Persistent debt question

Dandytf

Thanks Terry.T

Your description of requirement to save higher balance from yrs3+4 aver1+2 makes sense,
Considering I went for Kitchen Floor option during yr2.
Then maybe 24 mths*50 pounds won't; be simple.
From Dec end I'll 1st use my inexpensive loans repayment of 55 per month as I only have Oct'+Nov to clear that off -not an expensive sum borrowed though expensive apr over past 2 yrs.
I'll hold off using H2s and hopefully keep Aqua happy with H2s sum next year.
I think the 50. Pounds per month has taught me some basics of saving.
1. Can be used for Emergancy only if required.
2. Can be used for simple essential home improvements.
3. Possible consider savings accounts elsewhere after H2s closes yr 4.

Dandytf

Aqua quote today when I rec' my 9 mths persistent debt letter.
Their advisors now know fca rules are being implemented.

E,g. Aq 1 1800 balance approx been paying slightly above min for some time.
Todays letter action will be taken in 9 mths as 36 mths would have been permanent debt cycle.

I asked is there any way that any action could be avoided as I don't have 1800 pounds.
I was advised that the amount to clear before 9 mths ends is 691 pounds approx
If I can't clear that amount then limit could be removed and balance would be split over 48 mths.
I asked if I were to pary 500 pounds next March (from H2s) would that help -yes if I could could manage to pay off remainder of 691 before 9mths end.

Mser's take from that info what you find useful and correct anything you feel is wrong.
One example which leads me to making 500 payment next March, meanwhile I'll plan to add 20or25 pounds to existing payments once my small Loan ends Nov' end.

Dandytf

2nd call today asked to talk to Aqua collections to confirm yesterdays info.
Today the min I can pay maybe from Feb is 341 not 691.
If I pay 341 early 2020 then that would take Persistent debt back to 15 months therefore allowing much more time to continue to reduce balance, thankfully
This is route I plan to take not quite as costly as 1st thought.

Thanks mser's I do appreciate the rules are to ensure balances reduce considerably.

danguy

Dandytf wrote: »

OP

Hope you avoid any further persistent debts action.
Sounds as though your doing well increasing payments.

Thanks it is all paid now. what an amazing feeling. good luck with your debt.

jonesgk35

Sorry to bother you, do you know if I cancel or temporarily postpone the the card, and set up a DD for more than the minimum - would this have a negative impact on my credit rating?

Ben8282

jonesgk35 wrote: »

Sorry to bother you, do you know if I cancel or temporarily postpone the the card, and set up a DD for more than the minimum - would this have a negative impact on my credit rating?

As you are new to the forum could I suggest that next time you open a new thread to discuss your problem rather than tag your question on to a 2 month dormant thread. Adding your question to thread like this distracts from the original posters question.
Not sure by what you mean by 'temporarily postpone' a card. If you cancel a card you will have to repay the full balance immediately in order to close the account.
The effect on your credit rating of increasing payments and paying more than the minimum would not normally be negative.

Dandytf

I'll post a quick update though possibly mentioned elsewhere,
Cap1 262 paid from Mortgage overpayment reserve -e-mail received a few days later your card isn't being suspended.
Aqua- 324 due next 1-3 months approx- have requested similar sum from help2save- aqua 324 will be paid in a few days.
2nd Aqua -that's another 341 though not until nearer Sept- to be paid from h2save from April.

Each mentioned payments are one off's due to persistent debt rules.
Hopefully these will bring Interest down enough, meanwhile I'll continue to not use cards as often as possible and continue with decent minimum payments.

bobstheboy

I have changed my cards from paying interest every month to 0% for 28 months. I am paying about 10% over the minimum payment each month and although it is early days it is great seeing every pound repaying debt. I didn't think I would be able to do it, through this site I will save thousands in interest.

Dandytf

Quick. Update aqua 330 paid today -hopefully allowing some Extra New Rules Months.
Interested to know what effect today's payment with next DD payment could have on next months statement in respect of amount of 'booster payment' they recommend.
At least I'll continue with slightly above Min DD and hopefully very soon reach point where DD is exceeding Interest occurred.