can't meet this months minimum - made redundant 2 months ago

musicmate

What is the best thing to do? Should I call the 2 credit card providers and if so what are they likely to do/say? I have always paid my repayments on time, but my redundancy has run out, and I can barely make my mortgage. A few jobs are on the radar (just) but I would be looking at skipping at least 2 repayments on the credit cards.

Any advice welcome.

balmk

Hi

It is always best to discuss any financial difficulties with your creditors - it is when you don't communicate with them that things tend to get out of hand.

Give them a call and let them know your current situation, and be prepared to discuss a payment arrangement/token payment plan. Creditors are typically extremely receptive (though there are always exceptions to the rule) when customers are forthcoming.

Hope it all goes OK for you on the job front.

normanmark

Call them and explain the situation.

Moggles_2

balmk wrote: »

Be prepared to discuss a payment arrangement/token payment plan.

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 years after you're back in employment,

While you're meeting the minimum payments (usually 2-3% of the balance), your credit rating remains unaffected. Could you borrow this money from family or sell stuff on Ebay, perhaps?

Have you tried asking each of your two cc providers to lower the interest rate? (You can do this over the phone.) You may be able to reduce your costs very considerably. For details, see Martin's *Credit Card Shuffle* article

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

Fingers crossed you land a job soon.

Very best
M

musicmate

Thanks for the advice people. I called them up and they said that there is nothing they can do until I actually fall behind on the payments? That said they were grateful for me updating them. They gave me a couple of helplines to call as well (such as citizens advice)

lisyloo

I would say the same thing as Moggles.

If you make min payments then your credit record stays fine.
This is really important as this history lasts for up to 6 years.

Can you borrow from family?
Can you ebay or do a boot sale?
I've sold DVDs on ebay for over a tenner before and you'll get money pretty quickly although obviously the price varies depending on how popular they are.
I always search for completed items first to see if they are worth selling.
Do you have any friends/family who would pay you to do odd jobs?
We are busy people and I'd gladly pay someone to clean/iron/wash the car/clean the patio etc.
You don't have to beg, if they have money, but little time then you'll be doing them a favour, believe me.

It suprises me that I can't find anywhere to get my car handwashed or my elderly parents cannot easily find a cleaner or for someone to pick up their shopping/washing.
Are there opportunities you might be missing?
I realise that cleaning/ironing or washing cars is not a great job, but if it keeps your credit record clean for 6 years, then it's really worthwhile.

What about going to the local old people home and seeing if anyone needs any odd jobs done or any shopping picked up (be careful on teh insurance front).
My old folks get loads of benefits but it seems hard to find people to do odd jobs.
If you went to a home of 60 flats and only picked up 5 lots of shopping then you can clearly have your costs split 5 ways.

Rose123

Moggles wrote: »

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 years after you're back in employment,

While you're meeting the minimum payments (usually 2-3% of the balance), your credit rating remains unaffected. Could you borrow this money from family or sell stuff on Ebay, perhaps?

Have you tried asking each of your two cc providers to lower the interest rate? (You can do this over the phone.) You may be able to reduce your costs very considerably. For details, see Martin's *Credit Card Shuffle* article

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

Fingers crossed you land a job soon.

Very best
M

So if you have an arrangement to pay on a credit agreement, does thing not fall off your credit file after 36 months? Is it not less effective the longer it is on your credit file?

lisyloo

does thing not fall off your credit file after 36 months?

I have 48 payments shown on some credit reports.
Couldn 't tell you which one without looking.

Is it not less effective the longer it is on your credit file?

Possibly.
But don't forget that there is a credit crunch on and even prople with no blemishes are being turned down.

never-in-doubt

Rose123 wrote: »

So if you have an arrangement to pay on a credit agreement, does thing not fall off your credit file after 36 months? Is it not less effective the longer it is on your credit file?

Not always, they should but Equifax tend to keep it longer and CC keep it for 6yrs. If you want it removing after 3 then you can ask for it to be removed as 3yrs is the agreed standard, like 6yrs is for defaults.

Innocent_Guy

If there is anyway to scrap the money together I suggest that you do it.

If not call your creditor the day after your payment due date and advise them of the issue.

As moggles suggests you want to avoid "Arrangment to Pay" at all costs

Best of luck

dfh

Some card providers such as halifax have reduced the minimum payments to 1%.I would suggest you write a letter explaining your situation and keep a copy so you can prove later you tried to sort out things from the onset.
How about a car boot or a garage sale.Or trying to cut down on things like sky,etc.