Credit Card Nightmare - HELP!!!!!

Tassy

Ok - my position is that I have 2 credit card debts £20k on MBNA & £8k on Barclaycard -Massive amounts I know!

The debts were mainly incurred over the past 10 mths through lots of work expenses and travelling overseas for work purposes. The company I worked for went bust and I'm left to deal with the debt!

That aside (I'm exhausted from the battle with them to try and recover monies I'm owed), I need to sort out a payment plan with both credit card providers as I can't meet the minimum payments currently. Am working as a freelancer at the moment so my income varies.

I'm fortunate that my income is likely to be good over the next few yrs so whilst the debt is large it should be manageable for me to service,

What is my best approach with the 2 providers to arrange a breathing space for perhaps 6 mths where I still make a payment but below the minimum payment, until I get my freelance income sorted?

Advice really welcome and also not sure if Ive posted this in the relevant place - so if not I apologise, and again would be happy accept your guidance.

Thanks

Tixy

Contact the providers, explain the financial difficulties but that you expect it will only be for a 6month period.

Depending on how much you can afford they may well agree to reduced payments for that amount of time and to mark your credit file with an arrangement to pay marker. (If you can only afford token payments then they will probably not agree to a short term plan and will instead issue a default.)
They may ask you to provide them with an income & expenditure account to demonstrate you cannot afford full payments and are offering all you can reasonably afford - you don't have to supply that info, but then they don't have to agree to the reduced payments.

If they do agree to a 6month reduced payment plan and you then are not in a positon to increase then they would be likely to issue a default at that time.

Tassy

Thanks very much - want to minimise damage to my credit rating, so valuable advice