Credit card debt whilst self isolating

Funqi

I'm hoping that we get some leeway with credit card and debt payments during this time.

I have about £12k credit card debt, which I was clearing without problems until now. About £3k of which was a deposit on a wedding venue in Spain latter this year, which is non refundable. I will check with the card provider if we can get any of that back. However, I have asthma and now a cough and using my inhaler every day, something I haven't done in years, so I'm staying home.

I'm self-employed, so no income now, although I have some invoices due to be paid over the next few weeks. However, if I use that to bring my balances down, I'll have nothing.

Wondering who else suddenly found themselves in this position? There is talk of the government freezing or deferring mortgage/rent, bills & taxes, but for those of us who have debt, if there's no relief and this carries on, we're ruined.

[Deleted User]

You won't be able to get the wedding deposit back from your card provider unless the venue has cancelled and refuses to refund.

Speak to your card provider about payment holidays and the implication.  Some are already offering it, but you don't say who your provider is, so you'll need to check.

Funqi

Ok thanks. I have tesco a virgin money credit cards.

The venue cancelled our meeting this week, but not the wedding itself yet, I assume they will wait until they absolutely have to cancel. Its going to be impossible in any case now, for us and for them.

born_again

Funqi said:

The venue cancelled our meeting this week, but not the wedding itself yet, 

Just to clear something up on this point.
Are you in the UK now or do you live in Spain?

Funqi

I live in UK, my fiance is Spanish, so we were going to get married there. Not just for the weather, but logistically aswell, since her family are there and there would also be some people coming from South America. Some of my debt is also paying flights from there, so there is a chance that may get refunded further down the line.

I'm going to call my bank and card providers to see if they can at least defer interest and assure me I won't default and hopefully allow me to pick up when I get back to work.

Shame, I had work 7 days a week and was looking to cut this by more than half by the summer and see my credit rating soar, now I'm looking at the polar opposite. But hey, we're some of the luckier ones so far!

Ergates

To reiterate what ZX81 said - speak to your lender and doing it sooner rather than later.  There are going to be many thousands of people in a similar situation to you who either cannot go to work (due to self-isolation) or who's businesses are having to close (as all their customers are staying at home) so FIs will have to take that into account.

sleepyjones

Some info here : https://www.moneysavingexpert.com/news/2020/03/uk-coronavirus-help-and-your-rights/
A lot of Credit Card companies are offering Payment Holidays but Virgin / Tesco aren't on the list here.

Funqi

Thanks for this info. I called HSBC, who said they will suspend payments to my HSBC credit card and suspend interest on that and my overdraft for 2 months. The guy I spoke to also said as a gesture, he'd give me back £100 of the interest I paid last month, although he didn't actually do it, but anyway, that's given me a bit or respite, but he did say that they will be marking my credit file with missed payments.

I've been hiddeously sick with this virus for over a week now, so I haven't actually called Tesco or Virgin, although I have made payments on both this week. I'm self-employed, so at the moment, I'm in limbo. Given that I have this virus now (I haven't been tested, but these symptoms all match and it's like nothing I've ever experienced before), it does mean that I should be ok to work again a few weeks after these symptoms have gone. The only question being, if there will even be any work to be had.

I have just over £3k still to be paid, assuming my clients will be making payments as usual, so that'll bring the overdraft down to around £1k, but after that,  unless I'm working again soon, either they'll have to help me out some more, or my debt is going to spiral.

We may be able to claim the £1k we paid as deposit for the wedding and £1100 we paid for a flight for some family on the card insurance, depending what happens, but those are not until August.

callum9999

Funqi said:

Thanks for this info. I called HSBC, who said they will suspend payments to my HSBC credit card and suspend interest on that and my overdraft for 2 months. The guy I spoke to also said as a gesture, he'd give me back £100 of the interest I paid last month, although he didn't actually do it, but anyway, that's given me a bit or respite, but he did say that they will be marking my credit file with missed payments.

I've been hiddeously sick with this virus for over a week now, so I haven't actually called Tesco or Virgin, although I have made payments on both this week. I'm self-employed, so at the moment, I'm in limbo. Given that I have this virus now (I haven't been tested, but these symptoms all match and it's like nothing I've ever experienced before), it does mean that I should be ok to work again a few weeks after these symptoms have gone. The only question being, if there will even be any work to be had.

I have just over £3k still to be paid, assuming my clients will be making payments as usual, so that'll bring the overdraft down to around £1k, but after that,  unless I'm working again soon, either they'll have to help me out some more, or my debt is going to spiral.

We may be able to claim the £1k we paid as deposit for the wedding and £1100 we paid for a flight for some family on the card insurance, depending what happens, but those are not until August.

It's good that you seem to have things more under control, but you should definitely seek medical advice before assuming that you have Covid so will be fine to go out once you recover. Just because it feels different to previous "normal flus" you may have had, doesn't necessarily mean it isn't one.

Get well soon!

Anamox

Hi Fungi,
Just so you're aware, the £100 refund he promised can take a long time to appear. I've had similar gestures in the past and they've taken around 7 days to appear on my statement/balance.

Good luck with everything!

Funqi

Thanks folks.

Honestly I've never had any kind of flu like this. My sense of smell has completely disappeared for over a week so far and I am not sneezing, nor do I have a blocked or runny nose. The dizziness, fatigue and aching are quite extreme and I'm using my inhaler many times every day. I haven't touched it in over 15 years prior to this.

HSBC took the interest from my account today, so I suppose I better call them again. I still haven't called tesco or virgin yet, I'll do that today aswell. I'm not one to bury my head in the sand, it is honestly quite difficult to concentrate on anything or hold a conversation right now.