QLD Paying Off Credit Corp Debt - Help?

[Larni McCarthy]

Yet another credit corp question. I believe I've had this debt since approx 2010 again another Commonwealth Bank credit card. I have paid approx $23500 to credit corp since 2010 and my debt was only approx $20000. I haven't made a payment since April 2018 so now they are chasing me for another $20000 which is simply interest. They have already given me a bad debt, so i figure i have nothing to lose in not paying them the rest of the interest owed?

They have offered to reduce my debt to $18000 if i pay a lump sum which I don't have, I said to them I'll pay them $1000 for them to go away for good, which they didn't accept. They suggested that if I pay $1000 by Monday 16th July 2018 then they will freeze my interest but I would still need to pay off the $20000.

Help, what do I do, considering that I have paid back all of my debt plus some?

 

[DMLegal]

I don't mean to come across as the Devil's Advocate however you haven't paid off the 'debt', you have repaid the money you borrowed with about $3500 interest which over 8 years works out to be about to be far less than the normal credit card interest rate (about 4.1% p.a by my calculations).

I think ceasing with payments in April, even if you felt like you didn't owe them anymore money, was unwise. In any event, there are a few options depending on your circumstances: (1) Are you suffering financial hardship or would you if you were to start making repayments again? (2) Have they provided you with all relevant documentation relating to the debt, such as the contract, payment schedules etc. (3) If interest is accruing while they have had the debt, at what rate is it accruing (is it more than the amount the credit card would have accrued at under the contract?).

 

[settle]

Pls do not pay credit Corp nothing at all

Where is the debt from which bank that sold it to credit Corp

 

[Larni McCarthy]

Hi i dont think your coming across as the devils advocate, i am thankful your bring honest. I agree with your calculations also. I hadnt meant to stop payments although i think because there wasnt enough money in the account when the transfer was meant to happen it simiply cancelled its self out....(1) im not suffering financial hardship but it does make it tougher on my finances thats for sure and at times i dont have anything left in the tank to pay it, i dont a luxuries life either (2) they havent provided me with any documentation relating to the debt, nor any rates info, all i know is that they are charging me approx $11per day. Cheers

 

[Larni McCarthy]

Also they want me to pay $1000 by tomorrow to freeze the interest, should i try and find the money and pay it?

 

[Larni McCarthy]

Pls do not pay credit Corp nothing at all

Where is the debt from which bank that sold it to credit Corp

It was from Commonwealth bank.

 

[Larni McCarthy]

It w

As from Commonwealth bank.

They want me to pay $1000 by tomorrow 16/07/18 and if I do they will freeze my interest to 0.00% but I will still need to pay off the remainder of the debt [which is only made up of interest]...should I pay them?

 

[Bill Murray]

Ask them for a full break down of the debt including how they calculated interest, what interest and what fees they've applied.

If what you are saying is accurate then that's absurd and a complaint will certainly see it reduced.

If you've paid $23,500 over 18 years then you have been paying $25 a week. $25 a week will never see a $20,000 credit card debt cleared. Ever. I'm not sure how long you have been making repayments for though.

 

[Larni McCarthy]

Ask them for a full break down of the debt including how they calculated interest, what interest and what fees they've applied.

If what you are saying is accurate then that's absurd and a complaint will certainly see it reduced.

If you've paid $23,500 over 18 years then you have been paying $25 a week. $25 a week will never see a $20,000 credit card debt cleared. Ever. I'm not sure how long you have been making repayments for though.

Thank you Bill, I will ask for that information. I have been paying $100 per week since approx. 2010. I might also ask them to provide a statement showing my payments etc.

 

[Bill Murray]

Misread that, did they approve $100 a week?

That's too low without hardship provisions like suspending or reducing interest.