contacting credit card company

fleur

I've got a card with granite, due to a dramatic change in family circumstances I will soon find it difficult to make the payments. I've been told that credit cards are classed as the least important when it comes to paying off debts.
I've always paid my way, how do I got about contacting the company to request the card be cancelled, any interest stopped and for me to pay off a set sensible amount. I owe just under £1900 and could only afford to pay £20 a month, once my circumstances change.

JakeGreen

So you're saying you won't be able to make the minimum monthly payment?

Do you know how long you'll be low on cash for?

What's your credit limit and what is the minimum payment each month?

How do you rate your credit history? Have you ever missed any payments or made any late payments in the last 6 years?

YorkshireBoy

I think they'll want to see some evidence of your inability to make the minimum payments, ie some late/missed payments, before they'll agree to put you on a payment plan.

Certainly I don't think they freeze the interest, ie don't charge any more to the account, until things have progressed somewhat.

Are you on their 3.5%, 4.5%, or 5% minimum payment?

The answers to Jake's questions 2 & 3 above will determine the best course of action, ie if the "dramatic change" is short term it might even be an option to make cash withdrawals to get some cash to pay them back! Robbing Peter to pay Paul is rarely a good idea, but if we're talking 2-3 months and you've enough available credit it could be an option?

JakeGreen

YorkshireBoy wrote: »

if the "dramatic change" is short term it might even be an option to make cash withdrawals to get some cash to pay them back! Robbing Peter to pay Paul is rarely a good idea, but if we're talking 2-3 months and you've enough available credit it could be an option?

Yep, I was going to suggest robbing Peter to pay Paul, as that is what I would do if I was extremely low on cash for a short period of time but... only if you know you'll get some money eventually.

I was in this situation myself six months ago after I took 3 months off from work to refurbish my house and ended up spending much more than planned (totally self inflicted though!) I ended up making cash withdrawals on the credit card.

It costs you more in interest and can have a short term negative effect on your credit profile due to the cash advances.

But the long term negative effect of a late or missed payment is far greater.

Only worth it if you know you'll get some money eventually.

JakeGreen

Also, if you feel you have a good credit profile. It might be worth trying to transfer the balance (or as much of it as possible) to a 0% balance transfer card.

This will only buy you time though (up to 26 months is possible I think) you'll have to pay it back eventually... or transfer it again when the time is up.

DCFC79

Would have thought it will be a case of writing to them stating you said in your post.

dalesrider

fleur wrote: »

I've always paid my way, how do I got about contacting the company to request the card be cancelled, any interest stopped and for me to pay off a set sensible amount. I owe just under £1900 and could only afford to pay £20 a month, once my circumstances change.

Ring them is by far the best way and explain your position to them.

Personally I would not do it till you are in a position that you cannot make the next payment.
Too early and they may up the interest rate in the mean time and stop card usage.

You will have to fill in a form with income/outgoings. They will then look at this and make a decision of what they feel you can afford.

End of the day, these co's want their money back. So will work with you to come to some agreement.