Help with Aqua Credit Card debt - shall I go on replayment plan?

roxygrey

Dear moneysavingexpert,


I have got a £3000 debt on an Aqua credit card at 50% APR. This month, the minimum payment is £120 and the interest is £98. The reason the debt is there is largely because I have not been paid back money owed by a relative. We have fallen out over a lot of things and I have been very ill with stress about it. Trust me, I have not just built up this debt willy-nilly and now panicked.


So far, I have never missed a payment on this credit card (which I have had for a few years and, apart from past year, used to my advantage, so no big interest charges) and everything on my report is green with regards to this card. However, my income will be tight for the next few months at least due to being too ill to work. I went to the CAB and told asked them what options I might have as someone who could back up a health problem with evidence. However, and this is important, I told them I ABSOLUTELY WANTED TO PRESRVE MY CREDIT RATING. They advised I call Aqua and then, if I wasn't happy with what they offered, go back to CAB.


Aqua have offered me two options,


Option 1 - freeze all interest. Freeze account so can't use card. Pay back £30 a month as part of repayment plan. Once I'm better, go back to original agreement and can use card again. HOWEVER, they said this repayment plan would be reported to credit agencies and be on my file and, even more worryingly, they said my debt could be sold to a third party debt collecting company at any time whilst I'm on my repayment plan. What do you think? Even if there was no chance of Aqua selling to a third party company, then is this a good option? Will a temporary repayment plan on my credit file be really bad?


Option 2 - I send in medical evidence. If Aqua agree that I have a bad condition, then they pass my account to their 'customer care team'. They freeze account. They freeze all interest. The customer care team will work with me to put a payment arrangement in place. Under this option, they said they would keep my account 'in house' and not sell to a third party. When better, I will go back to original agreement. On my credit file, they said it will just say I have a 'block' on my account. This seems a better option, particularly as there is apparently a guarantee that they won't sell to third party.


What do you think? If I go on any of these arrangements, is it just going to screw my credit record for years? Would you just try and make minimum payment? Please tell me what you think.

[Deleted User]

roxygrey wrote: »

I told them I ABSOLUTELY WANTED TO PRESRVE MY CREDIT RATING.

You only have one safe option - keep making minimum payments.

Dandytf

Not convinced you would immediately be returned to original use after either option.
Aqua will hold the right to reduce your limit or cancel the card if you are failing to make minimum payments regardless of the reason you offer.
I speak from experience-these companies are not slow at taking action where customers cannot make the required payments.
Hope you choose wisely -it is a considerable min payment maybe in the long run agreeing one of thos options might be best -don’t concentrate on your credit rating -you are required to take more serious decision in attempting to make min payments or agree 1 of 2 options.
Next is post a SOA via debt board to check if you’ll ever be able to afford min payments-though it’s going to be a few years to clear.

Samsung_Note2

Is a balance transfer card not an option...whilst Aqua suggesting poor credit history,if youve been paying each month then credit file might be ok ish.

I know when i applied for Balance transfer card i was shocked that i got a Tesco card...Double shocked when same week got Barclay card transfer card and passed out when see the limit at £3500.

Point is my credit file i assumed was terrible...turns out it was worth taking a chance and applying.