Offered a payment plan by CC

duryard

Hi

We have a credit with Lloyds with a balance of about £6500. We struggle sometimes to meet the minimum payments.

The CC Company have offered to close the Credit card account and effectivily convert it to a loan with a fixed payment for the first 6 months which we are thinking about £60. They then review it and we come to a agreement for the next 6 months.

We would welcome other advice as not sure weather its a good thing or not.

:eek:

CLAPTON

do you or do you not actually pay the minimum amount each month?

they may mark your a/c as 'arrangement to pay'
when you say 'reach an agreement' I think you mean they will tell you what to pay

if you're desperate and don't mind your credit record being trashed then it may be the best you will be offered

duryard

we somtimes make the payment, usually late and somtimes not as much as required

paulmcerlean

They will mark your credit file with this and it will affect your ability to obtain further credit.

Saints2011

duryard wrote: »

Hi

We have a credit with Lloyds with a balance of about £6500. We struggle sometimes to meet the minimum payments.

The CC Company have offered to close the Credit card account and effectivily convert it to a loan with a fixed payment for the first 6 months which we are thinking about £60. They then review it and we come to a agreement for the next 6 months.

We would welcome other advice as not sure weather its a good thing or not.

:eek:

Based on what you have said here, if you are not meeting the min payments always and are getting stung by £12.00 late payment fees if I were in your situation and didnt want any mainstream credit for the next few years I would think this would be a sensible option, but I am no expert!

Degenerate

Your credit rating is going down the pan anyway with all the missed payments. It sounds like a reasonable offer given the size of the debt. In your situation, I would accept.

Xbigman

One question you might ask, is £60 going to cover the interest they are charging you?





X

Degenerate

Xbigman wrote: »

One question you might ask, is £60 going to cover the interest they are charging you?

X

This is a good point. One would expect some concession over the interest rate as part of an arrangement to pay.

bella2121

I'm on payment arrangements with all my credit cards at the moment and its the best thing I did wish I'd have done it along time ago, with mine all the interest has been stopped good luck hope it works out for you