Closing credit card accounts

mani99

Hi all,

At the moment I am just about paying off the minimum amount on all my credit cards each month and this is not really making much of a dent into the debt as a whole. I wanted to know would it be a good idea for me to call each of the lenders and explain my situation and perhaps come to an arrangement where the account was closed and I would pay a set amount each month until the balance was paid off? If so, how damaging would this be to my credit score?

Thanks in advance for any advice which is offered.

Mani

Moggles_2

At the moment I am just about paying off the minimum amount on all my credit cards each month and this is not really making much of a dent into the debt as a whole.

Provided that you always make at least the minimum payment required each month, your credit rating will not be affected, but this is not money-saving of course.

Why are you paying so little each month? Have your circumstances changed recently?

I wanted to know would it be a good idea for me to call each of the lenders and explain my situation and perhaps come to an arrangement where the account was closed and I would pay a set amount each month until the balance was paid off?

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.

TBH, it's in your interest to work out a payment schedule in order to pay it off as quickly as possible, rather than rely on the credit card companies to impose a payment schedule.

Have you tried asking each of your cc providers to reduce the interest rate? (You can do this over the phone.) I wouldn't mention "your situation" though. If they see you as high-risk, they're more likely to raise the rates! For tips, see Martin's *Credit Card Shuffle* article

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

Very best
M

mani99

Thanks for the reply. Yes my situation has changed hence the reason I am just able to pay the minimum each month. I am trying to find ways of earning extra income but in the current climate part-time jobs aren't very easy to get.

I dont want to ruin my credit rating, but I cant see how I will pay these cards off anytime soon regardless of how much I budget. I've done the sums on paper and I can only literally afford to pay the minimum each month.