Credit Card Debts

Auva

Hello

I have been reading this message board for a while now and it would appear that we are in need of advice.

Background:

I have recently been made redundant from my company, where I have worked for 41 years. I have credit card debts with Barclays, on two accounts totaling £21000. Owing to my age of 61 and a bad hip, it is unlikely that I will find full-time employment. I am taking out a private pension worth approx. £8000 per year but this will not be enough to continue making the payments to Barclays. I have a lump sum of £15000, which I received as a redundancy payment, which I am prepared to use to pay off the debts but I do not know whether Barclays will consider this to be enough as a lump sum settlement.

Do you think that this amount would be acceptable, as they seemed unwilling to discuss the matter with me while I was working, and making the minimum payments? Will this change their attitude as I can no longer make the payments?


Many Thanks

Mozette

Sorry, I don't know the answer, but just bumping your post up.

Donedoingdebt

Firstly, do you have Payment Protection Insurance on either or both of the cards? I believe as long as you're signing on as unemployed, then these insurance policies should kick in regardless of how much redundancy you receive.

Auva

Donedoingdebt wrote: »

Firstly, do you have Payment Protection Insurance on either or both of the cards? I believe as long as you're signing on as unemployed, then these insurance policies should kick in regardless of how much redundancy you receive.

Thanks for the info. Unfortunately, these are relatively old debts; we didn't have the option of payment protection insurance. Just to add to the original post, we have contacted the CAB but they are particularly busy at the moment and we are awaiting an appointment.

HardleyLisa

Hi Auva - You could try ringing National Debtline or CCCS to see if they could offer you any advice while you are waiting for your appt with CAB. Sorry I can't help further.

itsarichmansworld

If you are struggling they should take a final settlement you may need to miss some payments to be eligble though

Auva

Hello Again

Thanks for all of your advice. Just got back from the CAB with little or no results. Because I have savings I have been advised to continue paying the minimum amount to the credit card company, also to write to them asking for them to freeze the interest payments. Have found out that if I offer a lump sum to both credit cards, I will not be able to claim means-tested benefits by virtue of the payment that I have made. Apparently this will be an unnecessary payment as it not linked to my property and therefore not a priority debt. Only priority debts must be paid. This seems to go against the advice on the message board that I should default payments to the credit cards. Surely I won't be offered a full and final settlement while I continue to pay the minimum payments?

Auva

Just to add:-

We have contacted the National Debt Helpline for some additional guidance on the matter. They were puzzled at the advice given to us by the CAB, as it appears they completely misinterpreted the information we gave them about our situation.