Struggling to pay back cards.

SkintBint

I hear that you can approach your credit card companies and say that you are having problems paying back the debts. Is it true that they can convert the balance to a loan and allow you to pay less interest back?

The reason is I am just affording to pay back the minimum a month and the balances never diminish - I think the biggest card is something like £85 interest a month :mad:

I cannot apply for other cards to balance transfer to as I have too much outstanding credit.

NickX

SkintBint wrote: »

Is it true that they can convert the balance to a loan and allow you to pay less interest back?

If your cashflow problems are temporary, then I think you would be best to ask them to freeze the interest for a period of time to give you a chance to get the Capital down.

If you think your problems are more long term, then I think you need to work out a practical repayment plan with them. the CCCS and CAB are very good organisations who offer Debt Management advice for free and will negotiate with your Creditors on your behalf.

Also post this on the Debt Free Wanabee board here - there are lots of people there who have had the same problems that you are reporting and have successfully sorted them. They will be able to give you good advice.

Good Luck

SkintBint

Oh right - how long can you freeze the interest for? Does this affect your credit rating?

Or do you want me to move this to the other forum

gbatey

As I have been with HSBC since I was 18 (12 years ago) I asked them if they could lower my interest rate down to the 'introductory' offer they have which is 15.9%. Believe it or not I was being charged 20% interest! I asked them if they could either freeze the interest for a while or lower the APR which the did immediately; just goes to show you don't ask-you don't get!

NickX

Well there isn't a fixed term - it all depends on what the Card Company agree to. They will want to see evidence that you are struggling and I'm afraid anything like this, or paying less than the Minimum payment will have a detrimental effect on your Credit Rating.

You don't have to move to the DFW (Debt Free Wanabee) board, but they are more geared to sorting debt problems out there. Here is more general Credit Card queries.

NickX

gbatey's reply is good - if they can lower the interest rate that you are paying and you are then able to meet the minimum payments, then your Credit Rating remains intact.

SkintBint

Ok thanks will move the thread!

DestroyingAngel_2

SkintBint wrote: »

I hear that you can approach your credit card companies and say that you are having problems paying back the debts. Is it true that they can convert the balance to a loan and allow you to pay less interest back?

The reason is I am just affording to pay back the minimum a month and the balances never diminish - I think the biggest card is something like £85 interest a month :mad:

I cannot apply for other cards to balance transfer to as I have too much outstanding credit.

Depends who you have your card with. MBNA bought www.loans.co.uk a few years ago, and send their customers who are in financial trouble towards that company. The loans are secured against your property, and the rates are I believe between 8-19% APR. Which might sound like a pretty "normal" APR rate to most of us, but I like to think it helps, if you were on something horrible like 34.9%!! I've checked out www.loans.co.uk, and they're even offering some payment holidays of up to 5 months?!

SkintBint

Unfortunately I do not own a property.