Giving up work for disability

robti

Hi looking for any info on the above with my existing cards, if I inform them that I have to give up self employment and go to disability benefits what will happen to my limits on my cards ?
 Thanks 

kempiejon

robti said:

Hi looking for any info on the above with my existing cards, if I inform them that I have to give up self employment and go to disability benefits what will happen to my limits on my cards ?
 Thanks 

I don't know. Are you obliged to tell them? I know when I ask for an increase on my limits they check my circumstances. If your income reduces you probably won't be able to spend as much so might not need larger limits. But it's currently none of this business  unless you want more money or struggle to pay..

CliveOfIndia

It's probably more pertinent to ask what your current situation is as regards debt.  Do you currently have an outstanding balance on the cards or do you pay them in full every month?  If you have a balance, will you be able to pay this off reasonably quickly before your income drops?

If you're going to struggle to maintain your contractual payments, then I think this would be more of an issue, and you're probably better to address this sooner rather than later.

Nasqueron

kempiejon said:

robti said:

Hi looking for any info on the above with my existing cards, if I inform them that I have to give up self employment and go to disability benefits what will happen to my limits on my cards ?
 Thanks 

I don't know. Are you obliged to tell them? I know when I ask for an increase on my limits they check my circumstances. If your income reduces you probably won't be able to spend as much so might not need larger limits. But it's currently none of this business  unless you want more money or struggle to pay..

Almost all cards have a term where you are required to tell them if you are going to see a reduction in income so they can assess if you are still "worth" the limit they currently give you. 

robti

CliveOfIndia said:

It's probably more pertinent to ask what your current situation is as regards debt.  Do you currently have an outstanding balance on the cards or do you pay them in full every month?  If you have a balance, will you be able to pay this off reasonably quickly before your income drops?

If you're going to struggle to maintain your contractual payments, then I think this would be more of an issue, and you're probably better to address this sooner rather than later.

Always pay them off in full and no debt other than £7900 mortgage left and have around £10000 in cash/savings squirreled away

sausage_time

Sorry to hear you may have to give up work.

From one of my (many!) credit cards:

You must let us know if your circumstances change in a way which we might not otherwise know about and which is likely to change our assessment of your financial standing. Examples of such changes in your circumstances include if you lose your job, your income significantly reduces for whatever reason or if you are off work due to long term sickness.

Having said that, I didn't tell any of my providers when I retired.  Like you I pay in full every month (always have, always will). If that principle won't change I don't feel the need to alert them.  Could you cope with a reduction in credit limit (perhaps the most likely outcome) if you notify them?

robti

sausage_time said:

Sorry to hear you may have to give up work.

From one of my (many!) credit cards:

You must let us know if your circumstances change in a way which we might not otherwise know about and which is likely to change our assessment of your financial standing. Examples of such changes in your circumstances include if you lose your job, your income significantly reduces for whatever reason or if you are off work due to long term sickness.

Having said that, I didn't tell any of my providers when I retired.  Like you I pay in full every month (always have, always will). If that principle won't change I don't feel the need to alert them.  Could you cope with a reduction in credit limit (perhaps the most likely outcome) if you notify them?

Never go near my credit limits on any of my cards as I know I have to clear 5hem off