Need advice on three credit cards I can no longer manage

[Susiebling365]

Hi, I am looking for help on behalf of my daughter , if this is not ok then I will get her to open her own account, but she has a lot on divorce wise at the moment and I suggested you guys on here could help ease things a little with credit cards. She has 3, Cahoot, Lloyds and Co op . Undergoing a stressful nasty divorce at the moment, and her life with her ex provoked the use of cards. Briefly , the husband wants half of the house and it not obliging regards solicitors fees. She cannot afford the solicitors fees together with the three credit cards. She also has a teenage daughter still at college and a son who live with her.

She has Lloyds credit card, which she is paying on a Direct Debit of £110 a month and a balance of £3586.51

Cahoot paying a minimum DD and a balance of £7975

Co op which she pays a little over the minimum payment online . a balance of £4571.00 . this one is also her current account into which salary is paid. I have advised her to move her salary to another account.


Being a member on here for the past 2/3 years, I ve advised her to send for her Data on all of these accounts. She does not remember having any paperwork so I thought that would be a good place to start?

She is after reducing her out goings as she has the expense of a solicitor, and the possibility of having to buy her husbands half of the family home


thanks Susiebling

[MrsD]

Re: Need advice on three credit cards I can no longer manage

Susie, not problem with getting the info, but she will have to be very careful as I presume she will need to finance the house purchase if it becomes necessary.

She will need to keep her record clean until she's sorted this all out.

[Susiebling365]

Re: Need advice on three credit cards I can no longer manage

Susie, not problem with getting the info, but she will have to be very careful as I presume she will need to finance the house purchase if it becomes necessary.

She will need to keep her record clean until she's sorted this all out.

Yes we understand this, in the first stages of the divorce and financial sorting out. but knowledge is empowering . At the moment she is still paying the CC but it is starting to hurt. She may go down the route of offering them a FF, not sure yet, She has found she can get a small mortgage, as the house is paid for.

We just want hold of as much knowledge as possible to make the best move forward.

[MrsD]

Re: Need advice on three credit cards I can no longer manage

I would do nothing until that mortgage is up and running. we all know what it's like to struggle with ridiculous balances on credit cards. Could she look at the possibility of moving it to an interest free card to give her time to get a bit sorted?

[Joanna Connolly]

Re: Need advice on three credit cards I can no longer manage

A possible solution maybe to increase the mortgage to repay one or more of the credit cards thereby saving the monthly payment. It is important she maintains if she can payments on the credit cards until at least she obtains the remortgage,

Even if a credit card is unenforceable the creditor will post negative information at the credit reference agencies which would affect any mortgage application in the short term.

[Susiebling365]

Re: Need advice on three credit cards I can no longer manage

Thanks Mrs D and Jo....I wanted other opinions before I/we did anything.
We will hang fire on contacting the credit card ppl for now. I am trying to find her a way to reduce payments until the house is sorted. It is paid for which is why the husband is after half. My daughters problem is a not so well paid clerical job and these credit cards, added with 2 teenagers and now solicitor fees.

I did not know if she could remortgage or use the equity in the house being as its a joint mortgage .... that is one option.. But I will put Jo s suggestion to her.

She has to respond to a petition or something today ( its all changed a bit since my divorce ) Its all a bit cat and mouse at the moment.

If she goes for paying one of the cards off, is it possible they would accept a one off payment? or is this just for long defaulted troublesome debts. At the moment she is keeping them happy with the minimum amounts ?

Thanks.....S