Halifax credit card - is their advice acceptable?

HappyDaze_3

Hello - long story short, I have a Halifax credit card with a £7000 credit limit which I exceeded about 3 months ago (mostly because of interest) I have recently cancelled the card to avoid interest rate increases and am paying off more than the minimum each month. The problem I have is that even though I am paying more than the minimum it is not clearing the over limit amount and I am subsequently racking up default charges on top of interest etc etc. So despite having given Halifax nearly £500 in the last 3 months I've made absolutely no headway. I got my latest statement last night and felt quite sick about it all so gave them a call.

Half an hour later after being told I should take out a loan, was put through to the 'financial difficulty' team to be told I didn't have financial difficulty because my bank balance was quite healthy (I bank with Halifax) they advised me to miss this months payment. This would, they said, put me into the hands of the collections department immediately after the payment was missed. I would then be able to negotiate stopping interest payments until I was 'back on track'. I stressed that I didn't think this was a viable option because I don't want to damage my credit rating and they suggested this was really my only option unless I could pay the minimum PLUS the interest (would be around £350 - I just don't have this money).

Can anyone provide advice on whether or not I should follow this route or keep plugging away until I can get the payment down? I find this all quite distressing - I know I owe this money and will pay every last penny I owe but I don't think they are being very supportive

Thank you

lisyloo

This is very common.
They will not take measures until you are in arrears, so by implication they will not help until you mess up your credit rating.

So you have to choices.
Carry on as your are with the struggle, or mess up your credit rating for the future.

We can't comment on which is the right way to go for you, but can state that those are your options.
I would get over to the "dealing with debt board" and be prepared to reveal all in a statement of affarirs (SOA). It's only when you reveal everything that people will be able to give you advice.

nbinblack

Do not miss the payment if you bank with the Halifax, because they will clear your account out to pay the card. You need to move your current account if you are contemplating missing payments to go down the financial difficulty route.

HappyDaze_3

Great advice, thank you so much.

nbinblack - thanks for the warning, had no idea Halifax did that!

I will find a way to pay off more, ANYTHING to get rid of them.

the_insider

One thing to bear in mind is that if you are overlimit your credit rating will be reflecting this at the moment. You have to weigh up the disadvantages of entering a repayment arrangement with them for a short term and getting back on track, or struggling on for however long until you can bring the account back within limit on your own.

stator

And definately move your current account to another bank. Since you're not "in difficulty" have you asked them to increase your limit? They probably won't but it's worth a try.

opinions4u

Halifax credit card - is their advice acceptable?

They have told you how the system works. Don't assume it to be advice.

While you remain over limit you are trashing your credit record. Once you miss payments you are also trashing it.

Time to cut back and get back within the credit limit and then start managing the debt down. See Debt-Free Wannabe for help.

YorkshireBoy

Paying your bill sooner, rather than leaving it to the last minute each month, will help prevent you going over limit.

Cancelling PPI (if you have it?) will have the same effect, due to the way it's applied to your account.