PPI on Credit Cards vrs payment plan

GhostHunter_3

Hi
Sorry if this is the wrong place.

Hoping someone can help here as I am baffled with the whole idea!

I have 4 Credit Cards, and am struggling and falling behind with repayments and now getting calls from card companies several times a week sometimes twice a day! The hassling / harrassment is depressing me.

I have been on Incapacity Benefit since last November due to a progressive back condition (AS) which I had diagnosed many years ago (before I even thought of a Credit Card).

I was previously Self Employed and paying my own National Insurance contributions by Direct Debit.

I have been living on my Incapacity Benefit and Working Tax Credits (my husband remains Self Employed so we are still entitled to WTC) since November last year. I have been paying off the minimum payments on all 4 cards using savings I had put away for a rainy day.

However all those savings are now 2 months depleated and as of last month and I am falling into arears with all 4 credit cards (not to mention other 'loans) and struggling to keep up The constant daily phone calls (sometimes twice a day from each company) are getting me down. I want to do my best to get out of this negative situation so I have been advised of my options which are:

1 Take out a Debt Management Plan direct with the Credit Card companies. I have the income & expenditure forms being sent to me from each credit card company.

I looked into a DMP with CCCS but their only reccomendations were bankruptsy or low start repayment plan that would make my debt bigger and credit score worse in the long run as I couldnt improve my finances in such a short time.

2 I have also been advised that I have Payment Protection Insurance on each card. Meaning I can submit a claim. Again the forms are being sent to me after I contacted each PPI company.

I am worried if I go onto a Debt Management / repayment plan I will end up in more debt and have an even worse credit score for many years to come

Secondly I have just realised that I most likely do NOT qualify for the PPI due to my condition being pre-existing AND being self employed when I took on the credit card/s and PPI. Thats what I was about to do back last year was see if I could get my payments back then I was signed off sick, which became long term in January (review is in November this year).

With reguard to repayment plans I have virtually no spare money to pay off 1 card at a time let alone 4 looking at the Income & Expenditure sheets and thats budgeting back to the basic necessities!

I am very confused, concerned and dont know what to do. If anyone has any advice or knows where I can find it or has any experience in this matters please can they share it if they dont mind? If you dont want it board-casted then feel free to PM or email me.

Thanks in advance. :eek: