Is it Possible to get Credit Card Debt Written Off?
If you feel that you will never be able to pay back your debt entirely, then you can opt for a debt solution which would involve some or all of your debt being written off.
Depending on the amount of debt you have as well as your financial situation, the best option for you may vary.
In this case, I suggest contacting an independent advice service or charity such as StepChange or Payplan. They will help you choose which debt solution would be best for you and they will also help you draw up the proposal for the solution.
Can They Take Your House for Credit Card Debt?
The short answer is no but there can definitely be some nuanced cases where your house could be in danger if you don’t pay off the outstanding balance on your credit card.
Debt on Your Credit Card is a Non-Priority Debt
The debt on your credit card is a form of unsecured debt and unsecured debts are treated as non-priority debts in general. This is because they have far lesser consequences if you are late in paying them off as compared to priority debts and secured debts such as mortgages and income tax arrears.
If Court Action is Being Pursued Against You
If you take too much time in paying off your debts then the credit card company could take out a County Court Judgment (CCJ) against you. If you fail to make payments towards your CCJ, then your assets such as your house could be seized.
For more information on whether or not they can take your house for credit card debt or not, you can click here.
What Happens to Unpaid Credit Card Debt if You Move Abroad?
A lot of people think they’ll be able to escape their debts if they travel to another country but that is often not the case.
In today’s digital age, it’s very easy to track people down. Not only will you not be able to escape your debts by moving to another country but it could even worsen your situation.
The debt collection process may become a lot more complicated and your creditors may opt to pursue court action against you.
What Happens to Unpaid Credit Card Debt after 7 Years?
Many people believe that the debt on their credit card is written off after 7 years. There are several things wrong with this belief.
Firstly, the debt on your credit card becomes unenforceable, it’s not written off. This means that your creditors cannot pursue court action against you but they can still contact you about it. The debt still technically exists.
Secondly, it does not become unenforceable after 7 years, it becomes unenforceable after 6 years.
There are several conditions that need to be met in order for the limitation period to be valid and for your debt to become unenforceable.
If you’re unsure whether or not a debt has become unenforceable, I suggest looking up your credit file for confirmation. You can also contact an independent advice service or charity to get free debt advice.
Can You Balance Transfer Someone Else’s Credit Card Debt?
Balance transferring is something that people do in order to reduce the amount of money they owe on their credit card.
As I mentioned earlier, the interest rate on credit cards is usually quite high. If you can find a card that has 0% or a low interest rate and transfer your balance to that card, you can effectively reduce the amount of money you owe by a lot.
While a lot of people do this for themselves, it’s generally quite hard since you need a good credit score in order to secure a card with zero or low interest.
Another thing that people do is transfer someone else’s debt onto their account. This can be an informal agreement between you and the original debtor so that they are able to reduce their debt.
This debtor could be a loved one or a close relative that may have requested this to you so they could reduce their debt because your card has a lower interest rate as compared to theirs.
They would then make their minimum payment to you every month and you would then pay it to the credit card company.
Alternatively, it could be if you would like to pay off the debt for them yourself.
While this is definitely possible, there are some things you should make sure you know before you balance transfer someone else’s debt onto your account.
What Happens to Debt When You Die?
There’s a lot of confusion about what exactly happens to your debt after your death.
When you die, any debts that you left behind are paid off using your estate.
The executor of your estate is the one who must make sure that all of your money and assets are distributed amongst your creditors fairly and according to the priority order.
If the money and assets in your estate are not enough to pay back your debt in their entirety, then the debt is generally written off.
What Happens to Credit Card Debt After the Death of Your Spouse?
As I mentioned earlier, any debt that a deceased person leaves behind is paid for by their estate. Their loved ones are not responsible for their debt, including their spouse.
Keep in mind that even if you were an additional cardholder on your spouse’s credit card, you will not be liable for the outstanding balance on it. Only the primary cardholder is responsible for the outstanding balance on a credit card.
However, if you owned something jointly with your spouse, there could be a chance that asset could be seized from you.
Credit card debt burdens a large majority of Brits and many of them find it hard to pay back the money effectively.
While it can definitely seem overwhelming at times, I can tell you from experience that if you make sure to be cooperative with your creditors and seek advice from professionals, you can become debt-free in no time.