Advice with credit card and finances

helen01234

We currently owe alot on credit cards and are looking at options to pay them off.
We currently have 4 cards.

I dont think we could transfer balances as the balances are so high.
I was looking at writing to the companies to freeze the interest.

How does affect your credit rating and for how long?
How do I go about writing to them, is there a standard letter? or what do I need to include?

We can make payments however as we arent making over minimum payment it isnt denting them at all.

Any advice please?

Thanks
Helen

Any

helen01234 wrote: »

We currently owe alot on credit cards and are looking at options to pay them off.
We currently have 4 cards.

I dont think we could transfer balances as the balances are so high.
I was looking at writing to the companies to freeze the interest.

How does affect your credit rating and for how long?
How do I go about writing to them, is there a standard letter? or what do I need to include?

We can make payments however as we arent making over minimum payment it isnt denting them at all.

Any advice please?

Thanks
Helen

Why do you think they will just freeze interest? CC companies are here to make money. I think you would have to go bankrupt for them to freeze the interest.
Why don't you think you can BT them? Did you try to apply for another card? You might not BT them all, but at least some of them - that would mean that you will not be paying interest for some time on the ones you have transfered and be able to pay more then minimum payments on the ones that you were not able to BT.
I would ask whether the only way to freeze interest is to go bankrupt people on the Bankrupcy&how to live with it thread.
As for affecting your credit report - if you go bankrupt it will seriously affect you report for years.
How old are you, how much you earn and how much is on the cards at the moment? Have you ever missed a payment? I am sure someone will from answers to these question be able to tell us whether you have chance for another credit card to do BT.

helen01234

Any wrote: »

Why do you think they will just freeze interest? CC companies are here to make money. I think you would have to go bankrupt for them to freeze the interest.
Why don't you think you can BT them? Did you try to apply for another card? You might not BT them all, but at least some of them - that would mean that you will not be paying interest for some time on the ones you have transfered and be able to pay more then minimum payments on the ones that you were not able to BT.
I would ask whether the only way to freeze interest is to go bankrupt people on the Bankrupcy&how to live with it thread.
As for affecting your credit report - if you go bankrupt it will seriously affect you report for years.
How old are you, how much you earn and how much is on the cards at the moment? Have you ever missed a payment? I am sure someone will from answers to these question be able to tell us whether you have chance for another credit card to do BT.

Thanks sor your advice. I didnt expect that they would, infact Im not expecting it all- sorry if it I didnt word it well in my post.
I just wondered if it was a viable thing to look at with the possibility of maybe it working.
I will have a look rouns on other forum parts and do some more research
Thanks
Helen

CLAPTON

there is insufficient financial details to give any advice.. you would be advised to go over to the debt freewanabe board, read the stickies there and post up full details of income, spending and debts details (SOA).

Other than for a strictly limited period, creditors will not freeze interest until you stop paying... i.e. default... this will trash your credit rating for 6 years, may lead to CCJ, charge on property etc... but without the full details its not possible to give clear advice.

NickX

Any wrote: »

Why do you think they will just freeze interest? CC companies are here to make money. I think you would have to go bankrupt for them to freeze the interest.

Urm if you go bankrupt, the debt gets written off so there is no debt left to freeze the interest on.

However if the card company sees that you are having financial difficulties it is in their interests to freeze the interest and help you to avoid you going bankrupt and them having to write the debt off.

Usually they would have to have evidence of financial hardship including late payments, payments less than the minimum and a full Statement of Affairs. They are known then to freeze interest for a fixed period as a gesture to help you get back on your feet. Often this is a 12 month period but be aware that after the 12 months has passed they will expect you to return to full payments and this will affect your Credit Rating.

As others have suggested it is a good idea to post on the DFW (Debt Free Wannabee) Board where there are many others who have beaten their debts and will be able to give good advice.

Any

NickX wrote: »

Urm if you go bankrupt, the debt gets written off so there is no debt left to freeze the interest on.

However if the card company sees that you are having financial difficulties it is in their interests to freeze the interest and help you to avoid you going bankrupt and them having to write the debt off.

Usually they would have to have evidence of financial hardship including late payments, payments less than the minimum and a full Statement of Affairs. They are known then to freeze interest for a fixed period as a gesture to help you get back on your feet. Often this is a 12 month period but be aware that after the 12 months has passed they will expect you to return to full payments and this will affect your Credit Rating.

As others have suggested it is a good idea to post on the DFW (Debt Free Wannabee) Board where there are many others who have beaten their debts and will be able to give good advice.

Thanks NickX for your URM. I said "I think". I was trying to point out that they don't let you to run up a debt if you can get so easily out of this.

Helen,
I was over on Bankruptcy forum to have a look and many people there said that they went to Citizen Advise Bureaux to ask for help and one of the guys said that they put him in touch with agency to write the letters to freeze interest. However this person was unemployed at the time so couldn't make the payments at all.

I have seen many people posting their SOA on Debt Free Wannabees and loads and loads people posted their suggestion how to cut back on spending etc. I would post there as NickX suggested and only if everyone says that you need further help would I go into such a drastic measures as stop paying with a hope of having interest freezed.

Keep your head up girl. Once you decide to start doing something about your debts - that is the biggest step done!:T

NickX

Any wrote: »

Thanks NickX for your URM.

I was over on Bankruptcy forum to have a look and many people there said that they went to Citizen Advise Bureaux

No offence intended by saying "urm", it was just that your post read as though the OP would have to go bankrupt to get the interest frozen when this is not the case. It would actually write the debt off completely but it not really adviseable except under extreme circumstances.

Agree with CAB (Citizens Advice Bureau). They offer a free service, they will negotiate with your creditors in your behalf and have access to professional legal advice if required.