118 settlement amount / credit card

tearsandrain

Hi everybody,

I hope that it is ok to post here and you will forgive this post I am very nervous.

To give some background I have had some major problems with my mental health which I think partly contributed to me making some really bad decisions especially around money management. About a year ago I decided I wanted to take charge of my finances (this was before I realised how badly my mental health was affecting me and my cognitive skills) and signed up for a consolidation loan with 118 as a result I am paying a super high interest rate. Not the best decision I have ever made.

I originally borrowed £2000 which equals £1695.52 in interest and a total of £3695.52 owed. I have since paid back £2001.74 and have not missed any payments.

As I mentioned earlier I have had some problems with my mental health and as a result have under gone a change in my employment which is better for my health but not my bank balance. As a result after February I can no longer afford to make the full payments of the loan to 118.

Sorry I am waffling I will just get to the point - I have a credit card which I don’t owe anything on and was wondering if I could pay the settlement fee on that and finish repaying the loan to the Credit Card company. Assuming the settlement amount is around £1140 for the rest of the loan repayment and two months interest - I haven’t contacted them yet as wanted to post on here first.

I have worked out I can finish paying for it in 11 months or 15 months if I need to give myself some space. I hope that this is an option as I am really worried about going bankrupt and bailiffs knocking at my door.

I have done a Statement of Affairs and know that I can easily afford triple the minimum credit card payment. More on certain months.

I would be appreciative if anyone can point out anything I have missed. I am worried about jumping head first again and making another bad money decision.

I would appreciate any help anyone can offer me about talking to 118 about a settlement amount.

Thank you in advance for any advice you can give me.

Tears xx

[Deleted User]

It's highly unlikely 118 will accept a credit card payment. You'll need a money transfer option, but they are hard to come by with a good credit history and also gave associated fees.

In terms of the settlement figure, that will be the remaining capital plus 58 days interest.

Better to post on the DFW boards for advice on cutting your costs to repay faster.