Help Needed- whats the right or wrong way?

emskizzle

Hi There,

I am hoping someone somewhere can help me because i keep drawing a blank.

I have called the credit cards i owe money to and explained that i cant keep up with some of my payments and they have been completely useless and refused to offer me a lower interest rate, that closing the account is not an option and the only way they can put me through to their financial department to discuss an agreed payment method would be for me to miss a payment which i am loathed to do. My Halifax card is 20.95%.

My boyfriend just didnt pay his cards and 2 years down the line got a letter from 2 separate companies saying that they would accept a final offer of £600 for each debt when both were originally over £2000 each! I worry to much about my finances and dont want to leave it to years as knowing my luck i will get CCJ's and go knows what else.

Does anyone have any suggestions as to what i can do because all of my earnings go on making minimum payments and i am worrying that there will come a time in the not so distant future where i wont be able to afford petrol for my car!

Thanks in advance.

Saints2011

Speak to the Credit Card companies and if you are seriously struggling with min payments and living comfortable, would it be sensible to discuss a repayment plan but be aware this will affect your credit rating and do not expect any further credit in the next few years.

Also speak with citizens advice, dont give up yet

My views

Degenerate

As long as you are meeting the minimum payments they are unlikely to budge. Only when you start to fall behind will they consider negotiating. There are several steps to the process before they start taking you to court. As long as you continue to communicate with them and remain cooperative it is should not get that far. Courts is supposed to be a last resort, and judges take a dim view of companies wasting their time.

I'd say you best bet is to start with the card that charges the highest interest rate. Call them and inform them that you are going to miss your next payment, miss it, call them again to apologise but explain you don't have the money, and so on until they show a willingness to negotiate a repayment plan. Keep a record of all your communications.

But before you do any of this, get yourself over to the Debt-Free Wannabe board and do a SOA to work out how bad your situation is.