Hello

I am currently not working but am looking for a new job, so my income is much lower for a short while and so I have agreed with my creditors (3 credit card companies) to pay a reduced amount each month for no longer than 6 months.

I received a letter from one, though, and it came across as quite threatening and there's one statement that I do not understand. I asked a consumer credit charity and they wouldn't tell me without me asking for a debt management plan from them, which isn't what I need (as I said I've already arranged things with my creditors myself and it's only temporary anyway).

Does anyone here know what the following means, and can you explain to me in simple terms please?

"We will now accept monthly payments of £30.00 on the condition that all arrears are paid and your account is within the credit limit WITHIN 3 MONTHS OF THE DATE OF THIS LETTER."

Does that mean within 3 months I need to make up any amount that's accrued that's between my payments and the minimum payments? Or does that mean I have to clear my balance within 3 months? I know that they can't pressure me into paying more than I can afford and that they do tend to send out these letters to sound more threatening than they actually are, so I'm not too concerned (hopefully I'll actually have the balances cleared within 3 months anyway, as I said this is just a very temporary measure) but I'd like to understand what that statement means.

Would appreciate it if anyone can tell me!

TIA.

Spiderpig

Hi Spiderpig

I take this to mean that you have to pay the difference between what you actually are paying and the minimum, as well as anything that remains over your credit limit.

But the only people who can tell you for sure is the cc company and I'd suggest calling them.

Lottie

CL of Money Matters

That makes sense.

I shall give them a call anyway.

Thank you, Lottie :o)

Spiderpig