Will creditors really freeze interest if you tell them you are struggling?

[TotorosOcarina]

I mean catalouges and loans?

I just can't see a catalouge that gets 40%apr just stopping that, thats where they make their money surely?!

DH hasn't been working for years but we have kept up payments but everything is getting super tight now and all I'm paying off is the interest - I'm getting nowhere

And still relying on the catalouges

Sometimes they will, yes. If you map it all out for them; income and outgoings and make them an offer that is in keeping with that they may do. TBH I would get all that together and get down to the CAB and they will do a letter for you. Worth a try!

They did for us several years ago. You need to put in writing your situation and how long you want the interest frozen for. You need to make sure everything is in order and you know all your borrowings and have a plan to get back on track. They would prefer to get their money back with no interest for a while than for you to go bankrupt!

Go to one of the debt counselling organisations that will help you free of charge, it will affect your credit rating though.

Hmm, thanks,

we were seriously looking into a form of bankrupcy as its really getting too much,

but I'd like to keep several of my smaller catalouges as I get the kids clothes on them and will be a bit buggered without them.

I might just hold out as my big loan (£200 per month) finishes december so I could pay off the others a lot easier then.

Thanks for the imput.

Well if go down bankruptcy route I don't think you will be able to have catalogues anymore......go to the CAB or I think it's the national debt service or something that is free of charge, do not make money out of you, do not give you another loan etc they can talk you through the option such as IVA.

CAP also do free debt counselling.

Thanks, I'm only young and don't want to bugger up my credit on stupid catalouges.

I think I will hold out and try and pay it back in the new year.

It's not forever only a few years.

Please go and talk through your options, you may well be able to get the interest stopped but providing you pay what is owed in full it may be fine and not affect your credit rating.

It is so so so worth talking to the debt help people it will be confidential and they know all the legal side of it.

Thanks, I might.

The creditors don't even know DH isn't woring as when the accounts were opened / loan was gotten - he was.

Have a look at the CCCS website.

Do a debt remedy plan.

If you go BR you will also lose the ability to use catalogues but your given a clothing allowance.

Please take professional advice.

I don't think any catalogue company will stop interest and permit you to keep using the account.

However, a debt advice charity would help you to prepare a financial statement that would give you a budget covering all your essential outgoings. It would mean not living on credit, but saving out of that budget for bigger things you need. Meanwhile, the income not accounted for in that budget would be distributed between your creditors until you've paid it all off. It may not even take you that long, if you do actually have some money each month to make payments with.