Unemployment and credit cards

LadyCoconut

Hello everyone,

I was made redundant about 3 months ago and have about £2800 on my card. I cut the card about 4 months ago as it was a temporary measure to some fairly expensive dental work.

Anyway, I have some money in my account and have set that the minimum amount to be paid off each month but then of course the minimum is about 40 quid which is then there is also the 30 quid interest so my payments are not making any difference. Oh and no I didn't have payment protection. Lesson learned.

What are the options available to someone in unemployment?
Am I just stuck with this until I get another job and can pay it off?

Thanks.

lukemed1

write to them explaining your current circumstances, they'll probably stop the interest until your back on your feet, also try the cccs, consumer credit counselling service, look on the debt free wannabee's section,

good luck

Luke

LadyCoconut

Thanks for that Luke.

I rang the counseling service and not much that can be done unless I'm more or less living underneath a bridge. I'm not THAT badly off yet but just wanted to be sure that there was nothing else I could do.

thanks.

Moggles_2

lukemed1 wrote: »

Write to them explaining your current circumstances, they'll probably stop the interest until your back on your feet ...

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 long after you're back in work. While you're meeting the minimum payments, your credit rating remains unaffected.

What are the options available to someone in unemployment?

Have you tried asking your cc provider(s) to reduce the interest rate? (You can do this over the phone.) You may be able to cut the cost considerably. For more tips, see Martin's *Credit Card Shuffle* article

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

lisyloo

It doesn't sound like a massive problem to me.
Ok, you can't clear the debt while you're not working, but you can service it at £30 per month and keep your credit rating good.

Do you have any better off friends who you could do some odd jobs for whilst you're out of work?
I'd gladly pay an unemployed friend to do my ironing/cleaning etc.
Ok, it's not glamourous or exciting, but it's better than nothing.