Need to Stop Paying my Credit Cards in the UK - Will I get away with it ?

[ali]

Ok guys - might start a big debate here I'm sure !

 

Here's our situation

 

• We've been in oZ for 2 years with my wife and family of 3

• Expect to get PR in the next few months.

• Looks like we will be staying and not going back to the UK for at least 5/6 years (if at all) as my kids finish their education. ( I want to stay ... wife mixed atm)

• Since leaving we have been paying minimum payments to our Credit card Debts (GBP 30k)

• We've kept up with payments (just) but have added to the debt whilst over here by paying for School Fees whilst on a 457 for the 1st 2 years

• We now have 4 UK Cards with almost GBP 40k

• We own a house in England with about 60k GBP Equity and we don't want to sell and want to keep the house as an investment.

Going to be honest here

 

Would like to simply stop paying the debt as I understand it will be written off in 5 years and the card companies can't touch us over here.

 

Question is can they make us sell our house ? Bearing in mind the individual debt is quite small with each card co - eg < GBP 40k.

 

I know it's wrong / stealing etc etc but I have no concious to the global banking industry TBH.

 

Would love peoples views !!

 

Scot

 

You know it's wrong, you know it's stealing ... you say you have conscience but yet you're asking for views. You might get some people who agree with you, and for those that don't they'll be accussed of taking the moral high ground i'm sure.

 

Personally, I think it's all the things you've said it is and I couldn't do it or live with doing it - perhaps you've got thicker skin.

 

I can't really remember 100%, but I think when we applied for Citizenship that there was a question about if you'd ever had any court judgements against you (might be dreaming this so don't take it as gospel), but if it is then they do check and your actions now, could have consequences. If the debt is written off, you may find you're black listed for credit if you return to the UK.

Edited March 17, 2012 by ali

[Greggers68]

Have you thought of selling up? With the money you receive from your property you could pay your debts off, freeing up cash on a monthly basis and investing whats left in a different, but cheaper, property.

 

Its just a thought, at least then you're doing the right thing and may still have a property for security.

[midwife2005]

Believe me they can put a charge on your house. I owned a house with my ex husband and when we were going through divorce procedings, the car that he had obtained on finance he decided to stop paying for. I bought him out of the house for £20000......on the day of completion (and the day he got his £20000) the car company obtained the right to put a charge on the house we jointly owned for the £35000 he owed on the car. When I received the letter telling me about the charge on the house the house was legally mine and my bastard ex husband had been given his cut....BUT the car company still tried to enforce the debt as completion and date of charge were the same day. I had to go to court, appoint solicitors the whole scenario was so stressful and upsetting for me. Eventually the car company backed down but believe me if they had obtained the charge the day before completion that charge would have been put on and I would have had £35000 less equity in my property because my ex husband seem to have exactly the same morals as you!!!

:mad:

[Goochie]

Scot - Take a read of this thread:

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?304615-It-is-now-apparent-that-it-will-be-practically-impossible-to-enforce-a-UK-debt-in-Oz

 

Says it all really

[LittleLakeGirl]

Wow! That is one helluva lot of debt is my first thought (I thought the couple of grand on my card was a lot).

 

My second thought is this. Don't just ditch the cards. Sell the house, pay off the cards, bank the difference and then pay what you were paying on your minimum payments into a savings account because I'm imagining at that rate of debt you'll soon make up the difference. Considering the current economic climate and the likelyhood that housing prices will never reach what they did in the early 2000's your 'investment' is likely at its peak. There is another thing to bear in mind, if you do default on your cards the lender can chase you through the courts in the UK even if you're not there, and if they discover you have property in the UK they can apply for an order to be placed on the property which means that the debt will have to be paid on its sale and you'll be no better off anyway. Do also bear in mind that if you are renting the property out & your cards are still registered to that address then you could cause your tenants all kinds of hassle.

 

Read here re charging orders http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/action_your_creditor_can_take_index_ew/charging_orders.htm

 

If you had no UK assets you could risk it if you feel morally comfortable with it but as it stands you could land yourself in real difficulties.

 

Just my twopenneth.

Edited March 17, 2012 by LittleLakeGirl

[Cazsmi]

Ok guys - might start a big debate here I'm sure !

