Credit card payment help

Ladyluck1

Could I in theory not pay my credit card this month? For one month ONLY?
I literally can not afford to pay it and if I do I will default on council tax which is a priority debt? Also I'll go over my overdraft and get charged and be in a viscous circle...
Argh.
We are doing everything we can to reduce our outgoings at the moment and I just can't cope anymore!
Stressed and very pregnant

soontobemrsg

Could you not pay the minimum on the cc and use the cc to pay your council tax for this month only?

Ladyluck1

No credit left and my minimum is quite high

soontobemrsg

I certainly wouldn't just not pay - contact them and change the payment/statement date - should buy you some time.

Fosterdog

Do you pay your council tax over 10 or 12 months? If it's over 10 call them to see if you can change it, your payments each month will be lower and it makes it easier to budget and spread the money over more debts. The only downside is that you don't get two months CT free in march and April (or is it February and March?)

Even if you can't make the minimum payment you need to pay something and let them know you're struggling. If you've been with the bank for a long time and have been a good customer they may agree to lover your minimum permanently.

Are you on an interest free credit card? You could lose your interest free period if you don't pay so it could cost you a lot more in the long run.

Could you get a 0% balance transfer onto a new credit card to make things easier?

Ladyluck1

I think we pay over 10 months but it never seems to work out like that as we rent and have recently moved house...
I might call them and ask
I'm going to ring and see if they will take a lower payment but I've defaulted a few times in the last couple Of years so not sure how leanient they will be.
My credit is shot. Don't think I'll get accepted for another credit card!

nicp60

Hi LL,
It doesn't matter what they think or how lenient they are - they cannot take what you haven't got, and they will have to wait!

I would send a £1 token payment with a short explanatory letter which just says you're having temporary problems and you will resume payments next month.

If they don't 'accept' it, then you have proof that you have tried to pay them.

At the end of the day, Council Tax is a priority debt and absolutely must be paid, no matter what. The credit card companies can wait a month for their payment if things are that tight.

Try not to worry about it - I'd avoid calling them, unless you think they're going to be understanding.

Tixy

Hi

Is this problem really just a 1 month problem? Will you realistically be able to afford everything next month?

If its not just an issue this month then I would seriously consider speaking to one of the debt advice charities for some advice and if you are going to do that then you can send your credit card company a letter to say you are seeking advice and they should then take no action for a month. Example letter here http://forums.moneysavingexpert.com/showpost.php?p=21937969&postcount=52

If it is just a 1 month problem then I would make do as nic suggests a £1 payment (or whatever you can afford) and a letter explaining you have a short term problem and will be able to make the payment next month.

iancrt

Even if you think it is just a 1 month problem, I would do as Tixy suggests first on the Credit card and any other unsecured debt (unless there is an account you want to try keep clean)

You are obviously stressed so get the breathing space first so you can think, prepare and plan properly. Promising payment the next month then not making it is worse than promising £1 and paying the payment. Do keep them informed though.

Ladyluck1

Thank you all!
It's only really a problem this month as our income has dropped and we have only just cancelled all non essential things so I've had to pay for a lot of them still the past week.
So next month will be a lot better.
If I call them and tell them the situation and that we've already had advice (cab) would it be as effective as a letter? As my payment is due the next couple of days.

Puzzcat

Hi,

Just to note that they may charge a double minimum payment next month so bear this in mind..

Puzz. x