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Starting payment plan on two Irish credit cards

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Posted

I'm struggling to pay the minimum payments on two of my Irish credit cards (MC and Visa with MBNA). The debt comes to almost 12k. I rang MBNA yesterday and they said that I can apply for the interest to be stopped and to start paying back the amount over 5 years, which should be about 200e a month. It will affect my credit rating in Ireland for 6 years but I'm ok with that. What I want to know, is will it in any way affect my credit rating in Germany? MBNA know I'm living in Germany and have my address etc.

Sorry if this has been answered before but I can't find it anywhere.

Thanks :-)

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Posted

Fortunately for you, German SCHUFA is in no way connected to the world or universe outside Germany. so whatever you do in Ireland has not effect on your credit rating here in Germany.

Cheerio

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Posted

Fantastic, thank you! Does that also mean I can get a visa/mc here? No intention of getting anything close to the limits I had on the last ones - I've learned my lesson the hard way that I can't be trusted with credit cards for now - but even having a card with €300 would mean booking flights etc would be a lot easier. If it was implied in your answer that I can still do this, then my apologies for asking the same question twice... I just find it hard to believe that the big credit card companies wouldn't have some sort of system in place for checking that you hadn't messed up with them before, regardless of what country you were in.

Thanks again :-)

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Posted

I suggest you get a prepaid credit card: http://translate.google.de/translate?hl=en?sl=auto&tl=en&u=http%3A//www.kreditkarte4you.com/kostenlose-prepaid-kreditkarte.html

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Posted

As far as I know the credit card companies don't care about your risk because they don't issue any cards and only provide services (and the brandname) for banks. So even though it might be a visa credit card, you actually get the credit from your bank.

So if you're trustworthy or not solely depends on the bank you want to get the card from, some are quite restrictive (the cheap ones) some not.

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Posted

Ing-DiBa offer a VISA debit as standard on the Girokonto. Money goes straight out of your account - perfect if you only need it for flights. You can also check if the airline allows payment by lastschrifteinzug - direct from bank account.

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Posted

99% of credit cards in germany are in fact charge/debit cards. So you would pay them off in full at the end of the month instead of a minimum payment.I personally find it a better system-stops me going wild with plastic money when I know the bank is going to take it out of my account at the end of the month anyway.

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Posted

Thanks all for the advice, I'll definitely look into the prepaid credit card, I'll ask my bank about the charge/debit card option too.

I've since been looking into how the whole payment plan process works, looks like MBNA are not going to be the easiest to deal with... plenty of online horror stories about how difficult it is to get them to agree to let you do a payment plan. Also, it ruins your credit rating for ELEVEN years, not six - 5 while you're paying it back, then 6 afterwards.

General advice seems to be to let it be sold on to a 3rd party (ie debt collector) as they are actually easier to deal with, will usually agree to a fairer payment plan and your credit is only ruined for 6 years. I don't have any intention of going back to Ireland any time soon, but knowing that I'd be in my 40s by the time I had the option to do so... it's making me think twice.

Another option I'm going to look into is keeping squeaky clean finances for the next 3 months (and hopefully onwards!) and having bank statements with which I can apply for a loan with SMAVA to pay off MBNA at hopefully a reduced amount (which they suggested would be possibly around 8k of the 12k owed).

Does anyone know if there's a possibility of MBNA selling on my debt to a German company if I don't get this sorted out? I've absolutely no intention of trying to avoid paying back the money, just to clarify! I just want to do it with the minimum hassle and penalties (obviously).

Thanks again.

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Posted

Have you read through the various threads on dealing with MBNA on the askaboutmoney forums? Lots of good advice on there for how to deal with them in general.

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Posted

If I was in your situation(and I have been),I would get a bank loan and pay the debt on both cards. Shouldn't be a problem as long as you've had a job for a while.

Some number crunching for you. Bank loan 10,000EUR payed off over 3 years= monthly payment 290-300EUR. Total payed 10,440- 10,800EUR. Over 4 years circa 225EUR per month. Just check the comparison websites for loans and tick the box for "Umschuldung".

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Posted

Jeanie, that was where I first started reading about how much hassle other people had had from them - I'm just glad I haven't given them permission to use my phone number to contact me (they asked if I could do that when I called them last week and I thought better of it, thank god as apparently they call up to five times a day with aggressive agents from foreign call centres). I'll go back and have a look at what the most recent advice is.

TheCornishman, I'm definitely going to try and get a loan in a few months, but I don't think I'd qualify for one right now. I started a new job 3 months ago and (I don't know if I should be saying this but it is relevant) only half my pay goes through my bank, so my bank statements don't look as good as they could. I'm hesitant to put all my pay into my bank but I don't see any other way to make me look more qualified for a loan at the moment, at least for the next three months. Apologies to anyone who is offended by what I guess is tax evasion, I know it's not ideal.

Also, "Umschuldung", is that consolidation? Translator isn't being too helpful :-)

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Posted

Morning,

Debt consolidation or debt restructuring.

As long as you have been registered for a certain period of time at your present address and you can supply you last three wage slips(Lohnabrechnung) it shouldn't be too complicated. They are not really interested whether it all goes into one bank account or not. Perhaps half goes into your "normal" account and the other into your savings account.

Just be realistic on the self assessment of your monthly costs. Then you know how much you really can afford to pay back each month without it being a struggle.

Good luck

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Posted

Just had a schufa ( German credit check) done, and they have nothing of me from Ireland or Australia. So i'm guessing they will not be aware of your credit rating or issues in Ireland. best gather few more months here, and then start new here. not mentioning anything about Ireland when applying for anything.

Got a credit card easy peasy with deutschebank. it is as someone above has mentioned, a debit credit, whereas they take all you owe at the end of the month from your normal account.

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Posted

Targobank will give you a loan to payoff the Irish CC's. Contact tanja.wendlinger@targobank.de. She speaks ok English and is mobile. Meaning she will come to you and setup the loan.

But, you will have to have a regular income and switch your paychecks into automatic transfer to Targo.

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Posted

As many people have mentioned above, a VISA debit is a possibility. For someone living abroad, there's always the potential for an emergency trip back home. I imagine that's why a VISA is needed once the other two "go offline" / be paid. Obviously, going into more debt is not a good idea, but it would be good to be able to get home & visa is probably the easiest way... :( it's a shame that other payment options aren't more ubiquitous.

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Posted

Morning,

Debt consolidation or debt restructuring.

As long as you have been registered for a certain period of time at your present address and you can supply you last three wage slips(Lohnabrechnung) it shouldn't be too complicated. They are not really interested whether it all goes into one bank account or not. Perhaps half goes into your "normal" account and the other into your savings account.

Just be realistic on the self assessment of your monthly costs. Then you know how much you really can afford to pay back each month without it being a struggle.

Good luck

Two issues: I'm between apartments at the moment, staying in a friend's for a month then moving into another place in January. Also, my pay isn't all on my payslip, though it can be organised. That's why I think I may need three months to get everything in order (new anmeldung, bank statements, payslips) before I go down the loan route, which is looking like the most likely way now. I can definitely afford loan payments, I've done calculations and it would have to be very high interest and/or short-term to be less than my minimum payments now.

Thanks :-)

Ever think of not getting a credit card before sorting out your original two?

Absolutely, however, I don't know about anyone else, but I don't want to have to rely on friends and family every time I need to book something (much as I try to use Paypal or lastschrift for everything if I can). That's why I'm really happy to hear about both the prepaid credit card and the fact that even if I get a Visa card it will be a debit card.

Thanks all for your comments and advice, honestly you're all helping so much :-)

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