cant afford repayments - best option ?

JimTracy

Im in a situation where im struggling to cover my credit card costs.
However, id really like to pay back in full what Ive borrowed. Is writing to the CC companies the best way to go and asking them to freeze interest and let me pay small amounts until balance is clear ?
Will they go for it ?
If they do I expect this would ruin my credit rating but Im prepared to take that if its the case I can get the interest frozen and pay it back in small amounts over 3 years or so.
Thanks for any help !

datlex

You have nothing to lose by asking. When I struggled in past I spoke to companies. It is when you don't and ignore the issue they get uncooperative.

Deep_In_Debt

Yes, ask them! National Debtline website has a good template letter you can use for this purpose and you'll also need to send and I&E so that they can see they are getting all you can afford. They might only freeze interest initially for 6 months but that will help and then you can write to them again.

It will affect your credit file as you are basically breaking your agreement with them by paying less than the agreed minimum payments but if you are prepared for that then go for it!

Good luck.

LittleMissDetermined

From their point of view it's better that you keep paying even at a small amount with frozen or reduced interest than for you not to pay at all... I think they will be able to work something out and you have nothing to lose in asking.

Good luck and I hope you get something sorted x

National_Debtline

Hello there.

Your creditors will consider allowing you to make a lower payment and to also freeze interest and charges should you submit a fair and reasonable financial statement to them. If you have *some* money to offer your creditors you should look to make 'pro-rata' offers where the larger debts would get a greater share of the spare money than the smaller creditors. There are various ways to approach your creditors - and writing to them is certainly one of them! We've some sample letters at the back of our 'Dealing with your debts' magazine, you can download it here:

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#4

We also have an interactive Money Advice system which guides you through a personal budget and recomends the best option for you; here's a link: https://www.mymoneysteps.org

The other debt charities and the CAB also have similar tools.

All the best in your journey!

David @ National Debtline.