After browsing the web and YouTube looking for answers I found this platform and have spent the last couple of days or so getting my head around it. Firstly, a thanks. I was worried sick and it was having an impact on my day to life. I know I have an issue, but through reading lots of posts I feel better and more positive about it all.
So my issue is simply I now can’t afford the minimum payments on my credit cards. I was someone who listened to Martin Lewis a lot and shifted debt around on 0% cards. Ultimately I still spent and the top and bottom of it is all offers have ended and 0% interest seems a long way away. I utilised a COVID bread on some of the cards which painted over the cracks really.
All of the below cards are still with the creditors. There is only 1 as it stands that may be defaulted and this is detailed.
Tesco credit card. Balance £1438. Letter received on 7/1 stating my account was suspended. A day or 2 before I had sent payment of arrears and payment which I thought would put my account back on track. I rang up when I got the letter panicking asking what the next steps were. The fella said he would send an income and expenditure sheet to work out what I could pay etc and seemed fairly relaxed about it. He then stated to me he would freeze the account for 30 days. I received a letter yesterday dated 13/1 stating they accept my request for breathing space (I didn’t request it, unsure if this matters). On my credit report it actually shows as in arrears but on the banking app it shows that it isn’t, my payment was received and that another statement was produced on 11/1. So unsure what’s what in honesty with that account
Virgin credit card. Balance £8129 (£405 in arrears)
M&S credit card. Balance £4633 (£334 in arrears)
Halifax credit card. Balance £3989 (£105 in arrears)
Barclaycard credit card. Balance £3278 (£188 in arrears)
HSBC credit card. Balance £1121 and up to date.
My finances haven’t changed, I was spending around £175 a month with the various 0% rates etc. I can still afford that. I only missed a payment from October 2020, until then I had never missed a single payment. All cards are within the last 6 years except the Barclaycard one which was originally opened in 2005.
I was seriously considering looking in to an IVA but having read posts I know it isn’t something you guys recommend. My next thought was looking at the pro rata letters and sending them to creditors.
Any help and feedback would be very much appreciated, and thank you for taking the time to read this long post.