Any Advice? Very bad Credit Card debt...

[serfty]

Methinx it's more of a case of left hand/right hand and not knowing what each other is doing!

 

[Dave Noble]

Methinx it's more of a case of left hand/right hand and not knowing what each other is doing!

Or very cunning. If they know that the person is about to become bankrupt, then getting the person to pay off some outstanding debts before they have to join the creditors queue is a neat idea. They offer a carrot knowing that the bankruptcy will allow them to remove it, however they have reclaimed some of the debt

Dave

 

[skybolt_]

Well done throwing it away Gordon.

As usual, Amex are useless - imagine offering you more credit when the other ones are overdrawn. Doesnt sound like responsible lending practice to me.

I find it hard to believe.

 

[JohnK]

It is reality. In my experience the more you get into debt the more credit you are offered....

 

[oz_mark]

So, their response? Offer me more credit, in fact a greater level of spending capacity.... NO CREDIT LIMIT !!! One little catch - I'll need to get my other cards in order.....

While it is good you tore the offer up, it is a myth that there is No Limit on charge cards.

 

[Dave Noble]

While it is good you tore the offer up, it is a myth that there is No Limit on charge cards.

Indeed. As the description states... No PRESET spending limit

In some ways worse than having a credit limit since you may hit it without even knowing that you were going to...1st time you know is when card gets declined

Dave

 

[Evan]

I have never had my platinum charge card declined but i was limited to $1500 cash the other day when i wanted cash from the Amex exchange unless i wrote a personal cheque then it went upto $6000 limit. (per 30 days)

Yes Amex has a better cash rate than MC or Visa or my ATM card !!! and i can even give the proof as i had a cash MC and Amex and ATM transaction the same day last week.

(And probablyall are wondering why i needed so much cash in another country.... Rented and appartment and needed a deposit bank cheque 3.5k and could not wait the days it takes for TT)

E

 

[vilemerchant]

Today, I received a very interesting letter from AMEX.

To date, my AMEX Plat + Gold cards are well overdrawn, and I haven't made a payment on them for about 3 - 4 weeks. ( which must have come to their attention ).

So, today, I received a 'personal' invite, from The Director, to take up a Plat. Charge Card for
$600.00 ( $300.00 off the normal price )

This is incredible. What's the chance this offer would have disappeared, along with all your other cards the moment you paid down your outstanding accounts? It was a nice try, good job for seeing through it.

 

[Rick93]

Well, things are plodding along OK.
However, an interesting situation from AMEX has arisen.

Basically, both myself and my wife had AMEX cards. She had just one.

After all was said and done, she closed her account, at which time, there was a small credit balance.

She received the refund cheque.

However, recently, she received another cheque ( in her name - not mine ), for a small sum.

We can't really account for this.

So, the question is, if the account is closed, and AMEX sent her a cheque in her name, and she clears it, and spends the money, can AMEX come chasing her for it later? ( whether the sum is a dollar or $10K, a cheque is still a cheque that needs to be banked and cleared, and accounted for ?)

Any further thoughts on this.....

thanks,
regards,
GORDO

 

[Maca44]

Well, things are plodding along OK.
However, an interesting situation from AMEX has arisen.

Basically, both myself and my wife had AMEX cards. She had just one.

After all was said and done, she closed her account, at which time, there was a small credit balance.

She received the refund cheque.

However, recently, she received another cheque ( in her name - not mine ), for a small sum.

We can't really account for this.

So, the question is, if the account is closed, and AMEX sent her a cheque in her name, and she clears it, and spends the money, can AMEX come chasing her for it later? ( whether the sum is a dollar or $10K, a cheque is still a cheque that needs to be banked and cleared, and accounted for ?)

Any further thoughts on this.....

thanks,
regards,
GORDO

If the money they sent her does not belong to her, then don't bank it, just contact Amex and ask them to explain the situation. If she uses the money sent to her by Amex in error, then Amex can seek to recover those funds. It is essentially "stealing by mistake", the same as if you find a wallet on the ground with $1000 in it, and you don't hand it in to the Police, then this is stealing by finding. Its illegal.

 

[SOPOOR]

my suggestion,

contact amex, and to see if its supposed to be yours, and if in the chance its yours,

put it straight back into paying your debts!!!!

no holidays, no gifts, no presents...nothing

 

[Rick93]

I think it's a bit different to " finding a wallett on the street...".

It was mailed to her ( our ) address, fully in her name.

Sure, she could return it, if she ( we ) don't know how it came about....

but, then, it may be a 'refund' of some fees, or interest, or from annular card fee rebate etc.

It's not the actual amount that's in question, it's whether she can legally bank a legitimate cheque, sent to her, in her name, after the account has been closed, and she is no longer an AMEX customer.

I would have thought yes.

Whether or not AMEX ask for it back later or not is yet to be seen.

Further, I was thinking how CentreLink handle similar situations. They call it an 'overpayment', regardless of how funds were acquired by people not exactly entitled to it. They always allow a period of time to repay it back.

However, thanks for your impression, because that's what I was after... other people's impression of the situation.

regards,
GORDO

 

[rwatts]

I would certainly bank the cheque - as you point out the payment was definitely intended for your wife (mistakenly or not).

If you are sure it hasnt arisen through some action or (mis)representation on the part of you or your wife, I would not even query it with Amex but I would be prepared to promptly repay it if and when they tell you it was a mistake.

