Help and advice regarding credit card payments

Oldworryguts

I am 64 years old and suffering ill health . When I was in well paid employment I did loads of balance transfers - I have 5 cards and my husband has 5 ( although his are manageable) . All my 0%offers disappeared - my employment has changed and all the cards are charging interest. I just manage to cover minimum payments but cannot afford normal day to day expenses. I have read a few threads and become quite confused - is it better to ask the c.c companies to reduce the interest of go straight for a DRO? Do I stop paying the repayments? One of my c cards is from my bank - is there a chance that they will close my account if I default on their c card? 
I would really appreciate your advice thanks

Oldworryguts

I haven't any savings as this situation has been developing over many years. All of the cards have reverted to full interest over those years and I have no quality of life as I'm now paying practically all my income out on repayments. 

RAS

Oldworryguts, there are several solutions but we need a bit more information to help you.

Starting with:

Do you own your home, mortgage or rent?

How much is your total debt?

Oldworryguts

We are tenants and my total c.card debt is £18,500 - just seeing that in print has reduced me to tears - sorry if I'm being a bit abrupt but I'm funding this incredibly difficult

ManyWays

Tenants, 18k of credit card debt, income drop due to poor health, so far this sounds like a debt relief order could be a good option for you.
But do you have a car, if you own one or have one on finance, how much is it worth? It doesnt matter if your husband owns a car and you drive it.

RAS

Thanks for that. Just about everyone here is or has been in debt at one time, although we get the odd insensitive person. 

You've not got property to protect. Are you still working?

It would be good to see your statement of Affairs, if you don't mind sharing as there are strict rules about DROs.

Depending on the situation, it may also be possible to get some of the debt written off.

https/:www.lemonfool.co.uk

Oldworryguts

I haven't done a statement of affairs but have I read somewhere that there is a template? We own an old mini that's worth about £500 - we had to sell our other car to cover our expenditure temporarily. I work in retail at national minimum wage - my contract is 8 hours so rely on benefits to top up as my partner is now claiming state pension.
Thank for your replies

RAS

Thanks, I'm sure @fatbelly will comment, but a DRO looks like a good option. But write offs might be possible.

Do you have any joint accounts with hubbie?

If you are on benefits, then please open a new basic bank account using a bank not related to any where you have debt. It doesn't need a credit check, Barclays and Co-op do them or you could use Starling or Monzo. You'll ideally need to be on the electoral roll and have some evidence of address like a utility bill.

Once that's done transfer your income streams to the new account, and your rent, CT, utility DDs. Then cancel the creditor DDs. Go cold turkey and don't speak to them again.

fatbelly

Good advice, and so far I've not seen anything to counter the suggestion that a DRO would be a good option.

Citizens Advice and Money Wellness do most of them these days

Oldworryguts

Thank you all for your advice - I went to CAB last Friday and he told me about DRO but not how to go about it but I can Google that. Best foot forward now - I feel better for speaking to you. Many thanks

RAS

Glad to help.

A couple of pointers.

Although there are legal rules round DROs, different providers seem to interpretate them differently. So some look at the household spends and split them 50:50 and some split them according to income (you earn £1k, OH 2k, so you pay 33.3% of joint costs). You need to ask local CAB what their rules are.

And some refuse insolvency options if your income is less than your essential spends.

If you need further support, please come back. And also let us know if your DRO is granted.