Letter to credit card

flowergirls

Hi can anyone help. I would like to send letters to my husband credit card to ask it we can reduce payments due to me being of sick for the last 2 and ahalf months. I have not been getting any money. If there template any were?

Tixy

The letters below may help (although not exactly for your situation but you could use as a base), but you need to be aware that if you reduce your payments below the minimum it could impact on your credit file. Also as it is your husbands debt but you have been ill you would need to be careful in your wording.
http://forums.moneysavingexpert.com/showpost.html?p=21654579&postcount=52
http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=54

flowergirls

Thanks for the reply. We have 3 young children to. Which is one of the reason i was going to ask to reduce payments as we r finding it very to hard pay bill and buy food. Wouldn t mind if it was just us, but they need to eat.

Tixy

Hi Flowergirls

Well food is certainly a priority over credit card payments. You must all eat first before you pay your cc's more than a £1 repayment.

If you are struggling financially it might eb useful for you to write out a detailed income & expenditure account to see what you have coming in and where it is being spent. This link http://www.makesenseofcards.com/soacalc.html gives a really good template.

If you post the results of the above on here (choose format for MSE at the bottom of the calculator) then we may be able to advise you on a way forward - certainly one that makes sure you are all fed and warm.

flowergirls

Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 1400
Benefits................................ 920
Other income............................ 0
Total monthly income.................... 2320
Monthly Expense Details
Mortgage................................ 370
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 20
Council tax............................. 160
Electricity............................. 55
Gas..................................... 45
Oil..................................... 0
Water rates............................. 47
Telephone (land line)................... 22
Mobile phone............................ 20
TV Licence.............................. 12
Satellite/Cable TV...................... 0
Internet Services....................... 12
Groceries etc. ......................... 280
Clothing................................ 20
Petrol/diesel........................... 40
Road tax................................ 15
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 300
Other child related expenses............ 100
Medical (prescriptions, dentist etc).... 20
Pet insurance/vet bills................. 0
Buildings insurance..................... 5
Contents insurance...................... 15
Life assurance ......................... 10
Other insurance......................... 90
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1730

Assets
Cash.................................... 0
House value (Gross)..................... 170000
Shares and bonds........................ 0
Car(s).................................. 500
Other assets............................ 0
Total Assets............................ 170500

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 75000....(370)......4
Total secured & HP debts...... 75000.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
Northern rock..................0.........374.......0
Lombard........................0.........163.......0
A + A Credit card..............0.........240.......0
Tesco CC.......................0.........104.......0
Egg............................0.........74........0
Egg Money CC...................0.........80........0
Tesco Credit Card..............0.........185.......0
Total unsecured debts..........0.........1220......-

Monthly Budget Summary
Total monthly income.................... 2,320
Expenses (including HP & secured debts). 1,730
Available for debt repayments........... 590
Monthly UNsecured debt repayments....... 1,220
Amount short for making debt repayments. -630
Personal Balance Sheet Summary
Total assets (things you own)........... 170,500
Total HP & Secured debt................. -75,000
Total Unsecured debt.................... -0
Net Assets.............................. 95,500
Created using the SOA calculator at www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using IE browser.


I hav added my wages of 290 which i am not getting at the moment as i am of sick.

Since being of sick i have lost one of my jobs which means i have lost 350pound a month. This is why it looks so bad.

Hope u help. We have be giving the 2 oldest which go to school pack lunch to try and save money. I already have arrangement with my credit cards. but i am finding this hard to pay at moment.

I know this debt is r own fault but would like some advise. Would go to CAB. But i am not able todrive at the moment.

flowergirls

Sorry forgot to say ur house is shared ownship we only own 65% of it.

Tixy

Hi Flowergirls

Are you paying rent of the other 35%? Is this inlcuded in the £370 Mortgage figure?

Council tax looks high - are you in the correct band? there is a quick check you can do to see.

You don't have any income under your income, only your partners income? So when you are not sick do you now get £290 but you used to get £290 and £350?

Your childcare looks high -especially as the 2oldest are at school. What does it relate to? Presumably you aer not working many hours? about 16 I would guess? Could you reduce your childcare? Any chance you could work different hours to your partner so that you don't need outside care?

What are the other child expenses of £100? can they be reduced?

Other insurance £90, what is this? can it be reduced?

As you can't get to CAB you could try calling CCCS or look at their online debt remedy tool on their website. CCCS do most of their work by telephone so you could see what they suggest.

Unless you can make back the £630 by earning more of cutting the child costs I think a debt management plan might suit you best but do take free professional advice as to how this will impact on your credit ratings etc.

Good luck

flowergirls

The childcare was including kids club in school hols. Although my youngest starts school in Jan.

The insurance is an ISA for the mortage.

No we don t rent the other bit of house just pay 25 a month for ground rent which includes building insurance. Now that i will only have the one job the childcare will go down will have to re work that.

Which do u think is best CAB or CCCS

The council tax is higher as we missed one or 2 month so increase it it was about 135.