Trapped with credit card debt

WillboWaggins

Hi All

I write on behalf of my father. He's got approximately £7500 of credit card debt spread accross three different cards. Needless to say, he's paying an extortionate amount of interest - only being able to meet the minimum payments (£190 monthly).

His credit rating is excellent, HOWEVER his income is only £6000 per annum. He's applied for a credit card (0% balance transfer) however was rejected due to his income. I suggested that he apply for a loan as this would enable him to consolidate the debt into a less expensive form of borrowing, however, once again he was rejected based on his income.

I have contemplated making a joint loan application with him, however i'd prefer not to if possible as i'm hoping to purchase a property next year, and don't want to be rejected for the mortgage because of a hefty loan in my name!

Has anyone got any idea's or suggestions on the best way to tackle this debt. I should clarify that he cannot afford to pay any more than the £190 a month he's already paying.

Many thanks in anticipation,


Will

Barricade

Request that the interest on the accounts be frozen - see link below and "ask creditors to hold action on account" - edit as necessary.
If they refuse, have a look at the letters listed on the link below - there is one for when "a creditor refuses to freeze interest"

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

-B

WillboWaggins

Will freezing the interest not just prevent it from rising? ideally we're looking for a situation that will involve a lesser rate overall. All three cards he owes on are charging a rate of 17/18%!!

Barricade

Freezing the interest will stop the debt from rising - Which long term is beneficial as he will actually begin to start paying off the balance rather than just the ever acrruing interest.

Look at the long term of the freezing interest vs Loan.

Freezing interest - Balance 7500 (no more) - montly payment of £190 - paid off in 39 payments
Loan - Amount = £7500 + typical APR (say 7.7%) = outstanding balance of £9005 - 60 payments @ £151.

WillboWaggins

Oh i see. So it doesn't mean freeze the interest RATE, but actually freeze the interest amount?

Sorry to seem nubile, i've not had many dealings in this regard.

Many thanks for your prompt response!

themull1

Has he got any equity in his house?