How to repay huge credit card debt

nannoo1955

Bogalot, he needs to find a way stop the interest on the card. If he can only pay, say, £20 a month, he will never, ever pay this off if he is being charged interest.

A4445

He may be able to get a DRO but he needs to get advice from a Debt Charity. It is a form of insolvency and will damage his credit report for 6 years, and he may be asked to declare after the 6 years if asked on any application forms.

ydoxy

I think you need to call bank for the repayment your loan amount. you also pay your dues with monthly installment with interest..

Superscrooge

nannoo1955 wrote: »

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.

Contact the lender. Some credit card providers will reduce the interest rate when borrowers are in financial difficulty.

Whilst at present half the payments are paying the interest. As the debt reduces so does the interest. So each month a higher percentage of the payment goes towards paying the debt.

nannoo1955

For sure, Superscrooge, but even if he could continue paying the £250 a month he is paying now, it would be around 2022 before it's paid off!!!

agrinnall

nannoo1955 wrote: »

For sure, Superscrooge, but even if he could continue paying the £250 a month he is paying now, it would be around 2022 before it's paid off!!!

So is that an issue? 5 years to pay off a £12,000 debt doesn't seem too far out of the ordinary.

nannoo1955

agrinnall wrote: »

So is that an issue? 5 years to pay off a £12,000 debt doesn't seem too far out of the ordinary.

I thought I was clear when I said that each payment puts him in arrears. By that I mean that we have pared down his outgoings to the minimum, and what is left is nowhere near enough to make the minimum payment to the credit card every month - he cannot make the payments. And I was making the point that even if he could, it would take 5 years - it was a moot point.

A4445

I think this post is on the wrong board, you may get more helpful suggestions if it's posted the the debt free wannabe board

Dobbibill

nannoo1955 wrote: »

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.

It's a good thing that you have sat down with him and reduced his outgoings.

Please make sure he puts an EF in place because once he starts to pay off the CC with interest frozen and an arrangement in place, he isn't going to be able to get credit (a good thing really), so if this type of thing happens again, he will need a contingency plan.