrears-and-negative-equity-questions.170704/) you really need to tackle this CC debt as otherwise it's never going to go away and may, in fact, increase.

ClubMan said:

What rate are you paying on this?
Do you have other debts?
Do you have any savings/assets?

What does this mean?

Do you mean "repayment" (on the CC debt)?
Or do you actually mean "fee"? If so for what?

Not really.
On the face of things (and you really need to post a more comprehensive summary of your overall financial situation - e.g. see here: http://www.askaboutmoney.com/thread...arrears-and-negative-equity-questions.170704/) you really need to tackle this CC debt as otherwise it's never going to go away and may, in fact, increase.

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Thanks for your input.
I am paying back two banks, ten euro repayment per bank per month because of my low income OFF the 27,000 and I pay a fee to the Debt Management company of about 39 euro per month. The CC debt is on hold so there is No increase.
I have No Savings, or so called assets ! Our home is not paid off, But we are on top of the repayments with this so far.
The Debt is in my name only and not my wife's name.
For myself to pay off this CC debt in my life time will be impossible because my low income.

I don't want to tell all my info on line as the banks may see who I am !!

Regards.

I can see a way of increasing your income by €39 a month.

Repaying €27,000 @ €20 per month will take you 112.5 years.

Guns N Roses said:

Repaying €27,000 @ €20 per month will take you 112.5 years.

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back cat.
See guns and Roses comments.
......................................
As things sit you are on the never -never -never sort train.
You really need to talk with an insolvency person to get closure to enable you to get on with your life.
Please do not continue with this drip job.
If you send me private note , I will put you in touch with Insolvency person .
You can use him or not but he will point you to closure.

By paying a paltry amount every month to the 2 CC companies,you are keeping the amounts live and current .
You state that you are paying your mortgage in full.If you are in negative equity now,you won't be at some time in the future,as a combination of capital repayments and house price inflation will work in your favour.
As you are in breach of contract on both cards,but they are both current,when either CC company sees positive equity,they can take action against you.
Of course,if you are already in positive equity,your position is getting worse with every repayment on your mortgage!
Have you taken professional advice about any of the debt options now available?
And what advantage is the debt management company to you?
What are you getting for your €520 p.a.?

Edit:My post crossed with Gerry's .Take his offer.

Hi Guys, Many thanks for your answers. I will answer you soon. I am working over the weekend. Thanks.

OK, in a nut shell this is what happen to me.

I was excellent at always paying my CC company's, and as the years want by they kept putting up my credit limit up with out telling me, and the other bank MBNA did the same by posting me two cards to my home. This was in the good times when there was lots of work for me to do.
Then the banks want under, most where starting to lose there jobs, I was one of them.
This was in 2009. By 2013 I was just about keeping up with the repayments on the CC, However, by the end of 2013 I could No longer pay the CC company's as my wife's wage was also falling by 300 euro a mouth with cut backs as a Nurse !!

So I called in a Debt management company to take on the banks, in fact, it got that bad with the banks, The debt management company had to call in there big guns from there UK Group to get the banks to back off.

After doing out a repayment Life Plan on what I could pay after bills and so on, the debt management told the banks what they where getting from me. The banks then registered me with the Irish credit bureau with a status of credit revoked !

Half of the credit was sold this year to another financial house, which I will not name here, and the other half of the credit is still with a main street bank. The said two have accept my offer of the low repayment until I do another financial review which once a year.

The repayments on my home is up to date, thanks be to God. I can not go down the road of insolvency as I have a very big credit union loan that is doing OK and should be pay off in 7 years time.

I went from been the top boy in the class room, to now a financial fugitive. The only thing that keeps me going is to know that there are thousands like me who have falling by the financial road side who will never be able to get out of this financial net in there life time.

What do the debt management company do for me.

At the beginning they had to fight for my rights.
They came up with a debt management life plan.
They pay my debt company's.
They take the stress away from me.
They do a financial review for me.
You can pick up the phone anytime if you have any queries from the banks.
Banks can not phone me, they must phone the debt management company at all times.
With a debt management company will show the Courts that you where trying to do something about the outstanding CC Debt.

Up to now I have been 100% straight with the banks on with I can pay them, but I may be getting a little more money soon from my job, should i tell them this ??

Many Thanks.

Hi Blackcat,

Have you tried getting a write down on these debts i.e. a full and final settlement? The extra money you are going to earn could go towards settling the smallest of your debts. I have some experience of dealing with DM companies so please feel free to ask any questions.

You needn't mention the creditor but what individual amounts do you owe?

Go to MABS, you need independent financial advice

What's special about the credit union that they get preference over any of your other creditors?
Is this repayment disclosed in your financial statements?

vandriver said:

What's special about the credit union that they get preference over any of your other creditors?
Is this repayment disclosed in your financial statements?

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The credit union is a secured loan, The C.C.'s are Unsecured because they have a high APR Fee's so by law they can only be Unsecured loans. Most could try and run if they could not pay back the Credit cards, but in my case I put my hands up and did my best to pay back something.

What is the credit union loan secured on?

Sounds odd. I've never heard of a CU loan secured on anything - well, other than CU shares.
If you have CU shares then you could possibly rationalise this specific loan by getting the CU to offset some or all of the share balance against the outstanding loan balance. From my experience you might have to battle to get them to do as they may tell you that it's not possible. It is.
Unfortunately very often the CU approach of requiring c. 25% or more of the loan to be in shares means that the borrower is losing out and sometimes paying effective rates of interest comparable to or higher than commercial lenders.