Can I Stop My Credit Card And Pay Back The Money Monthly?

Elric

Hi

I have 2 credit cards - one with Barclays an another with my bank, Natwest

Ever since being out of work the cards have been up to their maximum limits and so for 2 years i've been paying the minimum monthly payment and so not paying any of the balance off

The Barclays I owe £2,600 and the Natwest I owe £2,800 - the minimum monthly payment cost me about £130 which is effrectively dead money - I know i should put more money their way to avoid this situation but bills keep pouring in, food, elec, gas etc and well, before i know it I have to use the cards up to their max again :mad:

I wondered if i could stop my card and pay them back a set amount each month or if there is any help i can get in any other way - I can't consolidate the debts because it is less than £75,000 as i understand..?

as always help appreciated
thanks in advance

Elric

opinions4u

I wondered if i could stop my card and pay them back a set amount each month

Tesco were selling 3 pairs of scissors for £1 when I was in there the other day.

1. Cut the cards up
2. Visit www.makesenseofcards.co.uk
3. Complete a statement of affairs (SOA)
4. Visit the Debt-free Wannabe part of this forum
5. Post your SOA there
6. Start spending less
7. Pay more money off the credit card that charges the highest rate
8. Make sure you "opt out" of any future rate increases

[Deleted User]

Close the cards and continue to pay back under the terms (ie as much as you can monthly). At least that way, you won't increase your balance.

You won't get a consolidation loan because you're not employed. Nothing to do with a 75k cut off. And it would be unlikely to be a good idea if you could.

Make sure you pay the minimum of both, but throw any spare money to the one with the highest rate.

Twister84

With Natwest, you cancel the card and continue to pay as normal.

Elric

rang barclaycard today to cancel the card - at first they were going on about me having to pay the interest if I cancel the card. I said that's fine as long as you can give me a fixed figure and my card is cancelled, that way I can make an impact on the balance without being temped to use the card (going round in circles)

I was passed on to what I assume was the retention dept - explained my circumstances, why i wanted to cancel and so on. They went on about a reduced interest for loyal customers but I insisted they cancel the card -
- then as a last resort they gave me £50 as "a token of appreciation of my financial problems" !! - Ok...

After getting reassurances there were no conditions attached I agreed to the £50 and told them I would cancel next month anyway. They said fine and no doubt relying on me to forget and carry on using the card

They said: "we see yo as a valued customer" - they just like customers like me who have the limit up to the max but keep up the monthly payments...

ah well, I've got £50 knocked off

I'll put a reminder on my phone and cancel in 2 weeks

Cheers for replies, sorry I didn't get back sooner !

Tixy

Can you afford the minimum payments on both your cards on just benefit income (and after paying priority items). If you cannot then work out what you can realistically afford and then you could either contact a debt charity for help or write to your creditors direct to ask them to accept reduced payments and to freeze interest.

Paying less than the minimum payments will badly affect your credit file but if you cannot afford the full payments then its something to consider. They don't have to agree to freeze interest but most cards will if they can see you are paying all you can afford. However if you take this option you would need to move your main current account away from natwest and have your income paid into the new account (otherwise they will just offset funds from your main bank to pay off your card).

CLAPTON

well done on getting 50 knocked off but I don't really see how all this helps you

you seem simply to be asking the bank to do exactly what you can do for yourself; i.e. stop using the card and pay the minimum monthly payment.

shiny76

Elric wrote: »

I'll put a reminder on my phone and cancel in 2 weeks

Cheers for replies, sorry I didn't get back sooner !

As previously advised, just take a pair of scissors to your Barclaycard and throw the pieces in the bin.

lizzielondon

Does cancelling your card when a balance is still due affect your credit rating?

[Deleted User]

No.

Edit - answer too short - so

No. No, it doesn't.

McKneff

You dont need a reminder to cancel the card, why do you feel the need to cancel it.

JUST CUT IT UP...................

but before you do make sure there is no dormancy fee involved. AMEX do this.