In the meantime I would be using it to reduce any debt incurring interest. It may be only a drop in the ocean but every bit helps.

Richard.

 

[Diesellife]

I would do the same too Bank it and get interest and give back if you need to.... its a win win situation

Outcome 1 -> you get the principle + interest
Outcome 2 -> you get the interest only

 

[simongr]

In the meantime I would be using it to reduce any debt incurring interest. It may be only a drop in the ocean but every bit helps.

Richard.

The problem is that if the amount is banked into an overdrawn account or banked into a bank account and then used to pay off debt - if Amex come calling for the amount to be returned then Gordon wont have the money to repay it.

However I would assume that Amex have sent the payment correctly and would bank it. The fact that you have closed the Amex account should be irrelevant - I have had plenty of refunds after the closure of various accounts.

On a side point I fundametally disagree with allowing repayments over time for overpayments. We do it with staff and it always annoys me - people should know what they are due to be paid and if overpaid should refund it immediately and not cry foul...

 

[Rick93]

I assume you are referring to CentreLink clients?

I would think, that CentreLink are well aware of the 'type' of clients they have on the books.... ones that are more than likely to spend everything they get, as soon as they get it !! ( Overpayments included )

But just to clarify the main point....

Any amount that my wife received back from AMEX, in her name, would be her business. Whether it's a dollar or a thousand, it's not mine, and never was.

The cheque, and clearded funds go to her... not me. So, this 'coupla bucks' isn't going to pay off any of my debts whatsoever. In fact, at the moment, I don't have any debts !! Everything I did owe, is now subject to a registered bankruptcy file. ( well, actually, I owe my mother a sum of money, but we'll work that one out over the next year or two )

So, I come back to two options:

1. Send the cheque back to AMEX, saying " I think you have made an error in sending this to me ( my wife ).
2. Bank the cheque ( her individual account, not mine ), use the cleared funds, but be prepared to refund it back to AMEX, should they come knocking.

I think I know which option to take.

I'll post back, should AMEX 'knock on the front door'.

regards,
GORDO

 

[oz_mark]

The problem is that if the amount is banked into an overdrawn account or banked into a bank account and then used to pay off debt - if Amex come calling for the amount to be returned then Gordon wont have the money to repay it.

However I would assume that Amex have sent the payment correctly and would bank it. The fact that you have closed the Amex account should be irrelevant - I have had plenty of refunds after the closure of various accounts.

On a side point I fundametally disagree with allowing repayments over time for overpayments. We do it with staff and it always annoys me - people should know what they are due to be paid and if overpaid should refund it immediately and not cry foul...

I've had various fee adjustments, interest adjustments etc after accounts had been closed, although normally the cheque arrives with an explanatory letter.

 

[Dave Noble]

my suggestion,

contact amex, and to see if its supposed to be yours, and if in the chance its yours,

put it straight back into paying your debts!!!!

no holidays, no gifts, no presents...nothing

if my understanding is correct, she is not the one in bankruptcy and not liable for his debts. The administrator will be dealing with payments of income from Gordo

Dave

 

[ArseneV]

Hi Gordon,

Sorry to hear of your problems. I hope you can get rid of them A.S.A.P!

I am no financial adviser, but I think some of these points could help you.

• Have bicycles available in your house. Don't take the car for 2 minute rides to the milk bar, make your kids ride to school or to friends houses on the weekends etc etc
• If possible just rely on one car. Check out some car sharing companies and see if they could fit into your lifestyle.
  GoGet CarShare - GoGet CarShare - Sydney and Melbourne CarSharing & Flexicar - Car Sharing Melbourne and Sydney Australia - Car Share by the Hour or Day
• Eat vegetarian - if possible, 6 times a week! Don't buy books for recipes, just go online. You can fulfil all your bodies needs by eating Veg, don't think you'll be missing out on anything (iron, protein). Just mix it up and buy different vegetables.
• DON"T buy coffee - Take a thermos to work or just use what work has avail.
• Don't buy your lunch when at work!. Make it the night before.
• Shop at ALDI for non-perishable goods.
• Cut down on alcohol (Not sure if you drink much but cut down anyway!)
• Don't buy Vitamins or Supplements - It's a load of c**p and they're expensive.
• See if you can cut down on electricity and water use!
• Keep a bucket in the shower and use that water to flush the toilet.
• Even better - Make everyone wash with a bucket. You can clean yourself thoroughly with 2 buckets of warm water - Millions of people around the world do it everyday, why can't we?
• Toilet training for the whole family - 'If it's yellow let it mellow, if it's brown flush it down.'
• Buy cheaper cuts of meat. We can't have fillets and breast meat all the time!
• If you're kids have mobiles, get rid of em'. Why does any child under 18 need a mobile? If it's an emergency i'm sure they can find a phone somewhere.

Hope you don't feel too bombarded. You've done a noble thing coming on here and admitting what's going on.
If you get annoyed at all the advice, i'm sorry. I still think you should regularly come back to this forum and let us know how you're doing so we can keep you in check and get you motivated to pay this debt off!

Good luck buddy!

 

[abc12345678]

IMHO, the water saving techniques listed above are not going to save too much $.

Water is no more than $2 per kilolitre from town supply.

Be more worried about paying $3.50 for 600ml Pump Water at Calex.