 

Here's our situation

 

• We've been in oZ for 2 years with my wife and family of 3

• Expect to get PR in the next few months.

• Looks like we will be staying and not going back to the UK for at least 5/6 years (if at all) as my kids finish their education. ( I want to stay ... wife mixed atm)

• Since leaving we have been paying minimum payments to our Credit card Debts (GBP 30k)

• We've kept up with payments (just) but have added to the debt whilst over here by paying for School Fees whilst on a 457 for the 1st 2 years

• We now have 4 UK Cards with almost GBP 40k

• We own a house in England with about 60k GBP Equity and we don't want to sell and want to keep the house as an investment.

 

Going to be honest here

 

Would like to simply stop paying the debt as I understand it will be written off in 5 years and the card companies can't touch us over here.

 

Question is can they make us sell our house ? Bearing in mind the individual debt is quite small with each card co - eg < GBP 40k.

 

I know it's wrong / stealing etc etc but I have no concious to the global banking industry TBH.

 

Would love peoples views !!

 

Scot

If it's any use to you, we were kindly informed by the Commowealth Bank in London that should we take out a loan prior to our move to Oz, and then default on the payments, it would have no repercussions on our credit rating over here!

Yeah I couldn't believe the "advice" we were given.

 

We have a properety in th UK that is in negative equity, but luckily we have a tenant in it and that covers our mortgage. We have four credit cards but have paid off all balances apart from one and that't interest free until October and has less than £1000 to pay off.

 

Life in Oz isn't cheap, we all know the expense of cars ets, we've gone from a Lexus and Saab to and old Magna and an even older Jackaroo. However it was our choice to migrate and every morning I feel blessed that I'm here, living my own little version of "the dream".

 

I work, my partner has been looking for a job since we arrived, and hopefully she will be rewarded for her efforts soon. I agree with most people on here in that what you propose to do is morally wrong, sell yopur home and do the right thing.

I could do what you're planning to do but I couldn't live with myself, why didn't you sell up and clear your credit cards before you came?

 

It's up to you, and you should have probably kept your ideas between yourself and your other half.

Edited March 17, 2012 by Guest31881
repair quotation marks

[midwife2005]

What annoys me is the fact that you have carried on using the cards in OZ and added to the debt! I understand that people can genuinely get themselves into a mess with regards to debt but you have the money to clear it from the sale of your house but you obviously have no intention of doing that. You seem to regard that money as yours and even though YOU have spent that £40000.....that £40000 was someone elses money. Where would we be if everyone had that attitude?

[Kimanda]

why would someone with 30,000 debt already and know they cant pay it off - just keep adding to it? dont even say it was out of necessity cos if on a 475 visa you are working so therefore earning

 

I agree they shouldn't be adding to debt if they can't afford it. They should just sell their house. They're fortunate to even have one in this situation.

[Guest ScotinOz]

Folks we added to our debt over here because we had to !

 

Anyone wamts to share their experiences without being shot down ... pls send me a PM.

 

Scot

[pintpot]

If you want to be mercenary about it, sell your house, pocket the cash and then do a financial bunk. Just sayin', like

 

You'll be committing yourselves irrevocably to Aus if you do that to all intents. Which is a bit of a gamble given your wife's ambivalence. You need to be a bit careful regarding statutes of limitations (in particular make sure you aren't researching US sites where the law is much more clear cut). In the UK a creditor has a period within which they can seek a court order to recover a debt, and then there is another period after obtaining judgement during which they can seek to enforce. You can't just assume if you stop paying, after 6 years you're free and clear and can't be chased (still less so clear of credit blacklisting)

 

It's not a gamble I'd take, but then I wouldn't be running away from debts like that either. TBH I'd never be running them up in the first place, but it takes all sorts; I find it bizarre (see other post on this thread) that someone would borrow over £35K for a car, regardless of income. Seems senseless to me when it's a depreciating asset and you don't need to spend anywhere near that for any conceivable type of vehicle, but there you go. Some people have to have an X5, and others have to do whatever it takes to run up unsecured debts of £40K+

 

At the end of the day, as always, it's up to you. One thing I do know, though, and that is for a decision as serious as this, you must as a family be 100% together

[Freckleface]

To PIO members - next time you wonder why credit card interest rates are kept so high, remember this thread.

