Help please - cant sustain minimum CC repayments

Crisp_£_note

Hi

I have been finding it harder and harder to keep up the minimum repayments on my 4 Credit Cards, all of which I cut up over a year ago when I realised I was in debt to concentrate on clearing them!

This month I just cannot repay them at all. I recently missed the deadline day to send them the money by bank transfer (should have been Monday) as I would be left without enough money in my bank account to pay more priority bills.

I am wanting to write to my credidit card companies being honest and explain this and include a copy of my income and expenditure, showing I rely on benefits and ask if they can help me in any way. I dont want to go to court, its not that I wont pay just I cant afford to! The worst thing is none of the spending on these cards were on luxury shopping sprees - just to keep the roof over our heads in the past!

I dont know where to start! Can anyone help please?

Many thanks

Jesthar

Hey Crisp

OK, first things first - take a deep breath and relax a little, as the people here are famous for their ability to help insituations like this.

Next, put the kettle on and make yourself nice cuppa of your choice. Whilst the kettle is boiling, arm yourself with as much of your financial paperwork as you can find, then head over to http://www.makesenseofcards.com/soacalc.html and do yourself a fully up to date Statement of Affairs. If you choose the Format results for MSE option, you can copy and paste the results straight into a new post in this thread. That way we have a full idea of your situation and can give you advice accordingly.

*hugs*

~Jes

GeorgeUK

Are you paying interest on these cards?
Have you tried to get some 0% ones?
Are there any problems on your credit file? Late payments, CCJ...

From your SOA, should you have enough to make the minimum payments or not?

Crisp_£_note

Hi and thanks for the replies so far.

I have an up to date SOA, I have already posted it not so long ago but will repost again soon as I find the relavant paperwork.

Recently tried the CCCS who couldn't really help, only advised I paid £1 as token payment but I cant see how that will actually help, just put me deeper in debt?!

I don't have any CCJ's or other court judgements. My credit file I assume is really poor as I have not been good with my money in the past and my hubby still isnt very good at paying on time.

Therefore I cannot get another CC as not only (in my opinion) is it a bad idea but nobody would accept me, even if it would help short term!

If there is a template letter somewhere that I can use to send to credit cards to let them know whats going on my end even for the short term as I try to sort out the bigger picture I would be greatful if someone could post a link or direct me to it please.

Many thanks.

DevonGirl

Hey Crisp

I know exactly the feeling - I got to this stage very recently when, after all DDs / SOs had left my account I had the princely sum of £80 left for food, petrol, clothes and everything not paid monthly! Something had to give!

I would point you in the direction of the websites of the free debt charities such as http://www.nationaldebtline.co.uk/ (has loads of free advice about how to draw up your current income and expenditure, write to your creditors etc - absolutely invaluable), http://www.citizensadvice.org.uk/ (similar) and also http://www.payplan.com/ and http://www.cccs.co.uk/ who both have online help and free helplines.

For me, I decided upon a CCCS DMP, but this suited my personal circumstances - and may not suit you at all, so have a browse at all the sites and pick the best advice! (Not trying to promote CCCS or anything).

You sort of have to look at things the opposite way around - rather than paying creditors and leaving yourself with nothing to live on, you work out a realistic budget that allows for all reasonable outgoings and then pay your creditors with what is left.

Plus the guys on here will look at your SOA and give great advice, so maybe give that a go too.

Best of luck:D
DG

GeorgeUK

Have a look at the nationaldebtline website - there are some letters on there that would help.

I'll pop back once i'm at home.

DevonGirl

Just saw your reply. National Debtline has loads of these template letters. I can't post the link though as the advice differs depending upon whether you live in England and Wales or Scotland.
DG

Crisp_£_note

Hi

Thanks again for the advice so far. I will take a look at those links nd hopefully make a start, and I am in England by the way.

Many thanks

virginiamarie

Crisp_£_note wrote: »

Hi

Thanks again for the advice so far. I will take a look at those links nd hopefully make a start, and I am in England by the way.

Many thanks

Hi there, I wanted to tell you the path I have taken as I am in a similar situation to you. I am unable to make even the minimum payments to various credit cards and catalogues and was referred to Kensington Finance. The sheer thought of using financial advisor was intimidating to me but these guys are amazing.

I spoke to my assigned advisor (you always talk to the same person), he talked through my approx debt, broken down card by card, by outgoings such as travel and living expenses, my income and he asked me what I thought I could afford to throw at my debts.

They charge £35 a month, but they do freeze all interest on your debt, so usually this saving will far exceed the fee. We personally came up with an amount of £150 a month to clear a 2K debt in a year, everyones will differ however.

As soon as you speak to them you no longer have to liase with the companies you owe money to, they will do all of that for you. By the end of it your credit rating with be wiped clean and start from scratch again, so you will be eligible for loans etc, although of course I would'nt advise it!

Good luck x

Jesthar

Just to clarify the post directly above, the debt charites other people have posted links provide exactly the same services, but for free!

SouthCoast

virginiamarie wrote: »

Hi there, I wanted to tell you the path I have taken as I am in a similar situation to you. I am unable to make even the minimum payments to various credit cards and catalogues and was referred to Kensington Finance. The sheer thought of using financial advisor was intimidating to me but these guys are amazing.

I spoke to my assigned advisor (you always talk to the same person), he talked through my approx debt, broken down card by card, by outgoings such as travel and living expenses, my income and he asked me what I thought I could afford to throw at my debts.

They charge £35 a month, but they do freeze all interest on your debt, so usually this saving will far exceed the fee. We personally came up with an amount of £150 a month to clear a 2K debt in a year, everyones will differ however.

As soon as you speak to them you no longer have to liase with the companies you owe money to, they will do all of that for you. By the end of it your credit rating with be wiped clean and start from scratch again, so you will be eligible for loans etc, although of course I would'nt advise it!

Good luck x

Hmmmmmmmmmmm.

A first time poster advertising a fee paying company.

Use the free debt charities.