Need to write to credit cards, would like to reduce payments and stop interest

Suzanne2006

I have searched for this using every combination of words I can think so sorry if its hiding somewhere.

I am sitting down to write a letter to my sons credit card companies, he has got into a right mess and cant meet the payments (he is only 19). He is now paying interest on both of them as he missed payments. One is virgin and the other MBNA, both up to the limit.

I wondered if anyone had a good idea of exactly what I need to include in the letter for maximum affect. I will obviously word it from him and he will sign it, I will say he can't afford the payment and his outgoings have gone up. I will ask if the interest can be stopped and the payments reduced. Anyone know the likelyhood of them agreeing to this? Do they have an obligation to help and is there any jargon I need to include?

Thanks!! :rotfl:

bethanyrayne

Suzanne2006 wrote: »

I have searched for this using every combination of words I can think so sorry if its hiding somewhere.

I am sitting down to write a letter to my sons credit card companies, he has got into a right mess and cant meet the payments (he is only 19). He is now paying interest on both of them as he missed payments. One is virgin and the other MBNA, both up to the limit.

I wondered if anyone had a good idea of exactly what I need to include in the letter for maximum affect. I will obviously word it from him and he will sign it, I will say he can't afford the payment and his outgoings have gone up. I will ask if the interest can be stopped and the payments reduced. Anyone know the likelyhood of them agreeing to this? Do they have an obligation to help and is there any jargon I need to include?

Thanks!! :rotfl:

Don't think they will do anything until he defaults and then he's ruined his credit rating for 6 years

Lexis200

Hi

The reply you've had is correct, your son's credit rating will be screwed for 6 years, at which point he can start to rebuild it, but if he's in trouble you need to get it sorted out.

I hadn't missed/defaulted on any cards when I asked for payment plans though - I had a couple of Lloyds cards which, along with the others I was just about keeping on top of. Then Lloyds decided to more than double their interest rates on me (I hadn't ever missed/been late in paying so was never sure why). This basically meant my interest alone on these cards jumped from about £125 a month (I had good rates!) to over £650 a month - more than my minimum payments. Added to this my partner had lost a major contract so no more money coming in, and of course this snowballed everything and I realised straight away there was no way I could continue, so had to ask for repayment plans from all cards.

I went to the National Debtline website who have template letters for all sorts of debt issues, and I used their one as a basis. I didn't use the actual template as it seemed poorly written to me, plus I needed to include other details as I hadn't defaulted etc but knew I would if it was left, but it certainly gives you a good idea of where to start. They also have follow up letters in case you don't get anywhere with the first one.

Every bank agreed to my offers straight away (barring the Co-op, who despite their ads seem remarkably un-ethical in their dealings with customers, but that's another story). I did have to send in extra information to a couple, but as they hadn't seen any problems with the account and then I suddenly needed a payment plan, this seemed fair on their part.

I would just say though that if your son has not defaulted, they will in all likelihood tell you/him that they will need to put the account on as a default before they can go anywhere with your request. This takes time (mine were anywhere between a week or so and about 6 weeks), and they may or may not agree to stop the interest on the account while they do this.

This is only how my cards were handled so please don't take any of what I say as gospel, but I can't think it's too different across the board so hopefully he'll be able to get sorted sooner rather than later.

I hope this is of some help to you:)