Can't make payments

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The last month I've had to sign on to Jobseekers (after being self employed for 8 years) It's the first time I've missed my CC payment (in 4/5 years) and only now I've realised I'm not going to be able to pay this months either. I had planned to sell some stuff and then pay the two months together but after being strung along by someone that's fallen through aswell now. I know I should just have phoned my CC company but I was hoping to just pay it off a little later. (I've already incurred the £24 charges, about to be x2 I guess) I'm over the credit limit now due to interest (29.9% card, lovely) just to make things worse. I can't see me being able to make any significant payments unless I get work very soon. Any tips before I call them, anything i should know or be aware of? [edit: the limit is £3k btw and I'm about £40 over at the moment] Any help or guidance would be appreciated.

Comments

  • Innocent_Guy
    Innocent_Guy Posts: 5,369 Forumite
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    Hi Jools,

    If you have anyway of getting the min payment I suggest that you do! Failing that you need to call the CCC however they may mark your credit file with "Arrangment to pay" which will cause serious complications on getting credit for the next few years.
    Bank Accounts - Barlcays Premier[/B] - £1000 o/d, HSBC - £200 o/d- First Direct - £500
    Credit Cards - Barclaycard £2000 - Silver Card £1300 - Flybe £7500 - HSBC £1000 - First Direct £2500 First Direct Gold £3000
    6 credit accounts closed in 2010!

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  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
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    Yes, I would avoid this route, if possible. It will be marked as "arrangement to pay" on your credit file and that would affect your ability to get credit for 6 years. While you're meeting the minimum payments, your credit rating remains unaffected.

    It's a pity you've only just posted. Had you tried asking your cc provider to lower that 29.9% APR rate (you can do this over the phone.), you could have reduced your costs. For details, see Martin's *Credit Card Shuffle* article.

    http://www.moneysavingexpert.com/car...-card-interest

    Your post raises some other issues and you may want to post again on the *Debt-Free Wannabe* board. You'll get lots of advice and support there from users who have faced similar situations ;)

    http://forums.moneysavingexpert.com/forumdisplay.html?f=76
    People who don't know their rights, don't actually have those rights.
  • Jools07
    Jools07 Posts: 21 Forumite
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    I had asked that the 29.9% be lowered in the past. Got absolutely no joy from CS, they just threatened to pass my account onto collections. Who are the CCC? Thanks for the replies, unfortunately I have no real way of making the payments in time. The last one was due nearly a month ago now and the next is due at the end of next week. I could pay the first one towards the middle of the week but I suspect it's already too late not to effect my CR. I'm not really that devastated about my CR to be fair. I could do with not being able to get any!
  • Moggles_2
    Moggles_2 Posts: 6,097 Forumite
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    Jools07 wrote: »
    I could pay the first one towards the middle of the week, but I suspect it's already too late not to affect my CR.

    Not if you have no other late payments over some 4-5 years, but it's your choice really.
    I'm not really that devastated about my CR to be fair. I could do with not being able to get any!
    Just as long as you're aware of the implications. So many post here blaming the card company for not warning them of the consequences. Six years is a long time to manage without credit facilities.

    Before you do anything, I would post again on the *Debt-Free Wannabe* board. You'll get lots of advice and support there from users who have faced similar situations

    You can also get free advice from your local Citizens Advice Bureau.

    Very best
    M
    People who don't know their rights, don't actually have those rights.
  • Jools07
    Jools07 Posts: 21 Forumite
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    Thanks, I'll make a post there aswell then. It is the first time I've missed a payment on anything but the second won't be long after which is the problem :(
  • lewpster
    lewpster Posts: 1,665 Forumite
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    No advice but wanted to wish you all the best for finding work soon : )
  • Jools07
    Jools07 Posts: 21 Forumite
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    I phoned them today (my CC company) and they offered to put me into a repayment plan for £30 p/month but that will only be accepted after I've made two payments. So in the mean time I'll wrack up a couple more late payment and over the CL charges.

    And obviously that affects my CR with the repayment plan showing up.

    After I've made the two payments the interest goes to 0% for 6 months and then 1 or 2% per annum after that.

    Is this a good solution? Or should I contact a third party?

    Thanks for any advice.
  • SwissLe
    SwissLe Posts: 265 Forumite
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    Why can't the repayment plan be put into effect now? With arrangement to pay marked on the file you are unlikely to get any decent credit for a number of years, so the charges are the only thing to contest now.
    I'm going for my QuidCo £million!
    Total So Far: £9923.58
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