jf65

jf65

i need advice i owe bank of scotland 5000 for overdraft 2000 for credit card i will never pay this of should i change banks and ask them to freeze the interest i would be grateful for any advice

WASHER

Firstly, welcome to MSE.

You need to change banks, make sure the bank you change to has nothing at all do with any debts you may have.

Then change over any direct debits etc and inform your work of the change of bank etc.

You must pay something towards these debts, even a token payment would better than nothing.

You could post an SOA (incomings and outgoings) and we will see if we can help to reduce your outgoings.

You could of course contact a debt charity like the CCCS or Christians against poverty, they will help you free of charge.

WASHER.x.

jf65

thanks for your advice i thought that was the right way to go about it i dont want to reduce payments on any thing else just feel it will never be paid of all i am doing is paying interest every month thanks again

WASHER

You could ask them to freeze the interest, they can only say no. Some banks are more accommodating than others. You can only but ask.

jf65

thanks again i can only try

CLAPTON

If you simply ask them to freeze interest they will almost certainly refuse

You will need to tell them you are unable to pay the monthly payment before they will freeze interest and fees (and even then that is not certain)

Once you stop paying the minimum amounts they will probably then default your accounts and close your a/c with them

This will adversely affect your crdit rating for 6 years

But before you do anything drastic post up a full SOA so your full circumstances can be seen
format here:
http://www.makesenseofcards.com/soacalc.html

jf65

i can still pay the minimum payment every month but i cant afford any more thats how i was hoping they would freeze my accounts so the money i pay comes of my balance and not just paying the interest i dont want my credit rating affected though

DarkConvict

If you can only afford minimum payments, whilst the credit file will show no payments missed, the fact you can only afford min payments is the issue. As if there is any small stags or increases in interest rates you are likely to end up making reduced/missing/default payments. And if this happens you may find other creditors see you as a risk and increase rates, as such you nose dive. A DMP maybe something to consider in the near future, call CCCS to discuss it.

As above post up the SOA.