Credit cards - can you ring them and ask to reduce payments?

survivor84

Hello,

I am very new to the forum but am in need of major advice! I have very recently left my abusive marriage and have been left with lots of debt in my name (£26,000) on credit cards. I am really struggling to meet the minimum payments each month and pay for everything else in the home. I work full time, the total debt is slightly lower than what I earn a year. I have four children to support. What do I do? I really need to get a hold of my finances. My mum has said if I ring up the card companies and explain my situation and ask to reduce my payments they might let me, what do you think? Thanks so much xx

amersall

Ring them and ask, have income and expenditure to hand.
People can get arrangements to pay.

Willing2Learn

Hi survivor84 and welcome to the forum

You really need to be posting on the Debt-Free Wannabe sub-forum. Over there you will receive quality advice, guidance and support to move forward. It would be really helpful if you could post your Statement of Affairs (SOA). With an accurate SOA, MSEers will be able to see your exact circumstances and advise accordingly.

You need a plan to make things add up again. A Debt Management Plan (DMP) could well be the way forward for you. For free professional advice, you can contact StepChange, CAB, PayPlan and National Debtline.

redfox

we move threads if we think they will get more help elsewhere (please read the forum rule) so this post/thread has been moved to the Debt Free Wannabe board. If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"]forumteam@moneysavingexpert.com[/EMAIL].

sourcrates

Hi,


Credit card companies will only enter into short term payment arrangements with individual customers, usually not longer than 6 months.


If its long term debt mangement you are seeking, then you must go through one of the free debt charities, as with everything in life, there is a correct process to follow, if you go through one of the recognised debt charities, the creditors have more discretion to agree permanant lower repayments.

[Deleted User]

Yes most financial places now have to provide 'counsel'.

The credit card company definately offered help when I said after 4 months of paying the recommend (above minimum payments which took the charge to over double the payment) could I revert to min payments as I'd been happily paying this without problem; they were asking if there was anything I could be helped with until I was of the phone. I even got an email confirming back to min payments though the telephone advisor thought that wouldn't happen.

I recently done a chargeback on an unrecognised e-book direct debit charge through my bank (ironically involving debt advice when I know I wouldn't go near private advice on consolidation loans as I simply don't have the credit rating so lol and the only place I'd tried was National debtline who make it clear they don't deal with all types of lease that I was seeking particular help with) and they (the bank) offered free help too, there and then. Years ago I imagine they wouldn't have.

You aren't going to get anywhere by not asking.

survivor84

Thanks so much for the replies. Please find my SOA below:

Household Information
Number of adults in household........... 1
Number of children in household......... 4
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 1901.35
Partners monthly income after tax....... 0
Benefits................................ 1216
Other income............................ 0
Total monthly income.................... 3117.35

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 925
Management charge (leasehold property).. 0
Council tax............................. 158
Electricity............................. 62.1
Gas..................................... 53.06
Oil..................................... 0
Water rates............................. 41
Telephone (land line)................... 0
Mobile phone............................ 106.54
TV Licence.............................. 12.13
Satellite/Cable TV...................... 32
Internet Services....................... 33
Groceries etc. ......................... 500
Clothing................................ 100
Petrol/diesel........................... 140
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 20
Car parking............................. 20
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 200
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 12.02
Life assurance ......................... 7.47
Other insurance......................... 21
Presents (birthday, christmas etc)...... 30
Haircuts................................ 50
Entertainment........................... 50
Holiday................................. 30
Emergency fund.......................... 30
Total monthly expenses.................. 2643.32


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
credit card....................9990......234.......0
credit card....................9811......224.......0
credit card....................2750......115.......0
overdraft......................3000......0.........0
credit line....................1300......53........0
store card.....................1800......60........0
credit card....................3100......173.......0
Total unsecured debts..........31751.....859.......-


Monthly Budget Summary
Total monthly income.................... 3,117.35
Expenses (including HP & secured debts). 2,643.32
Available for debt repayments........... 474.03
Monthly UNsecured debt repayments....... 859
Amount short for making debt repayments. -384.97

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -31,751
Net Assets.............................. -31,751

Any help or advice you can offer is much appreciated. I am finding that making the minimum repayments on all the cards is crippling me. I'm then having to borrow money to make ends meet and it's such a vicious cycle. Thank you so much. xxx

Willing2Learn

My initial thoughts:

• Are you getting a single person discount for council tax?
• Are you receiving child maintenance from your ex-husband to help pay with the day-to-day care of your four children?
• How come your mobile 'phone cost is so high?
• Is there any way you can reduce your groceries by shopping at Lidl or Aldi? Do you batch cook?
• Why are there £180/month costs related to a car when you do not own a car?
• What exactly is the £200 other child related expenses for?
• Are all your unsecured debts really at 0% APR?

survivor84

I have applied for council tax discount, yet to hear.
No child maintenance from ex husband.
Mobile phone cost os for 4 mobile phones, mine and 3 childrens.
I already shop at lidl/aldi and batch cook. My boys are big eaters.
My grandad lets me borrow his car.
£200 other child expenses are sports clubs for four children which also double as after school clubs.
No they're not at 0% but I din't know what % they are, definitely high!

Thanks

enthusiasticsaver

I think you will need some sort of debt solution but in the interim period I suggest you phone and ask for some breathing space while you sort your finances out. It will affect your credit record but to be honest borrowing more either on cards or loans is the worst thing you could do anyway. Depending on the interest rates your debts are charging you a DMP may be a good option or even bankruptcy.

survivor84

Thank you. I have thought about bankruptcy but it scares me. x