Difficulty meeting minimum payment

reb0511

I hope in in the right section, but if Im not I do appologise, due to the increase in everything and my husbands company not allowing overtime anymore, we can no longer meet the minimum paymets on our credit cards, I have spoken to Alliance and Leicester today to explain and ask if they will freeze charges and accespt a lower payment, but they said if they made an agreement it would affect our credit raiting for 16 years and we wouldn't be able to get any credit including a mortgage for that time, does anyone know if that is true?
Thanks

prudentsaving42

1) Beans on toast. Eat ONLY at home.
2) Don't drive, walk.
3) Cancel your cable TV.
4) Stop talking on the phone.
5) Use less electricity, gas and water (if applicable).

Bismarck

reb0511 wrote: »

I hope in in the right section, but if Im not I do appologise, due to the increase in everything and my husbands company not allowing overtime anymore, we can no longer meet the minimum paymets on our credit cards, I have spoken to Alliance and Leicester today to explain and ask if they will freeze charges and accespt a lower payment, but they said if they made an agreement it would affect our credit raiting for 16 years and we wouldn't be able to get any credit including a mortgage for that time, does anyone know if that is true?
Thanks

others with more specific knowledge will give more details later but...

16 years?...no....6 maybe....

it will affect the credit you get...i.e your options may be more restricted but you may still have some choice re mortgages - it's just that they will probably cost more next time you come to apply for one.

NickX

reb0511 wrote: »

it would affect our credit raiting for 16 years and we wouldn't be able to get any credit including a mortgage for that time, does anyone know if that is true?
Thanks

16 years - What utter rubbish - defaults only stay on file for 6 years max, even bankruptcy only lasts 6 years.

If you are struggling, your not really going to want any more credit for a while, so I would accept the hit on your credit file and agree reduced payments with them, especially if they will freeze the interest.

It sounds to me as though they are just trying to talk you out of this because they would lose out.

Moggles_2

6 years is still a long time to suffer the consequences. Obviously, we don't know your overall financial circumstances, but I'd make an appointment with your local CAB. Advice is free after all, so you've nothing to lose.

Also, why not post a SOA on the Debt-Free Wannabe board? You'll get lots of support over there