 

To the OP - if you follow through with this plan, I can't see that you are any different to any other criminal who steals something that isn't theirs.

[pintpot]

To PIO members - next time you wonder why credit card interest rates are kept so high, remember this thread.

 

To the OP - if you follow through with this plan, I can't see that you are any different to any other criminal who steals something that isn't theirs.

 

I agree with you....one of the pleasures of being over here as opposed to the UK at the mo is that whilst there's still plenty of lazy journalism, you don't have the blanket "blame banks for everything that has gone wrong since Eve said <Hey - those apples look tasty>", which is pretty much the level of "debate" you have had in the UK media in the past 4 years

 

In an environment where everybody is being told banks and other lenders are lower than scum all the time, is it any surprise people think it's OK to cheat them?

[Freckleface]

I agree with you....one of the pleasures of being over here as opposed to the UK at the mo is that whilst there's still plenty of lazy journalism, you don't have the blanket "blame banks for everything that has gone wrong since Eve said <Hey - those apples look tasty>", which is pretty much the level of "debate" you have had in the UK media in the past 4 years

 

In an environment where everybody is being told banks and other lenders are lower than scum all the time, is it any surprise people think it's OK to cheat them?

 

I credit people with sufficient intelligence to take responsibility for their own decisions. If they are that easily lead by the media perhaps they shouldn't be allowed to make their own decisions or sign contracts.

[Guest The Pom Queen]

Folks we added to our debt over here because we had to !

 

Anyone wamts to share their experiences without being shot down ... pls send me a PM.

 

Scot

Well hopefully you aren't living beyond your means here and you aren't one of these who rents a house at $900 pw when you could get one for $400pw

[keily]

Expect to get PR in the next few months

 

in this case u wont be paying the school fees u were on 457 ...so in theory more money in ur pocket ...why not use this to pay of debt ?

 

mrs keily

[pintpot]

I credit people with sufficient intelligence to take responsibility for their own decisions. If they are that easily lead by the media perhaps they shouldn't be allowed to make their own decisions or sign contracts.

 

Well, yeah, but people are led by the media all the time. Bit naive to believe otherwise. Everyone's opinion is influenced by the information they use to form it, and no one (including you or I) has perfect info, so we form opinions based on what we think we know.....plenty of which is going to come from a subjective media

[Freckleface]

Folks we added to our debt over here because we had to

 

Scot

 

If you really believe this I can only suggest that you can't afford to stay in Australia.

[Guest Guest31881]

I do not normally get involved with this type of thread as they always end up in one big argument. We all know that some members due to various reasons have ended up in Australia and left debts behind them. What I feel makes this different is the fact that the credit cards have been used to increase the debt while in Australia, so the debt has not been left behind it has increased since the OP arrived in Australia.

 

I am no expert on law, but Where someone normally just leaves a debt behind it is classed as default and subject to what can be classed as the 6 year rule.... This debt has increased, and it could be claimed with no intention to repay the bill, that I feel would possibly be a case for a fraud claim to be made and as the card has been used in Australia then the fraud ( if it is fraud) has been carried out on Australian soil and I would imagine subject to Australian law.

 

This is the difference between someone "Running away" from debt and someone who continues to increase the debt once here. I neither condemn or condone the OP's actions as I do not know enough about the full circumstances. But I would think very carefully about what consequences that could follow this course of action.

Edited March 17, 2012 by Guest31881

[Guest Shell15]

I do think that unfortunately folk in the UK are of the opinion that they are owed something, and in fact they may have a point. I for one am an Oz but have lived here for far too long - hence my return; however I too have taken the same attitude. The banks (not all ) are more than half owned by the taxpayer; too make a living over here and earn a few bucks is almost impossible. While we work hard to feed our families and struggle by, we have to sit by and watch MP's and the like scoffing hundreds of pounds of fine wine and champagne in a 'pub' that is 'subsidised by the tax payer'. That is just naming one of the many things we have to fork out our hard earned money on. For those who think its people like OP causing the UK debt, it may play a small part, but I would take a good long look at the greedy politicians and the like who have our cash readily available to spend spend spend whenever they feel like it!! and that they do!! The government has alot to answer for.. Its them who annoy me more, Rant over!

