What happens if you are unable to make minimum payments on a Credit Card

[2008bangkok]

I have had a Credit Card for about13 years with 100k limit which for ages has always been maxed out.

I have never missed a payment but this month lost my job due to ill health so currently am unable to make the monthly minimum payments and given my current condition im not sure id find another job till my issue is fixed.

My question is what are my options and is it a criminal offence to not make these payments and if I left the country to go home to seek treatment with the intention of returning would i have a problem leaving or returning.

Thanks 

[proton]

$100k ? or baht

[2008bangkok]

1 minute ago, proton said:

$100k ? or baht

Baht 

[Crossy]

Task A is to contact the card provider and talk to them. The single biggest error people make is to ignore it and hope it will go away. Try to maintain a dialogue, even when out of the country.

 

If you can make any payment at all this should keep you in their (reasonably) good books.

 

EDIT Are you entitled to any severance? It can get quite large if you've been there for a long time (IIRC up to 10 month's salary tax free).

[KhunLA]

After you pay it off, and if you are still able to get a CC ...

 

... DON'T ... keeping it at max and paying the min. payment, you are failing Economics 101 miserably.

 

New rule for yourself ...  if you can't pay cash, you don't need it, nor can afford it.

[Crossy]

6 minutes ago, KhunLA said:

... DON'T ... keeping it at max and paying the min. payment, you are failing Economics 101 miserably.

 

Yeah, a 19-year-old me fell into that trap, it took me a long time to re-build my credit score (UK).

[2008bangkok]

6 minutes ago, Crossy said:

Task A is to contact the card provider and talk to them. The single biggest error people make is to ignore it and hope it will go away.

 

If you can make any payment at all this should keep you in their (reasonably) good books.

 

EDIT Are you entitled to any severance? It can get quite large if you've been there for a long time (IIRC up to 10 month's salary tax free).

Bit of a long story but basically it was for small company, i had a WP etc but after about 7 years they decided to shut the company down completely with zero discussions and then said you can continue to work for us on a digital domad type basis so had me over a barrell

Thus the obligation for full severance pay is no longer needed.

 

[blackcab]

36 minutes ago, 2008bangkok said:

Thus the obligation for full severance pay is no longer needed.

 

You are incorrect. The company would be liable to pay you severance pay even if a company director subsequently hired you to work on a freelance basis.

[timendres]

7 minutes ago, blackcab said:

You are incorrect. The company would be liable to pay you severance pay even if a company director subsequently hired you to work on a freelance basis.

With no work permit? I believe without that you have no access to labor laws.

[timendres]

@Crossy is absolutely correct: "Task A is to contact the card provider and talk to them."

 

No bank wants to absorb a credit card default. CCs, by definition, are "unsecured" debt, meaning the bank has no access to collateral, and the options for resolving the debt are all undesirable. Most often, if you are communicating with the bank about your situation, and offering reasonable alternatives that suggest you will ultimately pay the debt, the bank will want to work with you.

 

In the end, if you default, your credit score will be destroyed, and you are likely to be hounded by debt collectors (that acquired the debt from the bank for pennies on the dollar, or satang on the baht). But I do not believe that this can affect your immigration status. And it is not a criminal offense.

Edited December 23, 2022 by timendres

[tomazbodner]

1 hour ago, 2008bangkok said:

what are my options

First thing to do is contact your credit card company and let them know of situation. They are generally interested in getting the money back, so while they will suspend your card, they would likely come up with a repayment plan so you can return that in monthly installments. But without a job/income, that might be tough for you. During the time of repayment, there is also a fixed interest rate on the outstanding amount that you would need to agree to.

 

Every 6 months credit card company sends a letter to credit bureau, and for the months of suspension they will change status from normal (10) to something else. This will be an issue if you try to get a loan or another credit card in the future. But banks, after you have cleared debt with them, might resume your current card, so at least there's a way out.

 

But of course if you default even on a repayment plan, then bank would likely sell your debt to a collection company, which would be far less understanding.

[blackcab]

24 minutes ago, timendres said:

With no work permit? I believe without that you have no access to labor laws.

 

You do not need a work permit to access the Department of Labour Protection and Welfare. What you need to be able to do is prove you worked for an employer.

 

In terms of the DLPW, not having a work permit is seen as a deficit of the employer and not of the employee.

 

If not having a work permit is all it took for an employee not to be covered by labour law then employers would be incentivised not to assist in getting any work permits at all.

 

My apologies to the OP for sidetracking the discussion.