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Would It be reasonable to send Credit Card Company letter..

(15 Posts)
fruitandbarley Fri 12-Apr-13 12:57:16

Would It be reasonable to send Credit Card Company letter asking for reduced payments while I am on maternity leave for 6 months. I think I am really going to struggle otherwise.

I was thinking I would offer to pay them half of what I am paying at the moment (minimum payment).

LIZS Fri 12-Apr-13 13:00:54

Are you still spending on it , how much do you owe? You should ask for interest to be frozen but whether they will reduce minimum payments I suspect not.

fruitandbarley Fri 12-Apr-13 13:13:31

Thanks

I am not spending on it (well one transaction of £100 in the last month as emergency, but nothing for ages before that), and also been paying a few chunks of money off as I've had it aswell as the minimum to try and get the balance down. I owe about £3800.

How do I go about asking for the interest to be frozen? And would this affect my credit rating ?

LIZS Fri 12-Apr-13 13:17:32

Write and ask them or see CAB/MSE for a sample letter. But you can't spend on it again .

LadyKooKoo Fri 12-Apr-13 13:21:07

When does your maternity leave start? I think they have 12 weeks to respond to letters so if they cross over and you miss payments it won't do you any favours. If I were you I would call them and speak to them about it. Have you looked into doing a balance transfer to a card with 0% interest?

fergoose Fri 12-Apr-13 13:26:07

can you not do a balance transfer to a 0% interest card?

fergoose Fri 12-Apr-13 13:26:40

(sorry, Ladykookoo - didn't see you had already suggested that!)

fruitandbarley Fri 12-Apr-13 13:35:20

I applied to do this but it was turned down for some reason, ( i was in my overdraft at the bank, that might have been it) and I didn't think it was a good idea to apply for another so soon afterwards.
I also went on money supermarket and chose the best deal, which i wonder if they are very choosy who they say yes to.
Last time I applied was october.

Would freezing the interest adversly affect my credit rating do you know ?

Thanks for your help by the way. Much appreciated.

Rockchick1984 Fri 12-Apr-13 13:46:11

Yes it will affect your credit rating, however it's better to reach an arrangement with them rather than simply not paying.

I'm sure you've already looked at all of your other outgoings to see what you can cut.

My understanding is that credit card companies are not particularly flexible on reducing the minimum payment.

You might be better to transfer it or to take out a loan over a longer period to pay it off.

Whatever you do, don't start missing payments and making your credit history worse.

fruitandbarley Fri 12-Apr-13 13:57:34

Wasn't planning on not paying them at all, I have always paid on time, and still plan to do so, it would just be a real struggle for those 6 months thats all.
I am well aware of the importance to keeping my credit history good, hence me not keep applying for balance transfers etc..

I just wondered if it was something they would be likely to say yes to for that period, and if they did if it would affect my rating, which it sounds like it will.

I don't really want to take out a loan over a longer period, I am hoping to be able to pay it off in a few big chucks when I'm back from maternity leave anyway.

LadyKooKoo Fri 12-Apr-13 14:20:07

Do you have a mortgage? (Depending on your answer will depend on where this goes).

fergoose Fri 12-Apr-13 15:07:45

I would check your own credit rating and then go from there - MSE boards have loads of advice about balance transfers. If you last applied in Oct I don't think another application now will have an adverse effect. I wouldn't increase your mortgage though to clear a credit card - much better it is unsecured debt than secured on a property.

fruitandbarley Fri 12-Apr-13 19:08:03

Yes i do have a mortgage, but would not want to extend it really.
Sounds like having another attempt at a balance transfer might be a good idea.

LadyKooKoo Fri 12-Apr-13 22:06:06

Most mortgage companies will let you have a mortgage break whilst on maternity leave. If it were me I would speak to the mortgage company about having a break for six months and then putting the money you would normally pay to the mortgage each month to get the credit card cleared off. The interest you pay on the mortgage, is, I assume, less than the interest you pay on the credit card?

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