[Freckleface]

Well, yeah, but people are led by the media all the time. Bit naive to believe otherwise. Everyone's opinion is influenced by the information they use to form it, and no one (including you or I) has perfect info, so we form opinions based on what we think we know.....plenty of which is going to come from a subjective media

 

 

If you followed that line of thinking to its natural conclusion none of us would ever have to take responsibility for anything we did.

[pintpot]

Don't be so po-faced about it - I don't know you, but I don't need to know you to be 100% sure that some of the opinions you hold on some things are at least in part the product of biased/subjective/selective media reports

 

I'm not agreeing with or condoning the actions of people who run away from debt, not in the slightest (this should surely be clear from my posts on this sort of subject). I'm just highlighting that the UK media has been pretty stuffed with "greedy bankers" crud for years now, and this level of abuse and opprobrium (mostly IMO undeserved) is bound to affect the things people think they can morally justify themselves in trying to get away with

 

You only have to look at loads of the "should I get my lender's consent to let" threads for evidence of that; they are riven with people justifying why they don't have to bother, or why they don't see why they should do what they promised to do, because the other party to whom they made that promise is a bank and therefore a "baddie". It's pathetic. But very human

Edited March 17, 2012 by pintpot

[realitynotincluded]

Straight up.... because of the amount... the credit card companies will want the money back... you have a house.... nice collateral for them...... they will make you bankrunpt with or without you..... without a so much as a thankyou... either way you lose.... is a house worth losing over 40 grand...

Ok guys - might start a big debate here I'm sure !

 

Here's our situation

 

• We've been in oZ for 2 years with my wife and family of 3
  
• Expect to get PR in the next few months.
  
• Looks like we will be staying and not going back to the UK for at least 5/6 years (if at all) as my kids finish their education. ( I want to stay ... wife mixed atm)
  
• Since leaving we have been paying minimum payments to our Credit card Debts (GBP 30k)
  
• We've kept up with payments (just) but have added to the debt whilst over here by paying for School Fees whilst on a 457 for the 1st 2 years
  
• We now have 4 UK Cards with almost GBP 40k
  
• We own a house in England with about 60k GBP Equity and we don't want to sell and want to keep the house as an investment.
  

Going to be honest here

 

Would like to simply stop paying the debt as I understand it will be written off in 5 years and the card companies can't touch us over here.

 

Question is can they make us sell our house ? Bearing in mind the individual debt is quite small with each card co - eg < GBP 40k.

 

I know it's wrong / stealing etc etc but I have no concious to the global banking industry TBH.

 

Would love peoples views !!

 

Scot

[landv]

If you stop paying your credit cards whilst you still have your house in the UK, it's almost certain that the banks whom you own the money to will make you bankrupt in your absence. They can and they will.

Once you're made bankrupt then you will have no choice but to sell the house and will then have to pay your debt back, not to mention the damage that it will do to your credit history. Think about it.

 

 

In the meantime, pray every day that you'll get your PR.

[Guest guest17301]

I think its all too easy to judge debtors without understanding the reasons behind their situation. We live in a buy now pay later world. We had debt in the UK and we take our finances a lot more seriously here. Its too easy, banks throw credit at you...I keep my credit card balance low and the bank offers me credit increases all the time...I dont want it and I dont need it! Its about keeping it at a comfortable level and not being greedy. If you cant pay your bills then something has to give or you need to earn more to fund your lifestyle!

 

That said I think if knowing you have equity in a home that you plan to keep and debts you plan to bin off.....karmas gonna get ya! You will lose long term. Fair enough if you have nothing...but you dont, you cant keep the house as an insurance policy. If I were you I would sell the home, still have a sum of money (more than a lot of people) plus a clear conscience.

[jamjar]

I think people should stop trying to give the OP solutions with regard to how best pay of the debt - he has absolutely no intention of paying it back. He wants to walk away from it and keep the house.

 

From the information given so far, he has probably realised that he cant do this as the credit card companies will be able to get there money from the bankrupcy/forced sale of the house.

 

 

His decision now will probably be based 100% on if they will ever return to the UK, if not then from what he has gathered on here he will sell the house move the £60k to Oz and never pay the £40k. IF they want to go back, well then he is stuffed.

 

 

I dont agree at all with what he is doing and I suspect he wont come out smiling in the end as the thought of not being able to go back to the UK will be the thing that might stop him.