Breathing Space

Pumpkinmad

Please can someone explain in simple terms how breathing space works on a credit card? Thank you 

ManyWays

Are you asking about a formal Breathing Space for all your debts set up by a debt advisor on your behalf, or what happens when you ask a lender for help and they offer "a breathing space"? 

Pumpkinmad

Just when you ask a credit card company for breathing space. Thank you 

sourcrates

Credit card companies can give you a payment holiday, or a reduction or freeze of interest, but all only on a temporary basis, usually 6 months max.

If your issues are going to last longer than that, they will just refer you to the debt charities.

Maybe you`d like to explain your circumstances a little more, are you having short term problems or possibly longer term?

Pumpkinmad

It’s a bigger issue if I’m honest, I think I’m just trying to put off the inevitable which is that I need to default and move forwards with payments I can afford. Just 6 years of bad credit and the worry if needed a replacement car or something in that time is really worrying me. Thank you for replying 

enthusiasticsaver

Breathing space is also recorded on your credit file so if this is not a short term problem then you may have to go down the default route.  In the meantime save up anything you can as you will not have access to credit. Can you put an soa up here for further information? SOA Calculator

ManyWays

Pumpkinmad said:

It’s a bigger issue if I’m honest, I think I’m just trying to put off the inevitable which is that I need to default and move forwards with payments I can afford. Just 6 years of bad credit and the worry if needed a replacement car or something in that time is really worrying me. Thank you for replying 

Why not post a Statement Of Affairs https://www.stoozing.com/soa.php?
It can very hard to take a good decision here, you dont want to rush into something if there is a realistic chance of avoiding it, but nor do you want to delay the inevitable. The sooner defaults are added, the sooner they will drop off.
So hearing the thoughts of strangers, which you can entirely dismiss/ignore if you want, may be helpful

Pumpkinmad

Thank you. My husband left, it’s my shared ownership house that I’m desperate to keep hold of for me and my daughter. All our debt was also in my name and he’s agreed to just walk away from it all.

With what I earn and should be getting in benefits hopefully I can pay the household bills and feed us with minimal for clothing and fun etc which is what it is. But I cannot afford to pay my 3 credit card and loan at all and just thinking maybe I should keep the tiny bit of cash I have left rather than trying to survive just one more month in hope some miracle happens.

thank you for replying 

sourcrates

Its unlikely a miracle will happen, so best to take positive, proactive steps to deal with matters.

Credit cards and loans are all non priority debts, so if you can`t stretch to paying them, don`t stress over it, or dither around cutting the food budget to the bone, you just don`t pay them, the world will not end by doing this.

You can write and tell your lenders your unable to pay, there will be a certain level of help available, but in the long run its best to default, and let the collection process roll out, that takes a good 4/6 months of letters etc, eventually your debt will be either assigned to collectors or sold.

Then see how things are at that point.

Pumpkinmad

Within a few months of them adding interest I will be over my card limits. Probably a stupid question but does that matter? 

RAS

No, it's irrelevant.

Do you owe any debts, including overdraft, with the provider with whom you currently bank or any joint accounts with hubbie? If so you need a new basic bank account, ASAP. There is no credit check. Do not use the switching mechanism as that transfers the DDs for credit cards etc.

Is your husband on the deeds? If your daughter is still at school, have you checked if you can get help with the rental part of your housing cost, try entitledto.co.uk.