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F***- I'm in big trouble

(61 Posts)
Frokoko Wed 18-Sep-19 16:16:58

I've been burying my head in the sand and not paying my credit card bill off, for months since my ex husband left me, it's at 3k- mostly used for deposit for new flat/baby stuff.. I work but I want just over 1k a month.. 500 rent, then bills, not much left over.. the minimum payment is 98 a month which I am going to pay this month but they just keep adding Interest!
Have no one to ask for advice so I'm asking you lovely people what can I do?! I can't get a balance transfer card I have tried that.. 100 a month is going to take like 3 years to pay 3k off? Any way to earn some money around job? Got a 2 year old so any internet jobs? Thank you for reading! I'm really stressed!

Soola Wed 18-Sep-19 16:18:52

www.moneysavingexpert.com/loans/debt-help-plan/

Passthecherrycoke Wed 18-Sep-19 16:20:29

Can you afford the minimum
Repayment? If so, don’t worry now. Give yourself some time and space to recover from all your recent upheaval. In a years time you might be earning more or you might’ve had a windfall!

If you can’t afford £100 a month you need to calculate what you can afford, then give them a call and explain. That’s worst case scenario though it’ll affect your credit score
Etc

Soola Wed 18-Sep-19 16:20:34

www.moneysavingexpert.com/news/2016/07/stop-paying-interest-on-credit-card-debt-/

Nottrueatall Wed 18-Sep-19 16:21:50

You can write to them and ask them to freeze the interest if you're struggling. Explain the issues you're having and tell them what you can realistically afford to pay, eg, £50 pcm. They should be happy to do this.

fairydustandpixies Wed 18-Sep-19 16:22:43

Oh, please don't worry. I've been where you are, it's awful.

Martin Lewis has a template letter on his website that you can use to stop interest and offer a repayment plan. If you can only afford £1 a month, then they would rather accept that and you communicating with them than not hearing anything from you with no payment at all.

The worst thing is being an ostrich, it's okay, deal with it head on and just offer to pay what you can afford.

Sending you flowers and a hug!

Dairymilkmuncher Wed 18-Sep-19 16:24:45

Could you visit your local credit union for advice I think you can get loans from them to consolidate your debt but you would have had to be using them to get your wages paid into for a while.

If you're looking from work from home jobs stay clear of MLM and don't put out any money. Maybe something like ironing?

Greeni Wed 18-Sep-19 16:26:23

Contact them! Don’t be scared, offer what you can afford, ask to freeze interest and look at it again in 12 months

Flyingkites123 Wed 18-Sep-19 16:27:32

Could you get a loan and consolidate your debt? That would mean a much smaller interest rate.

Have you checked to see if youre entitled to anymore benefits now your situation has changed?

Frokoko Wed 18-Sep-19 16:29:32

I can afford to pay the minimum just about though.. I might write to offer 50 a month for 6 months or something to try get my head above the water?
I'd prefer not to go down the debt help route as in the future I would like to take our a mortgage and this would affect it badly right?
I'm trying to reduce my daughter's nursery fees by moving her but then it looks like I would have to change my working hours and my job isn't very flexible, and I can't take any overtime as this will just cost me in childcare fees! It's a no win I think I'm just going to have to toddle along and hope I don't drown!
Feels good to let some steam out lol I don't have anyone in real life anymore!

Thecapturefan Wed 18-Sep-19 16:29:36

Pay just the minimum but whatever you do keep paying it otherwise in 2/3 years when you’re in s better place financially with no debt you’ll still have a shit credit score. A bad credit score haunts you for years.

Aquamarine1029 Wed 18-Sep-19 16:30:33

Call them right away! Most credit card companies are more than willing to help customers who have fallen on hard times. You demonstrating that you absolutely want to pay your debt is really important. Ignoring it and not contacting them is the worst thing you can do. Try not to let this stress you out too much. You will get through this!

meccacos2 Wed 18-Sep-19 16:31:10

@Nottrueatall

You can write to them and ask them to freeze the interest if you're struggling. Explain the issues you're having and tell them what you can realistically afford to pay, eg, £50 pcm. They should be happy to do this.

