Direct approach to credit card companies

dazla

I am struggling to pay back my credit card debts and am considering a DMP. I am trying to avoid having to do this if I can, so am considering approaching the credit card companies directly to see if they can help me. Has anyone ever done this and did the companies do anything to help, such as freeze interest or reduce payments

Thanks
Daz

bottleofred

Hi Daz,

Some companies can be very helpful and will freeze interest and accept reduced payments. Others on the other hand will continue to charge interest with reduced payments and may also default you for paying reduced payments (they will almost certainly place defaults on your credit file), but it's worth asking.

Good luck

Red

Chrisblue1962

Hi Daz

You say you are struggling to pay your credit card debts.

• How many cards do you have?
• Are you struggling to pay all of them full stop or is it just that you are finding that one of the CC bills just tips your finances "over the edge" so to speak?
• Have you tried getting balance transfers for any or all of the cards? - makes the debt cheaper to repay
• Have you missed any payments?
• Have you spoken to any of CC companies yet?

If you can, start trying to nibble away at the most expensive CC by paying minimum on others but as much as you can afford on CC with highest APR. by doing this, monthly payments will slowly start to reduce month on month BUT if you can maintain a fixed amount each month to most expensive CC then debt will clear even quicker - this repayment method is known as "Snowballing".

By meeting payments on all CCs, you will avoid damaging your credit profile with missed payments and default notices.

Once you have posted more info, other folks may be able to pitch in too. Well Done for looking to "firefight" before the fire gets too much out of control

dazla

I am paying them all every month but have only £50.00 left to live on ! I have 8 credit cards in total, I can't get any 0% transfer deals, haven't missed any payments and haven't spoken to any of the cc companies yet

dazla

I am paying them all every month but have only £50.00 left to live on ! I have 8 credit cards in total, I can't get any 0% transfer deals, haven't missed any payments and haven't spoken to any of the cc companies yet

Chrisblue1962

Thanks Dazla,

I think you need to post a full Statement of Affairs - basically, a list of outgoings versus income - so fellow DFW'ers can get the full picture and advise accordingly.

CH27

Post your SOA & people will be happy to help you.

Tixy

If you are considering a DMP make sure you use one of the free debt advice charities not a commercial company who will charge you fees.
Whilst its possible to sometimes negotiate with your creditors yourself this is in effect a self-managed DMP. Some people manage their own DMPs well and like the control that gives them, but a lot of people do find it easier to have a thir party to manage it on their behalf.

If you want to post up a statements of affairs (SoA) as others have suggested the link is here - http://www.makesenseofcards.com/soacalc.html