negotiating with creditors

miner-dave

i've heard that it is possible to negotiate with credit card or loan companies for a 3-6 month period where you dont pay, or offer a lower token payment. what i would like to know is
1) how to go about this
2) how badly this affects your credit rating and how long it stays on for?
thanks

DarkConvict

If you make payments under the minimum amount you may/will be given late/no payment markers on your credit file, if you get to far into arrears (about 3 months) they will issue a default against you. The default is what will have the greatest impact.
Defaults last 6 years, and make it difficult and more expensive to get credit.
Late Payments have little impact unless you get a lot in succession, although there impact is reduced as a year or so. They last i think for 12 years or 6 years from account closure. They get grouped together so a little different to other markers.

You can do is ask them, but i would try to avoid it if possible. Been on minimum payments is dodgy territory in that you maybe on the edge of a very quick downward spiral. They may increase your rate if they consider you a bigger risk, if they do you can stop it - http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

if you are struggling, post up an SOA in MSE format. http://www.makesenseofcards.com/soacalc.html

You can also seek advice from National Debtline and CCCS for free professional advice.