How to repay huge credit card debt

nannoo1955

Happy New Year all. A question - my brother has maxed out on his credit card and now cannot pay it back. He has no other debts, but paying the monthly repayments is putting him in arrears. I only just found out and he is frantic. I phoned the National Debt Helpline, but they said he had to have at least two creditors before they could consider helping him write off part of the debt. Do you guys have any suggestions as to how the interest on this could be stopped and if possible if the debt could be written off (he was using the card for living expenses, nothing else), or if not at least the repayments reduced minus interest. Any help would be greatly appreciated.

[Deleted User]

He needs to speak to the lender and agree a repayment plan.

The debt's not going to just get written off.

MallyGirl

if he stops paying and defaults then conversations about payment plans and freezing interest can start, but this will affect his credit history for the next 6 years

MallyGirl

nannoo1955 wrote: »

Do you guys have any suggestions as to how the interest on this could be stopped and if possible if the debt could be written off (he was using the card for living expenses, nothing else), or if not at least the repayments reduced minus interest. Any help would be greatly appreciated.

why should his debt be written off - he spent the money

A4445

How much does he owe and what is the interest rate on the card?

Maximum_Saving

I think he could split the debts. Then with five different balance transfer credit cards he could use the snowball method of getting rid of the debt. He would put his efforts into paying the lowest debt and pay minimum payments on all of the other debts.

[Deleted User]

The OP says he's in arrears. He won't be getting one BT card, let along five.

Dobbibill

Good advice in #2 from zx81 - he has to speak to the lenders.

He will not be able to use the card if he has an arrangement and as said it will hit his CR for 6 yrs but that is irrelevant if he is falling further and further behind with his commitments every month.

It might be useful for him to fill out a SOA so he can see exactly where his money is going every month. Many people don't know where all their pay goes until they actually sit down and write it down.

nannoo1955

He could not get a job, and started using the card to buy food and pay bills, and it snowballed. He owes £12,000 on one card. I do not know the interest, but I guess it is whatever the going rate for a standard card. He currently pays around £250 a month, and needs to reduce this to the minimum, and obviously find a way to freeze the interest. At this stage he is aware that his credit rating will be in the toilet for a few years, but he has no intention of getting another credit card for the forseeable future.

nannoo1955

Dobbibill wrote: »

Good advice in #2 from zx81 - he has to speak to the lenders.

It might be useful for him to fill out a SOA so he can see exactly where his money is going every month. Many people don't know where all their pay goes until they actually sit down and write it down.

Dobbibill, I have done this with him, we have reduced his outgoings a lot, and found a way where he can make more income. Long term it looks better, but repaying a huge amount every month, of which at least half is interest, is impossible.

Bogalot

Is this the brother that owes you money also?

I suggest he (not you, it's his mess) posts a statement of affairs on the Debtfree Wannabe board and they'll help him optimise his budget so he can better manage his debts.