Do I make an agreement with a credit card company

Power_of_three

Hi
am new and have just registered, but have read some threads and this look like a good place for advise so here goes....
I have contacted capital one to say that I am struggling with my payments, if i fill out the SOA and send to them, they say they might reduce my payments, but this will record a default on my credit rating, am I better to take a loan to pat this off, as I may be looking for a house some time in the furre by my self

mr.ton

No do not take out any further borrowing & report their sorry asses to the the financial ombudsman service.

DGJsaver

Why on earth should the OP refer them to the FSO (yet) ?!

phil80

They have done nothing wrong so how can he report them.

DarkConvict

Mr.ton is a fighter, so do take that advice with great caution.

Before going to the FOS you need to be in a deadlocked dispute, and currently their is no dispute, its just your income is no longer high enough. So the FOS is not a route for you to take at this time!

By law, if they plan to place a default they must send you a default notice. - http://forums.moneysavingexpert.com/showpost.php?p=30208835&postcount=49

It is however quite likely you will get arrangement to pay/late payment markers on our credit file. As any agreed payment to them is informal and still remains below your minimum payment.

Power_of_three

How much will this affect any borrowing I might need in the future, will it adversly affect my credit rating

motoko

If you can get a loan that covers the card balance in full, allows you to pay it off at a rate you can afford, and is at a lower rate than the credit card, then go for it, but make sure you close the credit card so you can't get into any more debt. This has to be better than getting a default on your credit report, especially if you're planning to start saving for a house once your debt is clear. A default is pretty serious compared to having a couple of missed payments, I think it stays on your report for 6 years after its paid off but I haven't had one so check this. On the other hand it may take you 6 years to save up a deposit after paying off your debt, so in that case it would be gone by the time you start applying for mortgages and wouldn't affect you at all.

If you've been struggling with debt for a while then you probably can't get a loan like this due to your credit history, but if you've kept up with payments so far and are just starting to have difficulties it has to be worth a try. If you've just missed a payment here and there so far and caught up the following month, its worth checking your credit report, as credit card companies don't always report these minor offenses, so you may find your history is fine if you're lucky.

...having just checked this, the default stays on your report for 6 years from when it starts NOT from when you pay it off...

DGJsaver

mr.ton wrote: »

No do not take out any further borrowing & report their sorry asses to the the financial ombudsman service.