Credit Card Repayment Plan?? HELP!!!

spendy

I was recently made redundant, and have had to take on a job at less pay, so I don't make enough to may off all of my debts.

I've recently put a stop on my 2 credit cards, so I would just be paying them off, but I still can't seem to make ends meet.

I am thinking of calling the card providers (Sainsburys and Tescos) and asking them if I can set up an affordable payment plan, but at the moment, my credit rating is in tact and I would hate to have to have any major defaults on it ... does anyone know how this will affect it?

Thing is, I don't just want to not pay it ... I know I got myself into debt and want to pay it off.

Any help would be appreciated.

Thanks

Tixy

Usually if you pay less than the minimum payment regularly then after 3-6months you will receive a default notice and a default will be marked on your credit file for the next 6years.

Sometimes a credit card company might allow you to pay reduced payments for say 6months and agree not to default you, but if this is likely to be an ongoing issue, which it sounds like it is then defaults are likely to be inevitable.

the_insider

If you think that you're going to be able to return to paying the minimum within a few months it's worth speaking to them, they will mark your credit file to show that you are on an arrangement but this will not have as much of an effect on your credit score in the long run as a default would. But if you're thinking that your problems might be a bit more long term then it might be a good thing to let them default the account after you've been making the reduced payments. You won't pay any more interest or charges and although you will struggle to get credit for six years it's not always a bad thing!