credit file

tesss111

I have my house up for sale to clear my credit card debts(9k in total). I am struggling. As i dont know how long my house will take to sell(how long is a piece of string!) I am going to have to approach my credit card companies for reduce payments. I appreciate this will show as reduced payments on my credit file but how will it affect me in the future.Once I have satisfied my debts I will be looking to obtain another smaller mortgage. Will the cc comps accept reduced payments will they default me on my credit file??...
I have thought about getting a secured loan to clear the debt but everyone has told me this is not a good idea...any advice will help
thanks

GeorgeUK

Have you posted up a statement of affairs (SOA)?
We may be able to save you some money or help you cut back so that this may not be needed.
http://www.makesenseofcards.com/soacalc.html

What you are suggesting is the equivalent of a DMP. People who are on or have been on a DMP can get a remortgage but it is usually more expensive - at least until their credit score recovers.

Have you looked at the possibility of 0% cards or transferring your current balances around to make it cheaper?

tesss111

unfortunately I am 3 months behind with my credit cards so wont be able to get a 0% credit card bal transfer. I applied for a loan but was refused. Keep toying with the idea of secured loan but when I sell my house I will probably end up paying twice as much back. Also I would be swapping unsecured debt onto secured debt. Just concerned I will receive a default on my credit file dont want this as may require credit in future...

GeorgeUK

Post up a SOA with the card APR's and we'll see if there is something that can be done. If it is just a short term problem, you may be able to switch the mortgage to interest only or even ask for a payment holiday. Hopefully this is just a bump in the road.

tesss111

I"m already on an interest only mortgage and the highest apr cc is 29.9% (went up to this amount after 0% APR finished). Been declined for cc and loan. I have no adverse on credit file apart from the last 3 months missed payments just cant seem to make my finances meet. Really concerned at high APR cc and fees added. Plenty of equity in house but also refused re-mortg as already at max re amount borrowed for mortg.
Once the house sold I will be able to clear debt but its going to take time to sell house in this curren:o t market.

GeorgeUK

Thats a pretty nasty interest rate.
Have you had a look at Credit Unions? They do offer pretty decent rate loans and this may be an option if we can't find any other savings for you.
http://www.abcul.org/page/about/intro.cfm

We normally don't advise consolidating but interest rates like that can hit you pretty hard.
I'll pop back tomorrow and see if there's anything else i can suggest.

tesss111

Thank you
I appreciate it ....sometimes its just nice to discuss your problems and listen to someone elses view points and ideas...feeling better already...hmm till I remind myself my cc probs!
good night everyone!