Interest out of control !

135K

Hi again everyone.

I have 135k on cards and loans.

I was managing very well doing the shuffle unitl..

a few of my card lenders have slashed my credit limit to just above my balance.

Now I cant shuffle - and the interest is gonna kill me.

Debt avice line suggested contacting the credit card company's and asking them to freeze the interest whilst I try to pay the balances.

are there any snags to this ? obviously it flags up on my credit report that I am struggling .

how would I go about approaching the card companies ? how would I word any letters ?

anyone else done this ?

I have enough assets (classic cars) to cover alot of the debt, but the cash is not 'liquid' at the moment, I am getting a car ready for sale - advertising it, selling it, and starting the next one, but the time it takes means I am just about covering the interest.

So in a years time, I might have survived, paying all the min payments, but then I wont have any assets left - so I guess it means going bust

If I could freeze my interest, I could probable pull myself out of this hole I have dug for myself, and recover without having to sell the house.


Please help

Gemmzie

Hi

Creditors don't have to freeze interest and unless it is for a particular short term reason then they aren't likely to do so without entering into a Debt Management Plan (DMP).

If you post up a statement of accounts (SOA) all the incomings, outgoings and debts with their APRs, then we can see if that would be a suitable option for you.

hypno06

Hi there, two things I would do are:

- have a read of Southernscousers sticky just above and prepare an SOA, which you can then post on here - the great and the good of the DFW community will then come up with ways to help in the short and the longer term.

- because it looks as though you could get out of this if you had interest frozen, have a word with cccs, or go online to www.cccs.co.uk and do their "debt remedy" thingy online. This will tell you how long it would take to get debt free, and if you choose to go down this route they will communicate with your creditors and try and get interest and charges frozen. The important thing here is that CCCS do not make any charge - they are a charity, so all money paid, will go straight off your debts, not lining someone else's pockets.

If you do go down this route (DMP) it will trash your credit rating because you will have defaults shown on your file. However, many many people on this site are on DMPs and have been able to get good mortgage deals while on their DMP, so all is not lost for you.

Robflh

Hi 135K

Please use the thread you originally started. It has information that people reading this thread will ask for.

In case your have lost it click on the link bellow. Then re do this post on your old thread.

http://forums.moneysavingexpert.com/showthread.html?t=480684

Anyone else that reads this thread will then go to the old one.