Credit card debt

[behind the vertical]

I have two credit cards, one with a balance of £4500 and another with a credit balance of £2350 and a credit limit of £3000.

 

When I took it out, the lower limit card had an interest rate of 39% which increased to 59% and due to the fact that I have been making the increased 'persistent debt' payments has been reduced to 54%. I took out a 0% balance transfer card and was able to pay £540 (the maximum credit limit I was able to get was £600, I have not used the other £60 on the card and I am making the minimum payment, 0% period is 9 months)  to try and reduce the interest. However, on my June statement the estimated interest for July is £135 and the monthly payment is £158.

 

The other card the initial interest rate was 19% but is now 39%. I pay the 'persistent debt' payment but then always need to use the available balance to live on so I am getting no where with it.

 

I have tried without success to get a loan to pay off the more expensive card at a lower interest.

I have no bad debts or missed payments and my credit score is around 560.

I am however, a single mum with two children renting from a housing association.

I work full time but around a third of my income is from Universal Credit. 

I cannot see me ever making progress with these credit cards and due to the age of my children the Universal Credit will stop in 5 years time and I will struggle to meet the payments.

 

I feel I've paid enough interest on these debts, the credit providers have had their monies worth of interest and the hike in the rates is not justified. 

 

I'm considering stopping paying these cards, waiting for a default to be served and then hopefully coming to an arrangement to pay the resulting balance off.

 

What, worries me is that I would be taken to court CCJs obtained and then get visits from bailiffs. 

 

Or should I take a different approach?

 

Thank you in anticipation of your responses

[unclebulgaria67]

I think you need to go down the route of registering hardship with these credit card companies, that the interest is making it unaffordable.  

 

Rather than stop payments,  you should return the credit cards to the companies (but cut them up with scissors) and ask them to stop the cards. Ask the credit card companies to write to you with details of what assistance the are willing to provide you in regard to the outstanding balances.  Then see how they respond.

 

You could reduce your next repayments based on affordability, but better to wait for a response before making next payment.

 

 

[behind the vertical]

Ok, thank you

 

[dx100uk]

bailiffs have no right of forced entry on consumer credit and their involvement is years away IF at all

 

the debt would have to be sold on to a powerless DCA first [original creditors do not do court]

 

and them take you to court

you fail to pay [by payment arrangement or full in 28days from judgement]

then they'd have to return to court to get bailiffs involved..

 

have a look in our debt collection section of our library

there is a pro rata letter which asks creditors to freeze all interest and refrain from charging penalties as long as youkeep up your offer.

pers id offer £25PCM or less to each

 

if they fail that test 

then send the 2nd letter there 

they MUST help you.

 

sorry for asking by why are you living off a credit card balance..bad idea it attracts interest.

use your banks debit visa card. as you now have spare cash from not paying +£100's to the cards each month

cut them up and burn them!!

 

 

 

[behind the vertical]

Thank you. I've been looking into the asking them to freeze the debt. I had no idea they are obliged to do this.

 

I will have a look at the templates

[Simon1959]

On 13/07/2019 at 15:29, behind the vertical said:

Thank you. I've been looking into the asking them to freeze the debt. I had no idea they are obliged to do this.

 

I will have a look at the templates

 

[Simon1959]

This persistent debt payment that you have to pay is there not an option to not pay it and continue paying at the agreed interest payment 

I'm sure vanquish gave me the option if I couldn't afford the higher payments 

Luckily I was able to balance transfer to a 0% card and bin vanquish it's the high interest rate that's the problem with these cards not persistent debt