Can’t repay CC - isolating for 12 weeks!

quietly_myself

Unlike mortgages and loans, the government have not addressed the issue of credit card debt and have left it for individual banks to decide what to do to, er, “help” customers. That means that some of us have been left facing large repayments with no hope of being able to meet them.

I’m in the “Extemely Vulnerable” group of people who have been told to self-isolate for 12 weeks due to the coronavirus. My employer has said they will pay my “basic wage” but this amounts to only 15 hours per week when I normally work a 35+ hour week.

My credit card repayments to Barclaycard total over £400 per month. I’ve never missed a payment, but have also never been able to transfer to a 0% card or a loan. With my sudden reduction in income there is no way I can keep up these repayments.

So far Barclays have refused to offer a repayment holiday. They are offering to waive fees for late repayments for three months, but will continue to charge interest and expect the full 3-months to be repaid by the end of that period. They advise anyone with severe financial problems to phone the helpline, but for the last few days it’s been impossible to get through (and as India goes into lockdown this isn’t likely to improve).

It basically means that, come April, for the first time I will start defaulting on my payments and am now seriously having to consider filing for bankruptcy. I know other people are facing similar issues with their banks and was wondering what help might be available for us going forward considering there has been no talk of the government addressing this issue and, so far as I can tell, has not been taken up by any consumer finance groups (MoneySavingExpert included).

EricVicks

I'm amazed that they aren't offering repayment holidays... on what basis did they reject it? Did they give a reason?

chistery

If you are at home, can you not be considered furloughed, so your company can claim money from the government? Would that help?

p00hsticks

chistery said:

If you are at home, can you not be considered furloughed, so your company can claim money from the government? Would that help?

The OP says that they will still be receiving their 'basic wage' - but normally work many extra hours on top of that.

It's not currently clear what the 80% figure in the government job retention scheme will be based on, but if it doesn't include overtime normally worked then it's not going to help.

quietly_myself

Still waiting to hear what the details re. 80% of wages are. It has been suggested that people on 0 hours contracts might have their government-backed payments based on their February wages. But whether that would be the same for “minimum hours” contracts is anyone’s guess. At the moment my employer is saying it will only be the 15 hours though (which in my situation is just enough to live on and better than SSP).

2e0arr

are you still spending on the card ?

quietly_myself

It’s two separate cards (both Barclaycard). Haven’t spent on either of them for years, I’ve just been gradually paying them off.

2e0arr

how much do you still owe ?

D3xt3r5L4b

EricVicks said:

I'm amazed that they aren't offering repayment holidays... on what basis did they reject it? Did they give a reason?

Why would they?

sleepyjones

Apply for Universal Credit, It takes 5 - 6 weeks so better to do it ASAP then if you can make your payment this month you might get a UC payment in time for your next statement.
If, for whatever reason, you  decide you don't want to get a top up from Universal Credit then you can just close your claim but best to get the application submitted now just in case you do need it just so that the countdown clock has started.  (Also, the Job Centre's are closed so you don't have to do the "walk of shame", they do everything online / by phone.)

callum9999

D3xt3r5L4b said:

EricVicks said:

I'm amazed that they aren't offering repayment holidays... on what basis did they reject it? Did they give a reason?

Why would they?

Many financial institutions are. Perhaps it escaped your notice, but we're currently in the midst of a global crisis! Not only is good will a powerful PR exercise, I'd imagine if you provide a little help early on then it's more likely that you'll get everything back in the long run.