Dealing with credit card companies after losing my job

shevyshock_2

As the title suggests I have only yesterday been informed by my employer that they no longer have work for me. Due to these changes in circumstances I will no longer be able to meet the minimum payment on my credit cards. I've been working tirelessly the last 3 years slowly improving my credit in the hope of buying a house. I phoned my credit card provider to inform them of the change in circumstances and they done an income expenditure over the phone and calculated that the maximum I can afford is 13.57 a month. They also agreed to freeze any interest and charges which sounded good to me and would ease the pressure until I found work again. Until the end of the conversation when she went through her script and explained that because I will not be making the minimum payment each much they will be reporting my account as late.and.maybe and may still issue a default. Seeks a bit harsh when I'm not refusing to pay back my depts. Basically I would be no better of on my credit file by making these token payments until my circumstances change than I would if I just didn't pay anything at all. Does this sound normal? Is there anything else I can do to stop it from effecting my credit file because I worked hard to get it were it is. I've kept within my limit and made all payments on time for the last 15 monthes.

National_Debtline

Hi

I'm sorry to hear about your job situation. Unfortunately if you aren't able to meet the minimum contractual payments for a couple of months the creditor can show that on your credit file and add a default marker. Alternatively they can show an 'arrangement in place'. Either way it's showing that you're making reduced payments rather that complying with the contract.

A default would probably do more damage to your credit history than late payment markers and they could leave it up to 6 months before they add a default. Ask them to leave it as long as possible to default as you hope to find work as soon as possible.

James
@natdebtline

shevyshock_2

Great I definitely will ask them to put it of as late as possible. I definitely thought it was harsh tho because I'm not just ignoring my payments which would be the easiest thing to do. I feel at a loss now what a waste of all my effort has been improving my credit for so long for nothing