credit card debts

joanne2008

Hi,

I am finally taking my debt in hand and sending a letter and statement of affairs to my creditors asking them to waver the interest i have worked out a budget with each credit card which remains the minimum payment (i am currently paying around £10 off once the interest is applied each month and i am very close to my credit limit) I am in £10000 worth of debt on just credit cards.
The letter and statement of affairs list i have used if from the CAB website.
I am sending the letters by recorded delivery.
Am i doing this right?

Jo

beanielou

I think you seem to be doing it right joanne.
Have you worked out your payments on a pro rata basis depending on what you owe each creditor?
ie the creditors with rthe highest balance get the biggest slice of the pie IYSWIM.

joanne2008

yes the biggest c c debt im paying the highest monthly amount, i will still be paying the minimum payment but i have been told by someone else that they will not except my letter or cut the interest if i am still paying the minimum payment each month (i can afford the minimum payment) as they will not get anything out of it but after the interest is added on it only takes off around £10 of the debt i am nearing my credit limit now. Feels like im not getting anywhere.
Do you think they would help me or not?

GeorgeUK

You are managing to pay the minimum payments for now, when was the last time you had a credit check or applied for credit?

Have you posted up a statement of affairs?
http://www.makesenseofcards.com/soacalc.html

joanne2008

Here it is :-

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 1
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 300
Partners monthly income after tax....... 0
Benefits................................ 1030
Other income............................ 165
Total monthly income.................... 1495

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments........... 0
Rent.................................... 595
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 107
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 30
Mobile phone............................ 10
TV Licence.............................. 11.5
Satellite/Cable TV...................... 11
Internet Services....................... 10
Groceries etc. ......................... 300
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 21
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 11
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1166.5


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
natwest credit card............2752......75........0
natwest overdraf...............1750......0.........0
capital one ...................1750......60........0
tax credit overpaymen..........957.84....79.82.....0
tesco credit card..............1000.17...30........0
mbna...........................2752.22...65........0
Total unsecured debts..........10962.23..309.82....-


Monthly Budget Summary
Total monthly income.................... 1,495
Expenses (including HP & secured debts). 1,166.5
Available for debt repayments........... 328.5
Monthly UNsecured debt repayments....... 309.82
Amount left after debt repayments....... 18.68

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -10,962.23
Net Assets.............................. -10,962.23

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission.

beanielou

I would think it will be very unlikely or actally it wont happen that they will freeze the interest if you are paying the minimum payment.Even if you were paying less than min payment they dont have to freeze the interest.

joanne2008

capital one monthly rates- 18.820%
MBNA monthly rates- 2.0751%
Natwest monthly rates-2.075%
Tesco monthly rates-1.313%

worried_jim

Jo, if you have any problems or need further advice I would recommend Payplan, they have turned my life around. Well done for getting this far and good luck ! Jim.

http://www.payplan.com/

beanielou

I think your biggest problem TBH is that your rent is nearly half of your income.
Is there any way you could move somewhere cheaper at all?
Sorry to be so blunt.

hypno06

Your SOA shows that, on paper at least, you are able to afford the minimums, so........the key is to spend a bit less, and earn a bit more. Whatever "extra" you have, either by cutting back or earning more can be thrown at one of the debts.

Put the debts in the snowball calculator - www.whatsthecost.com and put in your current payments - this will give you a debt free date if you leave things as they are.

Then head over to the "make £10 a day challenge" and the "up your income" board on MSE - pinch some of the ideas there. Even if you only make £5 extra a day, that is £150 extra each month you are making, and if you make the full £10 a day, that is £300 a month extra......and it is entirely do-able.

Now, go back to the snowball calculator, and change your monthly payment available by £150 or £300 and see how much difference that makes to your debt free date.........

The more you can see your debt reducing and your debt free date being brought forward, the more motivating it is for you to go and find another £10 to throw at the debt.

caramia1812

Hi Joanne
You say three adults and one child in the house. Is the income shown above the total for ALL three adults or just yours? Also, if you are receving that much in benefits surely you get help with the rent or is that included in the benefit?