Can't afford credit card minimum payments

Legacy_user

I've got a credit card in about £3,500 debt. I'm in my early 20s on benefits unable to work. The minimum payment is usually about £150. I can't make this payment anymore.

I don't know whether to ask for a repayment plan or wait for debt collectors and deal with them. I really need the best advice on what to do. I know this is going to screw up my credit rating, but if anyone could help me with the best solution that will ruin my credit score the least amount, I'd seriously appreciate it. Thanks.

maxximus75

In my opinion I would speak with the credit card provider.

Explain the situation.

They should then get you to fill out an income and expenditure form to come to an arrangement to pay.

They will restrict usage of your account and usually eventually close it once repaid.

This should have a minimal effect on your credit history.

If you wait for debt collectors etc, you will end up having multiple late payment and possibly defaults of judgements against you which will ruin your credit history.

At the end of the day you need to do what is best for you and I wish you luck but letting your creditor know as early as possible when you are having financial difficulties is always the best thing to do.

Nebulous2

Contact one of the free debt advice charities, such as stepchange. Lenders vary in how helpful they are but they may well freeze the interest and accept a token payment. Get advice first though.

PeacefulWaters

Debt free Wannabe board will help you.
https://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=76

Post a statement of affairs and ask for advice on where to cut back.

Be proactive in approaching any company where you're struggling with payments. They might insist on waiting for you to underpay or not pay at all before they'll help. That's fine.

Have a look at what you own too. An eBay sale might see you through dark times without having to miss loan repayments.

Good luck.

DCFC79

northghosts wrote: »

I've got a credit card in about £3,500 debt. I'm in my early 20s on benefits unable to work. The minimum payment is usually about £150. I can't make this payment anymore.

I don't know whether to ask for a repayment plan or wait for debt collectors and deal with them. I really need the best advice on what to do. I know this is going to screw up my credit rating, but if anyone could help me with the best solution that will ruin my credit score the least amount, I'd seriously appreciate it. Thanks.

You credit score wont be ruined, well it will but only get to see it, lenders see your credit history.

How has it got to that amount ?

Got anything to sell to reduce the debt ?

[Deleted User]

Contact them and speak to them.

However, how has it gotten to this stage?

How are you on benefits unable to work?

How did you manage to get a card in the first place?

Dobbibill

Do you see being out of work as long term?

You are better to speak to the provider and explain.
It may be a short term arrangement if you are able to find work soon.

Weybridge78

Best to speak to the credit card provider. They will go through an income & expenditure with you. Hopefully, charges and interest will be frozen.

redpete

DCFC79 wrote: »

You credit score wont be ruined, well it will but only get to see it, lenders see your credit history.

And a potetntial lender will see the information that is reducing your credit score, so the shorthand way of asking will it affect the OP's chances of getting credit in the future is reasonable.