Debts

[dee5]

I currently have got myself into a bit of finacial bother and i owe some money on my credit cards and 2 catalogues. The minimum payments are well outside my current budget. I have written to them but none of them have written back. Any ideas of how to get them to accept my lower payments offer or how to earn some extra money?

Thanks

[andy-hughes]

Credit Card companies are usually sympathetic to debt problems, you just have to be straight with them.

Write to each of them advising that you want to terminate your account with them, and repay the money you owe. Set out a plan you can afford - say a regular fixed monthly payment over two years, and ask them if they will agree. Chances are they will - companies are far happier to deal with you as someone willing to pay their debt, and proactive with a plan, as opposed to someone they have to sue, which is expensive and time consuming for them.

Then all you have to do is to stick to the payments - Standing Orders from your bank on the first of each month should do it - and you'll be OK.

Do NOT miss payments - if something unavoidable happens, write to them and tell them - again they are more sympathetic if they see you being responsible, but they have limited patience, and could sue you for the whold debt in one go if you seem unreliable.

Good luck.

[Loosehead]

Yep Andy is spot on, creditors hate the head in the sand mentality, most legal action would be avoided if debtors would negotiate. Just pay what you can an even if action is taken it will look favourable if you have been making an effort to pay. Oh and bin those naffing catalogues and close your account, I cannot believe how many people get entwinned in this incredibly expensive way of borrowing, madness!

[Richie1976]

Have you transfered your current balances on to a credit card that offers 0% apr? It's normally an introductory offer but it all helps.

[arliebarlie]

firstly the credit card companies and catalogues will not be able to help you until you have gone into arrears........ sad but true.

Once you are in arrears phone them and they will ask you to complete a financial statement - this will show them you income and outgoings. The money left over then is what these companies can take from you. they have to do it in order so the credit card with the largest debt will take the biggest share etc. By law credit card companies cannot demand for you to pay more than you can afford.

Once you have agreed a payment plan with them it is a good idea to stick to it because they will try to up your payments if you stop paying.

if you need more advice go to someone free like the CAB or debt councelling service as they will not charge you or try to get you to take out a loan like other debt solution companies

good luck!!

[jason1980]

Hi - yes you must be totally honest with the companies you owe money to rather than not pay. I am sure they'd rather you paid regular and they received payments rather than you miss and have to be referred to a recovery agency. You must accept though that it will affect your credit rating, cause interest to be added, and have your account on hold until its paid off - but at least you will be paying it off.