www.iva.co.uk

I don't know if this is a silly question, but I have got to ask it as I personally don't know the answer![:I]

I have a 0% credit card that is maxed out at £4700. Next month the 0% finishes and the interest starts [:0]. The statement says that the interest next month is basically £50, I cant afford to pay anything to this at the moment so it looks like the total will be £4750 next month. My question is what happens then? because it will be £50 over the credit limit. I have never had a credit card over the credit limit, I have lots under but not over. What do the credit card company do when you are over the credit limit.

Sorry if this is a silly question!!!![:I][8)]

they apply additional charges for going over the limit. Are you at the moment proposing an IVA.

Hi and welcome,
well to answer the question, they will charge you an over limit fee and interest on the balance, including the over limit fee and probably charge you for the letter telling you thats what they are doing.

By the way, there are no silly questions...so feel free to ask whatever.

Sounds like you are struggling generally, and if you are looking here, then maybe looking for more advice than that questions suggests, please feel free to ask.

Thank you for your quick reply. So they just keep applying extra charges and the whole thing just keeps building up? I have just got intouch with a IVA firm last week

There will be letters and phone calls and the debt will increase. However, the other debts you have such as loans or overdrafts will also increase as interest and charges do not stop until the proposal is accepted by creditors. This is really immaterial because if you are speaking to an IP you are already insolvent and if the debts are £30k, £31k or £50k there is only a certain amount of money you can afford to repay and the balance is written off after 5 years. Within a few weeks you should have had a proposal to creditors and hopefully your debt problems will be resolved.

any charges they add on now will be taken care of by the IVA so no need to worry. If you get any letters just forward on to your IP. If you have already been in touch with an IVA firm then it should not be too long before you get your IVA set up.

Thank you for your comments, they have really helped me as this "debt business" is scarey stuff.

You need to have a chat with an IP and give him/her details of all your personal and financial circumstances and particulars.

Visit www.iva.com for reviews on firms and practitioners and select one or two to have a chat with.

They will give you the appropriate advice and it is free.

Then all your questions should be answered. Let us know how you get on Helpme27.