Reduced monthly payments agreement effect.

cinderellaumberella

Hi,

Basically my credit score is mediocre. My ex has left me with several different debts and I've not missed payments so far but the minimum payments are really making months a struggle.
What I would like to know is, I was thinking of contacting the credit card company who and explaining I'd like the card freezing and agree a lower amount each month. I would also like to do this with a catalogue.

As I said I am good stead with both companies, in limit and no missed payments, any ideas how this would show on a credit file?
Please help I'm feeling a little overwhelmed.

CLAPTON

It would probably show as an arrangement to pay (if they agreed) which would adversely affect your credit worthiness for the next 6 years

Malmo

cinderellaumberella wrote: »

Hi,

Basically my credit score is mediocre. My ex has left me with several different debts and I've not missed payments so far but the minimum payments are really making months a struggle.
What I would like to know is, I was thinking of contacting the credit card company who and explaining I'd like the card freezing and agree a lower amount each month. I would also like to do this with a catalogue.

As I said I am good stead with both companies, in limit and no missed payments, any ideas how this would show on a credit file?
Please help I'm feeling a little overwhelmed.

If the lender agrees a change in terms with you, then this will result in an Arrangement to Pay marker (usually indicated by the codes "AP" or "AR") being applied to each month that the changed terms are in force. I'd be very careful about doing this as the impact of such markers will be adverse and will affect your future ability to obtain credit. Read section 3 of this document that describes the Information Commissioner's Office principles on such arrangements.

shep214

Be careful mbna agreed to 6 months reduced payments with them 2 years ago.I came to remortgage at the start of January checked my credit file and discovered they had placed 6 late payment markers on my file one for each of my reduced payments,needless to say this is making remortgaging difficult. All i will say is be careful