Credit Card Raising Minimum Payment

BLACKrose

I've got debts with 3 CC providers, I'm working to pay them off but it is not a quick fix. I was contacted back in September 2018 regarding increasing minimum payments as the creditors are addressing folks in persistent debt (me!) and working to 'help' them get out of debt quicker. The initial letters recommended increasing minimum payments and warned that in 18 month if the situation had not changed the accounts could be closed. I increased payment to one card, this is all I could afford, then Christmas hit, no worries I thought I can focus in the New Year on paying additional amounts on all three. I've now been contacted by 2 of the 3 CC's, I'm waiting now for the third to contact me all telling me they are raising my minimum payment from next month, that's £300 extra to find a month. Lloyds gives me the option of accepting the change or the account gets closed, Barclaycard want me to ring them but I'm sure there will be some clause if I don't increase the payment. I'm literally so stressed, where do I find all this extra money from? I can't just magic up £300+ a month to make additional payments! What happened to the 18 month period, here we are nearly six months later and the goals posts seem to have totally moved and I don't know how to get to grips with this or deal with it other than find the money from somewhere. Help or advice gratefully received.

[Deleted User]

If you can't afford the increased minimum payments, close the accounts.

You won't want to increase the balances in any case.

Nasqueron

A BT card even from a sub-prime lender like Aqua or Capital One might give you a bit of breathing room if you can get one, even to take off a load for 6 months at 0% to hit the other debt but only if you think you can clear it and that before the offer ends



Sorry to be blunt also, but you say "when Christmas hit" as if you spent loads of money there but are saying you can't afford these minimums?

System

OK, If your minimum payments have gone up an ADDITIONAL £300 a month. We can assume there is some pretty serious debt here. I think you are going to really have to tackle this head on now. No more borrowing for sure. Doing a statement of Affairs would be good before this gets any worse.

eskbanker

If the proposed increase in minimum payments is over £300 a month and this seems unattainable, then it sounds like you have a serious debt issue, in which case you could do a lot worse than posting a statement of affairs over on the debt-free wannabe board, where posters can review your finances and suggest areas to consider, which could potentially involve debt charities.

Ultimately there are only really four possibilities:

1. Refinance debt (if any 0% or lower interest options are available)
2. Earn more
3. Spend less
4. Default on some or all of your debts, with consequent trashing of your credit status.

Willing2Learn

Hi,

It appears as though you are living beyond your means. I suggest posting your SOA in the Debt-Free Wannabe board for advice on debt reduction and budgeting.

http://www.stoozing.com/calculator/soa.php

BLACKrose

Im in massive debt yes, live beyond my means definitely not I do my best in the situation, pay all I can monthly, and do not spend excessively, maybe £50 a month max . I’m stuck in the minimum payment cycle but this ramping up will be hard to manage, not impossible but hard.

boo_star

BLACKrose wrote: »

Im in massive debt yes, live beyond my means definitely not I do my best in the situation, pay all I can monthly, and do not spend excessively, maybe £50 a month max . I’m stuck in the minimum payment cycle but this ramping up will be hard to manage, not impossible but hard.

Let them close the account?

You clearly do have a persistent debt problem and keeping the accounts open only means you can keep running up debt.

Just let them close them and pay it off at the current rate if their proposals are not affordable.

A4445

BLACKrose wrote: »

Im in massive debt yes, live beyond my means definitely not I do my best in the situation, pay all I can monthly, and do not spend excessively, maybe £50 a month max . I’m stuck in the minimum payment cycle but this ramping up will be hard to manage, not impossible but hard.

I don’t think you will be left with much choice if you can’t pay the requested payments. I would give them a call and explain your situation and see how they can help you.

System

BLACKrose wrote: »

Im in massive debt yes, live beyond my means definitely not I do my best in the situation, pay all I can monthly, and do not spend excessively, maybe £50 a month max . I’m stuck in the minimum payment cycle but this ramping up will be hard to manage, not impossible but hard.

I'm sorry to be so blunt but being stuck in the minimum payment cycle is the very definition of living beyond your means. It means you have bought things on your credit card/s that you can't afford, i.e. living beyond your means. You are going to have to come to terms with the fact that this is more serious than you think. there is no quick fix for this. you are going to have to scale your spending way back and start throwing all the cash you can at the card with the highest interest. But you need to explain to your lenders whats happening perhaps they can freeze the minimum rise. but if they do, don't just keep doing what you are doing you need to clear the debt.

Willing2Learn

BLACKrose wrote: »

Im in massive debt yes, live beyond my means definitely not I do my best in the situation, pay all I can monthly, and do not spend excessively, maybe £50 a month max . I’m stuck in the minimum payment cycle but this ramping up will be hard to manage, not impossible but hard.

The thing is, from what you have posted, you are currently unable to survive a month without spending on your monthly budget using lines of credit. I am guessing that you may also have an overdraft facility. Apologies though, if my assumptions are incorrect. If you don't address your budgeting and increase your card repayments, they will suspend your accounts.