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Breathing Space

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Please can someone explain in simple terms how breathing space works on a credit card? Thank you 
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  • ManyWays
    ManyWays Posts: 1,318 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    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
    Pumpkinmad Posts: 21 Forumite
    10 Posts
    Just when you ask a credit card company for breathing space. Thank you 
  • sourcrates
    sourcrates Posts: 31,516 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    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?
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Pumpkinmad
    Pumpkinmad Posts: 21 Forumite
    10 Posts
    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
    enthusiasticsaver Posts: 16,054 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • ManyWays
    ManyWays Posts: 1,318 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    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
    Pumpkinmad Posts: 21 Forumite
    10 Posts
    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
    sourcrates Posts: 31,516 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    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.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • Pumpkinmad
    Pumpkinmad Posts: 21 Forumite
    10 Posts
    Within a few months of them adding interest I will be over my card limits. Probably a stupid question but does that matter? 
  • RAS
    RAS Posts: 35,549 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
    If you've have not made a mistake, you've made nothing
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