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Credit rating v. reducing monthly repayments with CC companies

Apologies if this question has been asked but I didn't quite know how to search for it specifically. I have been seriously ill with cancer for last two years and am finally in remission. I have struggled during this time to keep up my minimum payments on my credit cards (now standing at just under £23K) by making monthly payments as balance transfers on to new 0% cards, transferring balances to new cards and back again from month to month, thereby avoiding making the monthly payment, etc. I am still employed on a reduced salary and get incapacity benefit (taxed) and if I pay for all my regular commitments including my credit care repayments (of just over £500) in one month, I have nothing left for food, petrol, utility bills, going out.

If I contact the CCs with whom I have the largest oustandings and am able to negotiate with them lower monthly repayments, will this adversely affect my credit rating? I have a number of credit cards of which 5 are active and have outstanding balances.

Many thanks for any replies.

Virginia

Comments

  • Debt_Free_Chick
    Debt_Free_Chick Posts: 13,276 Forumite
    10,000 Posts Combo Breaker
    Yes - any arrangement you make with your creditors is likely to show up on your credit file. But would this really bother you? Sounds like more debt is the last thing you need at the moment.

    As you suggest, you should prioritise your outgoings e.g. mortgage/rent & Council Tax come first. Then utility bills & food. Your creditors come last and just get a pro-rata share of anything you have leftover.

    If you download this pack and follow it, it takes you through the whole process

    http://www.nationaldebtline.co.uk/england_factsheets/debt_advice_england_wales.php3#3
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • Many thanks for this advice. I will go to the link you suggest.

    VirginiaC
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