malteser: if i decided to not pay it and see the consequences through? so what would the change of events be if i just said 'i can't afford to pay this credit card off ' would they just try to take me to court? and if so what are the possible outcomes?

Your credit record with the credit references agencies will now be noted about the default, so getting any loans/credit at a decent rate, could prove difficult. If you have a mortgage that is on fixed term, when it comes time to renew, you will have difficulty in shopping around for a decent rate.

The credit card company (CCC) will try to come to an arrangement with you to pay the outstanding amount, but if you do not respond, they could threaten court action to obtain a CCJ. If you did not defend the action, the CCJ would be granted by default. The CCC would then look to enforce the CCJ to obtain the sum owed. This could include obtaining a warrant to seize your goods, a charging against property, attachment to earnings, bankruptcy. You should always defend any court action as the CCC would need to provide full information to the court of your original signed Credit Card Agreement, plus all other information on the account they hold. The court could also look at what you can reasonably afford to repay, if you are in attendence to provide this information.

So what you need to do if you are unable to make repayments, is get some debt advice. You will be required to list your income and expendure in full, so it can be worked out what you can reasonably afford to pay. The following companies can help with this.

http://www.payplan.com/

http://www.cccs.co.uk/

http://www.nationaldebtline.co.uk/

http://www.citizensadvice.org.uk/

In addition you could look into whether the CCC holds your original signed Credit Card Agreement (CCA) and whether such an agreement contains all the relevant ingredients to make it enforceable. If the agreement was arranged prior to April 2007 and was not arranged by internet, then there is a possibility it is unenforceable. If it is proved to be unenforceable, the CCC would have difficulty in court if you defended any action. If the CCC is already aware that they do not hold your original signed CCA, they may opt to sell your debt on to a debt collection agency (dca), rather than take any action themselves. If they do this they must send you a letter of assignment to confirm who now owns the debt. Most CCC's have there own dca's, so you may receive correspondence in a different name and not an assignment letter.

If you want to request a copy of your CCA, you can do this under the Consumer Credit Act 1974, paying a £1. You have to send the CCC a suitable letter to request the CCA. There are example letters on this site in the debt forum pages. The CCC would have 14 days to send you the CCA. Often they will only send you a copy of the CCA that applied at the time and not your original agreement, so you are left guessing as to whether they have your original form.

So in summary get some debt advice and also if relevant look into whether your agreement can be enforced.

Huckster

Briefly - If you don't pay or get in touch with the credit card company to come to a satisfactory arrangement, they will eventually pass the debt onto debt collectors. This could be the card issuers own internal department or it could be assigned to some other external debt collection agency. You will receive letters and numerous phonecalls threatening doorstep collections, bailiffs or court action reminding you of the consequences.

If you still refuse to pay or come to a mutual agreement, they would very likely apply to the County Court for a judgement against you (CCJ). This can require you to pay the whole entire debt at once if you have the money, or to pay it by instalments if you cannot afford based on your financial means.

Before the case goes to Court, you would be sent the appropriate forms to complete and return giving details of your income & expenditure, so the Court can determine whether to order that you pay the full amount immediately or by instalments, or if they apply an attatchment of earnings order to take it direct from your employment.

If the CCJ is awarded, it stays on your credit record for 6 years so you would be unlikely to get a loan, another card or a mortgage during that period.

I have just recieved a default notice for the overdue amount on my credit card and long story short, would like to know what would actually happen if i decided to not pay it and see the consequences through?

I was on a fixed plan to pay off £30 a month but missed a payment in august. I cannot afford to pay the default and would like to just be rid of the whole thing. i already know my credit rating is rubbish and and not in a position to buy a house or car etc anyway.

so what would the change of events be if i just said 'i can't afford to pay this credit card off '
would they just try to take me to court? and if so what are the possible outcomes?