Credit Card Default notice help

TerryPalmer

Morning,

I have a credit card through Thomas Cook (underwriters barclaycard) I have for one reason or another fell behind on payments and yesterday I received confirmation of a default being put on my credit file as well as the threat of debt collectors being sent to my home.

I am struggling financially (some household bills have also been missed) and could really do with some advice. I have an outstanding balance of £1100 with them but can't afford to pay back much more than £50 a month. I'm really worried to call them to offer this payment as I wont be able to pay it until I get paid (Next thursday).

Any advice? Anyone been in a similar situation?

I need help how I can get out of this situation.

Thanks in advance

bigadaj

You need to contact them, not speaking to them just makes things worse.

Explain your situation and state how much you can afford, though they'll want some justification. It's a good idea to do a statement of affairs, soa for short, detailing all your incomings and outgoings. There's a template on the debt fee wannabe board and if you post details on there helpful people will suggest areas on which you can save or get a better deal.

The credit card debt isn't huge in isolation, if you can pay £50 per month then you could potentially have it cleared in 2 years even at normal interst rates.

With other bills going unpaid it sounds as though you may have wider problems, in which case you need to prioritise your spending. Credit cards would be relatively low on that list, the top of the list will be food, rent or mortgage, council tax etc.

Might well be worth you contacting on elf the debt charities who can also help, stepchangea and payplan are the two main ones.

Good luck and post back with any queries though Dfw board might be more appropriate in terms of advice.

grumbler

TerryPalmer wrote: »

... I have an outstanding balance of £1100 with them but can't afford to pay back much more than £50 a month.

And the APR and the minimum payment are.... ??

Ignoring the default charges, typical minimum payment for Barclaycard is interest +1%.
According to my calculations, for £1100 balance £50 has to cover APR up to 52%