£1 token payments

robinson79

Hello,
I've read a few times that people have been advised to make £1 token payments to their creditors when times are tough, and they can't afford the full minimum payment.
Can anyone tell me more about this please, and how it affects your credit rating etc. Do you get charged for not paying the minimum amount?
thanks
x

moozie_2

Hi there

This is really a last resort and should only be treated as such. The companies will most likely charge interest as well as charges. It is advisable to write to them individually and explain why you are sending only token payments. Also, you may want to include a statement of affairs that shows how limited you are, hence, the token payments.

Have you posted an SOA on here? We may be able to advise you on cutting down to avoid this last resort perhaps

chevalier

Hi there
People normally are doing this, whilst preparing their Statment of Affairs for CCCS or Payplan. The are often advised to do this whilst their Debt Management Plan is being set up.

I haven't heard of it being something you can do long term. It is just a way of showing good faith whilst other things are being sorted out.
chev

gettingitsorted

The CCCS told my husband that the token payments are so the companies do not think that you are just abandoning the debts all together and that you are at least trying while you sort yourself out

hope this helps