Communicating Change of Circumstances with Creditor

SpireCaptain

Good morning

My partner and I are going to be splitting up this year and selling a jointly owned house.

I'm going to struggle paying my credit card bills next month. I had my heart set on cancelling direct debits and starting saving for a DMP as they default but reading further threads some people have had success talking directly to their card issuer for a few months lower APR or grace period if the card isn't used again.

However if I can tread water until the house sells, I maybe able to pay off a chunk of my debt and still have some kind of credit file that'll allow me to join a family mortgage with my sister/Mum.

Would anyone advise talking directly to creditors and explain change in circumstances coming up?If I was successful and they could reduce the APR for 12 months and I continue minimum payments that would prevent any arrangement to pay markers? The main creditor is Tesco next month. The others are on 0% til later in the year.

Or would talking to them set alarm bells ringing and they'd put me on a payment plan with AP markers etc.

Any advice gladly received.

ManyWays

Sorry to hear it has come to this, but you have been expecting it.

Have you thought about selling the BTL?

Which creditors are you thinking of talking to? can you list them? Obviously the cards at 0% cant go lower.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81856205#Comment_81856205

Yes you're right it's been on the cards since 2017 but we kept together for the boys, managed 3 holidays together but very strained by the last one.

I need to take the bull by the horns and talk to the tenant about selling it. My Mum said do t lose an asset but I explained how little income it provides and the extra stress since the 1st one got trashed and cost me so much.

It'll Tesco Bank in the first instance. Payments jumped from £150 this month to £390 in Feb. I know they're now part of Barclays, I've got two Barclaycards full to the brim on 0% until mid summer.

I may move a £4k NewDay balance to 18% APR MBNA and then transfer as much as I can to NewDay from Tesco as NewDay somehow are still offering 0% deal. So about £5k. Then Tesco will have £9k on 24% APR

SpireCaptain

If we're selling up is it worth moving Halifax mortgage to 6 months interest only for a bit of breathing space. I'm applying 6 months interest only on a Bounce Back Loan as well to give £90 into the monthly budget. With Halifax mortgage that might give £280 as well so maybe £350 for 6 months to get together ready for bond on a rental house perhaps.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81856243#Comment_81856243

An email has just dropped into the inbox increasing my credit limit from £6000 to £7250. Crazy.

They say it's because I'm managing my account well....(a few pounds over minimum, and made an extra payment perhaps that's prompted it? But they also can see I've spent on it so it's just business to them offering it until I can't pay anymore)

But it'll allow me to shift almost half of the Tesco to 0% for 6 months. That's 2. Credit limit increases within 6 months even though I'm at nearly 80% credit utilisation across all accounts.