Tesco CC demanding repayment in full

Kevindurant

I’ve had a Tesco credit card for years and it’s high credit limit of £11,000, I’ve always paid the minimum and then respent so it’s just under the £11k. They sent me a warning letter some months ago to say it’s not healthy and that they would dictate a repayment plan. Then Covid hit and I heard nothing.mesntime I’ve been clearing and adding additional payments so now got it down to £10,500. A letter arrived today saying I have three options but the cheapest was to start repaying £350 a month. I can’t afford that so I’ll have to call them but surely if I’m under the limit , why should they care or demand this ? Are they under new laws to make sure people like me don’t get into financial trouble ? Frankly their plan is going to derail me ! Any advice anyone (aside from get out of debt which I know ) thanks 

es5595

What is your plan? 

How much else do you owe? And to whom? Do you have a house/significant assets? 

If you’re able to fill in a spending and expenditure form there will be better perk me than me to come along and make suggestions. 

However, if you’ve only cleared £500 is 7 months, I could imagine they’ve got concerns. You must be paying significant interest too...

Yahoo_Mail

Kevindurant said:

I’ve had a Tesco credit card for years and it’s high credit limit of £11,000, I’ve always paid the minimum and then respent so it’s just under the £11k. They sent me a warning letter some months ago to say it’s not healthy and that they would dictate a repayment plan. Then Covid hit and I heard nothing.mesntime I’ve been clearing and adding additional payments so now got it down to £10,500. A letter arrived today saying I have three options but the cheapest was to start repaying £350 a month. I can’t afford that so I’ll have to call them but surely if I’m under the limit , why should they care or demand this ? Are they under new laws to make sure people like me don’t get into financial trouble ? Frankly their plan is going to derail me ! Any advice anyone (aside from get out of debt which I know ) thanks 

https://www.stepchange.org/debt-info/persistent-credit-card-debt.aspx

They're doing it because they have to.  At the end of the day, they can't make you pay more than you can afford, but it's very likely that if you don't they'll suspend your card to prevent any further spending.

Kevindurant

Thanks both , just seem Martin post an article on exactly this subject. Seems I’m good to continue clearing the credit card on what I can afford ! Thanks 

penners324

You need to get on the debt free wannabe board to get your outgoings way down to give you more money to send to the CC.

[Deleted User]

If you keep just paying the minimum they will almost certainly close the card and make you pay it off (no more spending on it).

You are in persistent debt and your inability to pay it down has triggered the debt rules. While you may not get anywhere, it would be worth looking at a balance transfer card (or two) to try and get some of the debt onto 0% so you can hit your main balance harder - the amount of interest you would be paying is reflected in the fact you have only cleared the balance down £500 in 7 months.

molerat

So your thread title is incorrect then ?

jonesMUFCforever

I suspect you have had the persistent debt letter - in that you have not cleared the card in full for at least the last 3 years.
Financial authorities have told lenders they must help customers pay down debt in these cases to minimise how much interest they pay.
When you phone them expect them to say that your card is blocked for new purchases.
Do you qualify at all for any new cards that might offer you a balance transfer deal for at least part of the debt?
As others have said this might be the lightbulb moment when you realise that now is the time to seriously try and reduce the balance. The debt free board on here will offer you help with this.

sleepyjones

The minimum payment on £11k that must be around £350 anyway?

whitesmith

Nothing has changed on your credit agreement - you still are able to pay the minimum payment each month if you choose.

Look on the letter as a 'friendly advice on other options to get your debt down' letter, that is all.

https://www.moneyadviceservice.org.uk/en/articles/persistent-debt

Feel free to ignore it.

Malkytheheed

How have you only brought it down from £11k to £10.5K in what...8 months? How much do you earn? You need to come to terms with the fact you have (at least) £11k debt and start throwing as much money as you can at it.