Silly question(s), but...

Devo

Do you have to be in more debt than you can afford in order to contact your creditors and ask for reduced payments/interest rate cuts etc

Does it harm your credit record e.g. will people will be able to see that you couldn't keep up and had to negotiate etc

Will your creditors look at your income etc and make their judgment based on that e.g. if you earn a decent wage, but spend quite a lot each month and want to reduce debt payments...will they let you

Sorry if they're really silly questions, but I've always wondered - not that I'm thinking of doing it

Xbigman

Yes you have to be in more debt than you can afford to pay to make reduced payments. As part of any reduction you need to send in details of your income and expenditure, which will show that you can afford the payments. If you had a short term problem IE 1 to 3 months, you might get a lower payment but you would be expected to make this up pretty quickly.

Yes it does seriously affect your credit rating.
Regards




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