Writing to Credit Card Companies

moneymoron1

Hello,

I have been thinking lately about contacting my credit card companies to discuss my debts, my credit cards are all on there limit and the interest payments are high.

I am wondering if anyone has been in a similar situation and contacted their credit providers regarding shifting all debt to one company, (increased credit limit but unable to spend on it) at a lower rate, therefore lowering my interest payments but also increasing the money one company makes from my debts, rather than paying multiple companies a higher amount?

I have a large amount of debt so applying for a new card isn't an option as it would be declined.

If anyone has any advice it would be greatly appreciated, I currently bank with Halifax, Santander, and Lloyds TSB.

I have credit cards with Barclaycard, Halifax, Capital One, Sainsburys Bank, ASDA Finance (Santander)

I also have overdrafts with Santander, Halifax and TSB

Thanks in advance for any help

moneymoron1

I imagine the logical way to sort my debts out would be a CVA, but I am convinced I can get through this without getting debt written off and it being paid by other people.

Also, I am very against the idea of wiping the slate clean and starting again with a destroyed credit file. I really want to do it the proper way, to man up and accept that it will take longer to pay off but it is the right way to do it in my opinion

stephane_2

I doubt very much any of your providers will want to do that unless your default on all your debt and trash your credit history for the next 6 years....why would they do you this favor?

SnowTiger

There's a template letter for that...

Dear Mr Credit Card Company

I have oodles of debt which I'm struggling to pay off.

Please increase my credit limit to £[x] so that I can transfer my unmanageable debt on four other credit cards to my [x] card. Please also lower the crippling interest rate you charge me.

Sorry to be the bearer of bad news at this joyous time of year, but you're not going to get what you want for Christmas.

What's a CVA? Did you mean IVA?

moneymoron1

That's basically what I am asking, I accept it is unlikely, but it is possibly a better option than them all getting nothing if I went IVA or Bankrupt.

I am in a good wage and I am currently making slightly above the minimum payments on all the cards so I am just about servicing it

moneymoron1

SnowTiger wrote: »

There's a template letter for that...



Sorry to be the bearer of bad news at this joyous time of year, but you're not going to get what you want for Christmas.

What's a CVA? Did you mean IVA?

Yes, IVA sorry

I know it is very unlikely but was just seeing if anyone had any experiences of it happening

bigadaj

Post a soa on the debt free wannabe board and people will have suggestions for savings. A consequence of this will then be a realisation of how much money you can have at best to pay down debt, and then how long it is likely to take to pay off. Logically then if the repayment is likely to take significant.y longer than six years then some form of iva or debt management may be advisable.

cos_2

moneymoron1 wrote: »

I imagine the logical way to sort my debts out would be a CVA, but I am convinced I can get through this without getting debt written off and it being paid by other people.

Kudos to you for this. We so often see people trying to duck out - it's refreshing to see someone being responsible whilst seeking help. Others have already given some guidance. Good luck

moneymoron1

cos wrote: »

Kudos to you for this. We so often see people trying to duck out - it's refreshing to see someone being responsible whilst seeking help. Others have already given some guidance. Good luck

Thank you, it is the right thing to do for my future, and for the companies I owe

moneymoron1

https://forums.moneysavingexpert.com/discussion/comment/57895883#Comment_57895883

SOA