Virgin Credit Card Debt - Struggling With Debts on Credit Cards

Are you struggling with your Virgin money credit card debt?

Debt can be very overwhelming and can cause a lot of financial pressure, knowing what to do about it can be a very relieving feeling.

We can help guide you in the right direction to pay off your debts, since dealing with money trouble is never easy.

Continue reading this article to get advice on your debt.

Interested In Finding Out More About The Debt Solutions Available?

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Table of Content

1 What will happen if I go into debt with my Virgin credit card?
- 1.1 Proof of debt
2 How much do I need to pay a month?
- 2.1 Can I pay more than once a month?
3 How can I make a payment?
4 How can I budget effectively?
5 What is persistent debt?
- 5.1 What does persistent debt mean for me?
6 What will happen if I do not pay?
- 6.1 Can I be taken to court over this?
7 What if I cannot afford to increase my monthly payments?
8 How do I find the best debt solution for me?
9 Summary
10 Credit Card Debt Help Information
11 Other Debt Solutions

What will happen if I go into debt with my Virgin credit card?

If you have a bank account with Virgin and you have not been repaying your credit card balance every month, you will eventually find yourself in debt.

It is important to make at least the contractual minimum payments each month when you are repaying the debt to avoid your credit rating dropping massively and affecting your future credit score.

You should always keep in contact with Virgin when you have got a debt with them as they could believe that you are not going to make your payments and they might add on interest or additional fees and charges.

Proof of debt

You should always request proof of debt when dealing with Virgin credit card debt.

It has been reported, although very rare, that some credit card companies have appointed a debt onto the wrong person or the wrong price.

If the company can not or does not give you the proof of debt to show that the payment is definitely required for you to pay and the amount is correct, then you are not liable to pay at all.

How much do I need to pay a month?

You should receive your statement monthly with a figure to show your overall balance to pay for the month.

You do not need to pay the outstanding balance, however, you should pay at least the minimum payment.

The minimum payment will usually work out to be from around 1% to 5% of the overall amount.

If your balance is under £5, you must pay the whole amount.

Can I pay more than once a month?

It is definitely acceptable to pay more than once a month, as long as this equates to the contractual minimum payment.

We would recommend paying more than the minimum each month before your next statement arrives as this would get you out of debt quicker and your credit score could improve.

How can I make a payment?

To make a payment to Virgin, you have the option of different methods, these consist of:

Online banking
Telephone
Standing order
Direct debit

You should give up to 10 days before your next statement is due to pay for your credit card so that it is definitely received by this time and the payment will not be classed as late.

Each payment method has a different wait time, usually around 5 working days, however, we would always advise you to give a little extra space incase this does not go through in time.

How can I budget effectively?

Budgeting effectively can help you out a lot when dealing with debt, Virgin offers an online budget planner to get you back on track.

Adding up your monthly bills and other financial commitments will help you to work out your budget, this will give you a better idea of what you can and can’t afford.

Taking the first step to repaying your debts is never easy but once you’re into the routine of budgeting around the debt repayment it will become easier.

This will stop you from falling into the trap of having a persistent debt.

What is persistent debt?

A persistent debt is where the customer pays more than they originally paid from their credit card balance in interest, fees, and charges.

This is because the customer is making the minimum payment each month so this means only a very small amount covers the actual debt balance.

The minimum payments only cover the interest rate, the fees, and extra charges, customers affected by persistent debt have to carry the debt for a longer period of time.

What does persistent debt mean for me?

If Virgin believes your account is in persistent debt they will write to you asking if you afford the increased monthly payments.

This is so the debt gets paid a lot faster and you don’t end up paying more in interest.

Virgin also has an online interest calculator if you wanted to find out how much interest you would be paying or how much quicker you could get rid of the balance.

Did you know that you could write off 85% of your debts?

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What will happen if I do not pay?

If you are struggling to repay your credit card, you are likely to go into arrears.

When you have been notified that you are in credit card debt, you should attempt to pay this off as soon as possible as the lenders will only get more demanding the longer you take, meaning that you are likely to be filled with stress.

Being in debt and missing payments will cause you some harm. You should expect to see your credit rating plummet as it is tracked on your credit file.

Can I be taken to court over this?

The type of debt you are in will determine whether court action needs to be taken, however, you should be glad to hear that it is not common for credit card companies to take legal action.

Court action is most commonly taken for debts that are involved in:

Government debts
Criminal fines

Be aware that although it is not common, there is still a risk, therefore, you should never rule this out and you should always try to pay your credit card balance on time.

What if I cannot afford to increase my monthly payments?

After Virgin has written to you and you are still in persistent debt after 18 months your account will be classed as extended persistent debt.

Before this happens Virgin will send you a letter/email explaining why you should increase your monthly payments and the benefits of it.

Virgin aims to help you out as much as they can to get you out of persistent debt and they may even end up suspending or canceling the card.

This may mean that it affects your credit score and your ability to get credit anywhere else, however, that could be a blessing in disguise and help you out in the long run.

If you still believe that you cannot afford the increased payments they encourage you to get in touch and express your concerns over the phone: 0800 678 1636.

How do I find the best debt solution for me?

The best thing to do is evaluate your financial situation and see how much you can afford to put away to pay the debt off.

A debt management plan is a route that most people go down because it is easy and they are affordable monthly payments to get the debt paid off.

Paying off debt is never easy and you may have to make some sacrifices for a little while such as memberships, morning coffee runs, and anything else that may not be a necessity at this time.

If you have savings even if it’s only a small amount it could still help out and potentially get the debt paid off quicker.