Need help re: credit card repayments

binaryuniverse

OK, Sh*t has hit the fan I've lost my job which is unexpected. My minimum payments on my loan + credit card debt is approx £160 a month which, if I get JSA of £65 a week I won't be able to meet along with my other bills.

I have nothing with which to pay off these debts, no savings or anything. So my question is this: if I offered the credit card companies a reduced payment for a time until I get back in to work will this affect my credit rating at all? At the moment I have 4 cards all with a balance on that I have been slowly bringing down over the last year and keeping the rates the best the can be. Would it be worth me transferring the whole lot to one card and then offering a reduced payment on that?

This whole thing is new to me as I have been in work since I was 16 so bear with me if I'm a little confused.

PS. Yes I'm fully aware that if I don't meet the repayments I could trash my credit worthiness anyway.

binaryuniverse

Anyone?

CLAPTON

if you can't pay then your can't pay..it's as simple as that

but yes, you probably will trash your credit rating... is that important to you?

best to write to each creditor and say you have unexpectedly become unemployed, and so can't pay the normal repayments, and ask them to suspend interest and fees for 6 months until you try to get a new job.

you will get more responses and support on the debt free wannabe board.

Susie56

You need to inform each company asap and offer a minimum £1 -£5 a month payment and ask them to freeze interest. Most will agree for 6 month period

never-in-doubt

Susie56 wrote: »

You need to inform each company asap and offer a minimum £1 -£5 a month payment and ask them to freeze interest. Most will agree for 6 month period

Most will not agree, it is up to them if they agree! They do not have to agree to anything and actually, most refuse! :rolleyes:

(within the CCA there is a little bit there that allows them to charge default interest)

HOWEVER any reasonable offer must be accepted by the lender.

never-in-doubt

binaryuniverse wrote: »

Anyone?

Mate sorry to hear you lost your job - bummer :mad::mad::mad:

Susie56

never-in-doubt wrote: »

Most will not agree, it is up to them if they agree! They do not have to agree to anything and actually, most refuse! :rolleyes:



Must be the way you ask them then..... apart from one or two particular lenders I find the rest are reasonable when circumstances are properly explained to them:cool:

binaryuniverse

Thanks for the info guys. Susie, did they put anything on your file that could affect future credit? I'm 26 in a few months and I don't want a short time out of work to mess up any future lending (like getting a mortgage or something). I've been doing really well at chipping away at my debt slowly to bring it down over the last year and want that to continue.

Mate sorry to hear you lost your job - bummer

Cheers mate. Not the best time of year for it to happen. However I'm gonna take the positives out of all this and enjoy christmas for a change! Plus I'm going to try and gain some qualifications whilst I'm out of work.

never-in-doubt

binaryuniverse wrote: »

Thanks for the info guys. Susie, did they put anything on your file that could affect future credit? I'm 26 in a few months and I don't want a short time out of work to mess up any future lending (like getting a mortgage or something). I've been doing really well at chipping away at my debt slowly to bring it down over the last year and want that to continue.

Mate, don't take too much susie said as gospel.... she was spamming the forum last night and had plenty of posts removed..... :eek:

However, if you pay less than the minimum payment they will, and have the right to, add a A/P marker which will affect you. In fact, whatever you do will leave a marker against you but surely a late payment or agreed payment marker is better than late charges etc? I'd still ask the banks but don't hold your breath

binaryuniverse wrote: »

Cheers mate. Not the best time of year for it to happen. However I'm gonna take the positives out of all this and enjoy christmas for a change! Plus I'm going to try and gain some qualifications whilst I'm out of work.

You do right, well done on you. Don't let it get you down mate, and seriously, do what you can with regards to the outstanding debt - don't be worrying - have a good christmas and I hope you get a job sorted asap...

binaryuniverse

never-in-doubt wrote: »

Mate, don't take too much susie said as gospel.... she was spamming the forum last night and had plenty of posts removed..... :eek:

Noticed those. Including the ones about some debt unenforcability case. So wasn't too sure either.

However, if you pay less than the minimum payment they will, and have the right to, add a A/P marker which will affect you. In fact, whatever you do will leave a marker against you but surely a late payment or agreed payment marker is better than late charges etc?

Well at the moment it's looking as if I have 4 options.

1) Try continuing to pay as normal - which is doable for a short amount of time I think but, unless I find another job shortly after christmas, not sustainable without another form of income. Keeps up with no missed payments and no little markers.
2) Ask the banks if they can reduce my minimum payments for a while (with the possibility of that having a detrimental effect on my credit report. or perhaps just reduce the % on the minimum payments.
3) Stop payments all together. Trash my file, end up with debt collection agencies hounding me and such forth. But I have no intention of going down this route.
4) Move ALL my credit card debt to the one card (which is certainly doable as U have a 6.5k limit on my HSBC card with 0% for 6 months offered) and offer them a negotiated payment scheme. Which would hopefully have a better effect on my file than having 4 cards all showing AP. However, once the 6 months is over I doubt I'll be able to get a good a rate as I am on now over the 4 cards.

Just weighing up my possible options and looking at how things can affect me now and in the long term. Not going to make any rash decisions.

You do right, well done on you. Don't let it get you down mate, and seriously, do what you can with regards to the outstanding debt - don't be worrying - have a good christmas and I hope you get a job sorted asap...

Never been one to sit around complaining about my situation.Glass is always half full asnd all that. I'll just take the bull by the horns and give it a good kicking for good measure.

never-in-doubt

Could you get one 0% card? Then BT everything to this and make payments to just one card? So say you owe £6500 you'd only pay back around £130 per month (assuming 2% repayment)....

You could, if necessary use another card to pay the main one - i.e. use peter to pay paul..... but obviously, you'd only do this as a last resort?

I guess an A/P marker isn't that bad if you keep to the limit and repayments etc cos you'd be able to appeal using the fact you had agreement from the bank and the only reason you had to take this action was through job loss..... I mean it is a perfectly viable and grown up responsible decision.

I doubt it would go against you 'that much'..... Granted you may have to appeal each decline (when you get sorted) but shouldn't be too much of a hassle.....