Temporarily stop credit card payments

marky0077

Hello,

I'm 43 years old and in September I will be quitting my job to go back to university to train as a primary school teacher. I'm slightly worried about financing September to July.

I have £16,000 on 3 different credit cards that I am trying to chip away at. Does anyone know what my chances are of stopping my payments whilst I'm at University?

Is this possible or is it not a viable reason?

Thanks
Mark

grumbler

It's certainly not a valid reason, but no harm done if you ask the CC provider*.

Generally, the only way to cut the payments is to default and negotiate a payment plan thus ruining your credit history.

*except that they can cut the limit to the current balance preventing further spending.

Candyapple

Is there anything stopping you from having a part-time job alongside your studies like millions of other students?

Did you not plan ahead as to how you will survive/pay your bills whilst studying for the next 3 years before you decided to take that step?

I can't see any lender saying to you 'Sure that's fine, we'll accept no payments from you for the next 9 months and hey, we'll even freeze the interest for you if you like!' All that will happen is if you stop paying, your accounts will end up with late payments, eventually turn into defaults and possibly CCJs later depending on the amounts, your credit history ruined for 6 years thereafter and endless amounts of calls/letters from debt collectors.

chattychappy

Certainly not a valid reason. Also, if you call the CCs and talk to them you risk have the CCs blocked so you can't use them any more.

Have you worked out your budget for when you study... do you know how much you will need?

One option (though many here won't like it) is to apply for more credit now, whilst you still have an income. Get a 0% purchase card. Get a 0% BT card and shift any interest bearing balances. I financed 2 years further study in my late 30s this way. I forecast my minimum payments through the two years, and did a money transfer on a 0% BT card into a savings account to cover the minimums for the period I wouldn't have an income. That way, I could keep the plates spinning.

In the event, I got a part time job before I finished my course, so never needed the money I put into the savings account. Apart from BT fees, I paid no interest at all and it was by far the cheapest way to finance my studies. The college took payment for the fees on my 0% purchase card (they charged 1.7% extra). From that, I got enough pizza express vouchers (it was a Tesco card, I think) to see me through the first term!

The key thing is to have a very good handle on what you will be spending.

agrinnall

Giving up your job while £16,000 in debt seems a perverse thing to do, why don't you work a year or two longer and concentrate on getting the debt repaid before taking on the next lot?

Candyapple

chattychappy wrote: »

Certainly not a valid reason. Also, if you call the CCs and talk to them you risk have the CCs blocked so you can't use them any more.

Have you worked out your budget for when you study... do you know how much you will need?

One option (though many here won't like it) is to apply for more credit now, whilst you still have an income. Get a 0% purchase card. Get a 0% BT card and shift any interest bearing balances. I financed 2 years further study in my late 30s this way. I forecast my minimum payments through the two years, and did a money transfer on a 0% BT card into a savings account to cover the minimums for the period I wouldn't have an income. That way, I could keep the plates spinning.

In the event, I got a part time job before I finished my course, so never needed the money I put into the savings account. Apart from BT fees, I paid no interest at all and it was by far the cheapest way to finance my studies. The college took payment for the fees on my 0% purchase card (they charged 1.7% extra). From that, I got enough pizza express vouchers (it was a Tesco card, I think) to see me through the first term!

The key thing is to have a very good handle on what you will be spending.

I highly doubt the OP will be able to obtain any further credit especially given that he is £16k in debt already. Not unless he is earning a high salary and given that he is going back to uni to retrain presumably for a better job/career, I would hazard a guess at no.

Also, in the OP he talks about stopping payments altogether for 9 months on his current cards, so assuming he managed to lie and obtain a card(s) how would he finance the minimum repayments each month?

CLAPTON

marky0077 wrote: »

Hello,

I'm 43 years old and in September I will be quitting my job to go back to university to train as a primary school teacher. I'm slightly worried about financing September to July.

I have £16,000 on 3 different credit cards that I am trying to chip away at. Does anyone know what my chances are of stopping my payments whilst I'm at University?

Is this possible or is it not a viable reason?

Thanks
Mark

you don't say what your circumstances are
married? with mortgage etc
but be aware that if you stop paying, it will trash your credit record for 6 years and trash the credit file of anyone with a financial association with you (say a joint mortgage holder)

presumably you have already stopped all non-essential spending (meals out, holidays, clothes etc) : worth going over to the debt free wannabe board and post up details of your income and spending and see what ideas you can pick up from there

grumbler

agrinnall wrote: »

Giving up your job while £16,000 in debt seems a perverse thing to do,

It doesn't if the debt is a result of the current low salary incapable of covering basic expenses.

agrinnall

grumbler wrote: »

It doesn't if the debt is a result of the current low salary incapable of covering basic expenses.

You could be right, but at some point the salary must have been high enough to warrant being issued with cards with high enough credit limits to run up a £16K debt.

andyfromotley

Hi Marky,

as others have said thats not going to happen. obviously the CC companies are interested in your payments being maintained rather than supporting your career development. I am assuming that you are doing a one year course.

So you are going to have to formulate another plan. Some options for you to consider,

1. Just dont pay. (not recommended) It will trash your credit history and add stress to your time at uni.
2. Start piling up cash now, as much as you can to put towards your payments whilst you are at uni. assumin that your monthly repayment is in the £250 range? then you are going to need about £3k set aside for this.
3. Get a job which pulls in the same as your min payment.
4. Sell stuff that you own to cover the payments.
5. Put study off until you have reduced the debt.

This is of course the hidden hand of debt at play. Debt gives people obligations which then restricts thier freedom to do what they wish. This is why i cant wait to debt free.

Superscrooge

chattychappy wrote: »

One option (though many here won't like it) is to apply for more credit now, whilst you still have an income. Get a 0% purchase card. Get a 0% BT card and shift any interest bearing balances. .

Shifting your debt to 0% is clearly going to help you pay off the debt, if you can obtain a 0% balance transfer card.

Whatever you do. Don't just stop paying! Make minimum payments on all the cards and if you have spare cash overpay on the one with the highest interest rate.

If you do get into a situation where you know you can't make the minimum payments. Don't bury your head in the sand. Contact the card providers.

These boards are full of posts from people who have defaulted on debts and are frustrated because years afterwards they can't obtain any credit cards, loans, mortgages etc.