Need advice on negotiating debt with credit card companies

mapleleaf1010

I saw a money advisor from the citizen's advice bureau the other day because I've been made redundant and am finding it hard to pay my credit card bills.

The lady said they can write to the credit card companies on my behalf and suggest that I make a £1 token payment every week for a few months.

Although this arrangement would be very convenient for me, I'm concerned about its impact on my credit rate.

How do the credit card companies normally deal with such requests? Any advice pls?

Cheers

happy_bunny_2

If you tell them you are dealing with a debt charity, they should give you a month of fairly few letters and calls.

They will likely want an income and expenditure form.

They will mark your credit file as late payments of arrangement to pay. Neither great.

They will likely kick up a fuss, tell you the worlds going to end, but in reality, it's not a priority debt so tough luck...

What are your prospects of another job in the next few months?

Tixy

If you have no inome, or just benefit income then unsecured creditors are usually reasonally good at accepting token payments are all you can afford.

However if you make just token payments for more than around 3 months then each will very likely enter a default on your credit file (they could enter them even earlier than that).

Defaults stay on your credit file for 6years from the date entered and have a major impact on your ability to get mainstream credit.

National_Debtline

Hello there,

Here's some further information about credit referencing [please click here].

Token payments can be very effective at helping you through a difficult time. If it transpires that your situation is going to be more long-term, do consider seeking further advice as there could be alternative options open to you. As happy_bunny mentions, credit debts are nearly always regarded as 'non-priority' debts.

Very best wishes,

David @ National Debtline.

mapleleaf1010

Many thanks to all who replied.

I'm not sure about my prospects of another job within the next few months. However, I'd rather avoid the token payments for the moment, then review my situation.