How to handle this Credit Card debt once 0% is up?

aprilfairy1

Hi There,

My husband and I have a joint credit card with about 9000 pounds on it. The 0% interest period is now up and we cannot afford to pay back the Credit card with the interest.

We have immigrated to another country, but still have our bank accounts in the UK, and continue to pay the debt off, we have not missed a payment yet.

We have tried applying for other Credit cards so that we can transfer the balance while we get settled in our new country. But they have not given us a large amount of Credit as we are not working in the country.

We have a house in the UK, that we are renting out and would like to add our credit card debt and pay it off with the mortgage, but they won't allow us to as we are renting the house out. Any advice how we can get around this?

Does anyone have any advice, what would be the best thing to do, in order for us not to be charged interest and still pay this amount off. We were paying the minimum of 80 pounds a month.

Please help.

emilyxxx8

anyone ideas ??

Tixy

What card provider is it? Do you know what the new minimum payment will be once interest is being charged? How much can you afford per month?

You could try writing to the card holder and explaining that you cannot afford the minimum repayments and offering reduced payments and asking if they will freeze interest & charges.
They may agree to this or they may not, although even if they do it will affect your credit file (in the UK) significantly, ie they will issue a default and that will stay on file for 6years. This obiviously might affect your mortgage, and might mean you will struggle to move or fix your mortgage as the bank of england base rate increases.

The other issue you may have is that if it is clearly going to take a very very long time to clear the debt then the creditor may decide not to accept your payment and to try to obtain a CCJ and then a charging order against your UK property.

aprilfairy1

the card is with the AA, I think our repayments are going to go up to 200 a month, I need to check with my husband.
But then we will be paying mainly the interest and not the debt off.

We are going to try and put all of our spare cash into paying this debt off as soon as we can.
Does anyone have any ideas of how I can save money monthly?