Creditcards Unable to pay minimum monthly payment due COVID income reduced

DoniC

I am looking for advice on the best way to survive the next few months until business picks up. I work in the travel industry and our business income has been severely impacted.
I have just paid the minimum monthly balance on American Express £20k, Barclaycard £10k and Lloyds £5k but will not be able to do so next month.
My main question is what would happen if I only paid them £100 each instead of the minimum payment?

I have tried to take additional mortgage funds as my house has alot of equity but my credit rating is poor now due to the cards only being paid min balance for past few months and limited income so guess I am seen as not good for personal loan in respect of repaying the loan.

Any advice?

[Deleted User]

Your payments will either be recorded as late or as an arrangement.

You might want to focus on paying one and letting the others default.

NottinghamKnight

The first thing to do is speak to your lenders and make them aware and see what they can offer you. Extending a mortgage probably in't wise if there is no income for repayments, any return to normal in travel is months if not years away, and the new normal may be very different to what it has been.

D3xt3r5L4b

Post on the DFW board as well

eskbanker

If you ran up £35K of debt while in full employment, that would suggest that your finances weren't sustainable before the crisis either, so you might benefit from stepping back and reviewing the situation in its entirety - it may be worth going over to the debt-free wannabe board and (a) reading up about how debt charities can help you, and (b) posting a Statement of Affairs via which to get constructive suggestions from other posters there.

femalemonarchfemalecanine

eskbanker said:

If you ran up £35K of debt while in full employment, that would suggest that your finances weren't sustainable before the crisis either, so you might benefit from stepping back and reviewing the situation in its entirety - it may be worth going over to the debt-free wannabe board and (a) reading up about how debt charities can help you, and (b) posting a Statement of Affairs via which to get constructive suggestions from other posters there.

Might suggest they had an extension on their house or a new kitchen. You've no idea why they have the debt

D3xt3r5L4b

femalemonarchfemalecanine said:

eskbanker said:

If you ran up £35K of debt while in full employment, that would suggest that your finances weren't sustainable before the crisis either, so you might benefit from stepping back and reviewing the situation in its entirety - it may be worth going over to the debt-free wannabe board and (a) reading up about how debt charities can help you, and (b) posting a Statement of Affairs via which to get constructive suggestions from other posters there.

Might suggest they had an extension on their house or a new kitchen. You've no idea why they have the debt

Both of which shouldn’t have been done on interest bearing credit cards 

NottinghamKnight

D3xt3r5L4b said:

femalemonarchfemalecanine said:

eskbanker said:

If you ran up £35K of debt while in full employment, that would suggest that your finances weren't sustainable before the crisis either, so you might benefit from stepping back and reviewing the situation in its entirety - it may be worth going over to the debt-free wannabe board and (a) reading up about how debt charities can help you, and (b) posting a Statement of Affairs via which to get constructive suggestions from other posters there.

Might suggest they had an extension on their house or a new kitchen. You've no idea why they have the debt

Both of which shouldn’t have been done on internet bearing credit cards 

or even interest bearing cards.

MalMonroe

First thing to do is contact your creditors and let them know. That will ensure better relations than if you just 'default' (don't do that) as zx81 suggests. 

Then I really would contact one of the debt help agencies to see if there is anything they can do to help. I turned to them when I was in dire straits and their information was sensible and very helpful. With one of these companies behind you, creditors do seem to be more amenable. I'm not saying that things will be rosy but you can get help.

I used StepChange, they're marvellous! Doesn't cost you anything to have a look at their site - link here - https://www.stepchange.org/

Also doesn't cost you anything to phone them. All I can say is that they helped me enormously and were able to help ease my worries - which were keeping me awake at night and affecting my health.

MalMonroe

D3xt3r5L4b said:

femalemonarchfemalecanine said:

eskbanker said:

If you ran up £35K of debt while in full employment, that would suggest that your finances weren't sustainable before the crisis either, so you might benefit from stepping back and reviewing the situation in its entirety - it may be worth going over to the debt-free wannabe board and (a) reading up about how debt charities can help you, and (b) posting a Statement of Affairs via which to get constructive suggestions from other posters there.

Might suggest they had an extension on their house or a new kitchen. You've no idea why they have the debt

Both of which shouldn’t have been done on interest bearing credit cards 

This site is for helping, not judging. That's just not your business.

D3xt3r5L4b

MalMonroe said:

D3xt3r5L4b said:

femalemonarchfemalecanine said:

eskbanker said:

If you ran up £35K of debt while in full employment, that would suggest that your finances weren't sustainable before the crisis either, so you might benefit from stepping back and reviewing the situation in its entirety - it may be worth going over to the debt-free wannabe board and (a) reading up about how debt charities can help you, and (b) posting a Statement of Affairs via which to get constructive suggestions from other posters there.

Might suggest they had an extension on their house or a new kitchen. You've no idea why they have the debt

Both of which shouldn’t have been done on interest bearing credit cards 

This site is for helping, not judging. That's just not your business.

But we don’t know what it was anyway that caused it. A mere assumption it would seem