5 credit cards maxed... Should I default on some or all?

Musicjazz

Hi.

Wondering if someone can help...

I have posted another thread in here re: my debt situation, but wondered if I've come up with an interesting strategy to deal with it...

Any thoughts/advice welcome...

I currently have 5 credit cards, most of which are maxed out, but one with £200 left on it. All of the cards are charging their flat interest charges each month as the 0% offers have expired... apart from one...

I have made successful minimum payments to all cards every month so far and obviously no defaults...

I now found myself in the situation (due to a drop in income), of being unable to maintain minimum payments this month for the cards.

My question is this... If I am to default on my credit cards this month, is it worth defaulting on all and seeking DMP/trust deed/bankcruptcy advice, or what about this idea for getting out of the mess...

What if I stop paying, and default on all but say 1 or 2 of the cards (one of which is still 0% until december), and continue paying minimum, plus as much as I can, to the remaining 1 or 2 cards.

Once I have paid off the 2 cards I haven't defaulted on, are they still likely to offer me any 0% offer deals on balance transfers? (both cards I'm thinking of doing this with are platinum, and offer the best deals certainly when I was a new customer anyway)

Is this likely if I have defaulted on the other cards? (do they reassess current customers credit report before offering these deals?)

The reason I ask, is that I could then use that balance transfer offer to reduced the debt on the other defaulted cards, and start paying it off again... and so the circle continues until all debts are paid...(and with less interest)

Does anyone know if such a thing is possible, or have successfully done so themselves?

Many thanks in advance...

ineed

Hi, unfortunately if you default on some of your other cards it will show on your credit report and damage your prospects of getting any more 0% deals.

If your going to do it best do it now rather than later.
Contact CCC http://www.cccs.co.uk/ or pay plan https://www.payplan.com and let them help you. They will go over your finances and recommend the best course of action.

You'll probably get more advice on managing your money here if you post up an SOA. Good luck with whatever you decide.

Sharon87

Agree above. But I'd also still make minimum payment on your 0% card, because if you miss payments the 0% deal will end, and you'll end up accruing interest until you can get a DMP sorted and accepted.

Musicjazz

Hi.

Thanks for the input...

However, I'm not talking about getting a brand new card with 0% deal (I know I couldn't do this, as I will have defaulted on 3 of the 5 cards.)

I just wondered if I keep two cards in order, and ignored the rest, after I paid the 2 off, is it possible to be offered existing customer 0% deals on the 2 paid off cards? (they would have perfect account history, although my credit report would show a default on the other 3 cards not paid off)

Any one have any experience of this?

Thanks.

pure_dead_dopey

basically one default does as much damage as 20, so no point in straining yourself to keep paying any of them.
If you can't afford them, drop to one pound tokens and concentrate on your priority debts.

[Deleted User]

Unfortunately once you miss payments on these cards you won't get any new offers, you are likely to have your credit limits slashed on all cards and the current providers will probably increase your APR. They will probably explain this as "We have recently reviewed your credit score and feel that as a responsible lender that your credit account be reduced".

Don't forget these people don't just score you once, they are always aware of how you manage accounts.

For example, I started a payment arrangements with Halifax. They then slashed my credit limits, closed another account and my Santander credit card limit was also reduced.

I then applied for a Bad Credit Card because there was a small offer that could benefit me, I even got declined for this due to the situation.