can't afford to pay the minimum of credit card?

Alex652

Any advise would be appreciated.

I'm unable to afford the minimum of my vanquis credit card. I've recently finished uni and I'm claiming job seekers allowance until I find full time work.

The minimum i have to pay is 63 pounds every month I also have other debts and credit cards. So I'm left with no money and have been struggling. This is becoming very stressful

Last month I was late because I didn't get any money until the friday and it takes 3 working days for the money to transfer over. So not only am I'm trying to pay the full amount but i'm getting charged late fees. I've been about 300 pounds over my agreed limit for quite a while now. Which is 1000 pounds

sharpy2010

How did you get a credit card with no way of paying the card back the money you owe it?

Alex652

I've had the credit card a while before I even started uni.

Saucepot

The citizens advice bureau is your first port of call. They will run through your options and how to approach the credit provider.

ppc1

No doubt if you are late you are possibly getting calls from a collection agency?

I would recommend that you try and speak with Vanquis, explain your situation and advise that you are currently recieving job seekers allowance and unable to pay the minimum.

Do you invisage this being short term or longer term? A hard question to answer but depening on how you answer they may offer different solutions.

I would detail an income and expenditure. Note all of your expenses including food, rent, utility bills etc and also a advise them of the other debt you have and advise them what you can afford to pay at this time. If short term they may suspend interest and late fees for a couple of months. If longer term they may look to put you on an arrangement or class you as severe hardship which may lead to a default being noted against your name.

Either way, they are likely to effect your abiltiy to obtain credit in the future.

I hope you get things sorted.

regards, BP

Alex652

I have spoken to the national debt line before and itemizing debts/bills was their advice. Which would help a lot but I'm trying to fix my credit.

I've just spoken to Vanquis and they have afford me a fixed payment plan of £55 per month over 9 months which will bring my credit card back into credit. This is better news but i'm a bit confused as to why they didn't offer this to me before. They have offered me a low interest payment plan before twice but i'm not sure if that's the same thing. I was told i couldn't do that again though.

ppc1

Many organisations have different solutions available and many options can only be used once.


I guess the question you have to ask is can you afford £55 per month? I struggle to understand how you can afford that on Job seekers allowance?

It is most likely that the £55pm is what a lender would call an "informal agreement" They have probabally reduced the interest ( they may not of done) it is likely to continue to effect your credit file as the account is in effect still in arrears until all 9 payments are made. It may also be worth asking family/friends if they can help you to pay off the debt? Maybe you can then approach Vanquis for a full and final setlement payment which will not effect your credit file.

Alex652

Well no i can't really afford 55 pounds but I'm still going to talk to the citizens advice bureau and do an itemizing of my incoming/outgoings as you mentioned.

It is better that i'm paying at least something rather than nothing though right?

I Just had to pay 65 pounds to them I thought the 55 pounds was starting straight away but I couldn't hear her very well on the phone. I guess it starts next month. But 55 pounds spread over 9 months is 495 pounds and I'm only 300 and something overdrawn. ouch

It's frustrating that I only need that to be back in the green. Also most of 300 is the result of late fees, overdrawn fee's and interest when I had absolutely no money coming in.

jd87

*cough* deBt *cough*

Sorry.

ppc1

Alex652 wrote: »

Well no i can't really afford 55 pounds but I'm still going to talk to the citizens advice bureau and do an itemizing of my incoming/outgoings as you mentioned.

It is better that i'm paying at least something rather than nothing though right?

I Just had to pay 65 pounds to them I thought the 55 pounds was starting straight away but I couldn't hear her very well on the phone. I guess it starts next month. But 55 pounds spread over 9 months is 495 pounds and I'm only 300 and something overdrawn. ouch

It's frustrating that I only need that to be back in the green. Also most of 300 is the result of late fees, overdrawn fee's and interest when I had absolutely no money coming in.

At least you are trying to take action.

I cannot disagree that the advice from Citizens advice bureau and CCCS is good but they are extremely busy and it can take weeks to get seen or have your case reviewed. from what you have disclosed your affairs do not seem complex.

There are plenty of income/expenditure forms on the net, detail all of your income/expediture and if there is a disposable figure you need to share this out proportionally to all of your creditors, if it shows a negative disposable income, you cannot afford to pay anything and if thats the case, i would question how you can pay the £55pm?

From the small information you have given me it seems that Vanquis are offering what is called a reage/restructure. It looks like interest is continuing to be accrued on your account.

I hope you get sorted and I hope my information helps you.

regards BP

Alex652

ppc1 wrote: »

At least you are trying to take action.

I cannot disagree that the advice from Citizens advice bureau and CCCS is good but they are extremely busy and it can take weeks to get seen or have your case reviewed. from what you have disclosed your affairs do not seem complex.

There are plenty of income/expenditure forms on the net, detail all of your income/expediture and if there is a disposable figure you need to share this out proportionally to all of your creditors, if it shows a negative disposable income, you cannot afford to pay anything and if thats the case, i would question how you can pay the £55pm?

From the small information you have given me it seems that Vanquis are offering what is called a reage/restructure. It looks like interest is continuing to be accrued on your account.

I hope you get sorted and I hope my information helps you.

regards BP

Thank you for the advice so you would say the income/expenditure form is the best option for someone on a small income? I do have one of those forms I think it was sent from the national dept line.

I'm pretty sure the women say no interest on the phone but I could be wrong it was hard to hear here. But it's pretty obvious there must be interest charge if it's 9 months until I can use my card again. Nothing is ever fair and simple with creditors