Why should the credit institution be happy to do this??

They make money by freezing interest, it’s their entire business model.

Do you mean to say I can just ring up my credit card company and tell them times are tough and the struggle is real and they will say no problems, we would be happy to freeze your interest and how about you just pay us back half of what your minimum repayments were previously. 🙄

hormonesorDHbeingadick Wed 18-Sep-19 16:31:31

Contact step change they can arrange a repayment plan on your behalf.

meccacos2 Wed 18-Sep-19 16:31:41

make money by charging interest, rather

Passthecherrycoke Wed 18-Sep-19 16:34:47

@meccacos2 because otherwise they might not get anything

Mary1935 Wed 18-Sep-19 16:38:26

Hi OP have you checked you are getting all benefits - working tax child tax credits.
Citizens advice will be able to help you or look up debt agencies in your area.
Re benefits - check if you have a local welfare rights or look on Entitledto website.

OneForMeToo Wed 18-Sep-19 16:39:55

After so long it’s considered a persistent debt and they have to help you find ways to get out of persistent debt which can be freezing interest or removing interest as well as blocking the card so you don’t spend more on it. As long as you pay the minimum your credit file will be ok though.

MissGiddyPants Wed 18-Sep-19 16:42:09

Offer them some money as a final settlement. I did this with Barclaycard years ago. Think I owed them about £700 so I offered them £240 to go away. They took it.

However I have been on a credit blacklist ever since which doesn’t bother me. Even store cards turn me down.

margaritasbythesea Wed 18-Sep-19 16:42:47

We've got a thread about extra jobs to be found online here £10 a day thread. Check out Crisp, Appen and Cambly in particular. None of them are very quick fixes though and reading the threads will probably take some time.

SpockPaperScissorsLizardRock Wed 18-Sep-19 16:42:56

Sorry I can't help with debt advice but for internet jobs/earning opportunities try here

www.mumsnet.com/Talk/legal_money_matters/3680934-september-earn-10-a-day-thread

and here

workaroundthechildren.home.blog/

Fluffycloudland77 Wed 18-Sep-19 16:44:26

Because it’s better than customers going bankrupt & them getting nothing.

SinkGirl Wed 18-Sep-19 16:45:04

If you want a mortgage at some point in the next six years, do not miss any more payments, do not default on the debt. This will screw up your credit history and impact your ability to get a mortgage.

Contact the money advice service, or step change and get some advice on the best course of action,template letters etc. It’s not insurmountable. You can get through this.

Do you have anything you can sell (kids equipment they’ve outgrown, toys, clothes etc) to cover a few of your payments over the next few months?

AttilaTheMeerkat Wed 18-Sep-19 16:46:10

Do give Stepchange a call www.stepchange.org/

BadTigerKitty Wed 18-Sep-19 16:48:42

It'll take even longer than 3 years to repay a that rate. Use whatsthecost.com/snowball.aspx to look at the repayment.

One recommended trick from money-saving expert forum is known as the 'standing order trick'. First rule: stop spending on the card. Then: cancel your dd to the credit card and set up a standing order at this month's min payment. Instead of reducing min payments as your balance reduces (which costs a hell of a lot more over time) you pay bigger and bigger chunks off the principal each month.

But, on your budget I think you'll struggle to afford 100 per month. And you'll end up spending on the cc again and be in debt for longer. Try calling a debt help charity for advice. They can help you with letter templates to ask for an interest freeze for a period of time.

Finally, it sounds like you may have missed a few payments already, in which case a debt repayment plan wont make much difference, but will reduce the burden on you abo give you a manageable plan to repay.

The forums at www.moneysavingexpert.com are a fantastic resource too. You'll get loads of support and advice over there

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