Egg Card Interest Rate

kitkatpink

Hi

I'm looking for some advice.

I have a large balance on my Egg Card £6400 (ran up through unpaid maternity leave).

Egg recently cancelled my card and increased my interest rate to 26.9%. I have been paying £150 per month which is above the minimum payment but the balance is not reducing.

From looking into this it appears that the monthly interest charged on this debt is higher than the minium payment - which is 2%. So if I paid only the minimum payment then the debt would actually increase.

I have contacted Egg about this who have basically said tough.

I can't transfer the balance and I can't afford to pay any more.

Has this happened to anyone else or does anyone have any advice?

Moggles_2

Do you or your partner have another credit card besides your Egg card?

GeorgeUK

I would suggest posting on the debt free wannabe board.
We can usually suggest ways of cutting spending and saving money without trimming your lifestyle too much. There is a post that mentions the SOA calculator - if you can put the details of yours in the post it will save a bit of time.

Have you applied for another card to transfer the balance and been refused?

kitkatpink

My partner has an Egg Card too which is at the same rate as mine.

We ran up a lot of debt when my partner was self employed and have spent the last 5 years paying this off through arrangements with each creditor.. Our credit ratings are poor bcause of this so we can't get other cards.

tryinghardtosortit

I also have a large Egg Card balance £8200 and the same as you I am paying 157.00 per month which is not bringing it down and the same have run this up during reduced hours at work due to maternity............. im sure we are not the only ones in this situation, not sure of the answer but nice to know im not the only one.... good luck

Moggles_2

kitkatpink wrote: »

We ran up a lot of debt when my partner was self employed and have spent the last 5 years paying this off through arrangements with each creditor.. Our credit ratings are poor bcause of this, so we can't get other cards.

This is not really a credit card issue then. Please post again on the Debt-Free Wannabe board, as George suggests. You'll get lots of replies & support there

Very best
M

Moggles_2

tryinghardtosortit wrote: »

I also have a large Egg Card balance £8200 and the same as you I am paying 157.00 per month which is not bringing it down and the same have run this up during reduced hours at work due to maternity............. im sure we are not the only ones in this situation, not sure of the answer but nice to know im not the only one.

You're certainly not the only ones, but this applies to all credit cards, not just Egg. Providers reserve the right to vary standard rates. You are notified of any changes and current rates are shown on monthly statements. The best solution, IMO, is to vote with your feet. Have you applied for a new card and been unsuccessful?

Admittedly the best balance transfer deals are usually reserved for new customers, but you don't have to apply for a new card to get new credit. If you play your cards right (sorry, I couldn't resist), you may be able to reduce your costs using a credit card you (or your partner) already hold. For details, please see Martin's *Credit Card Shuffle* article

kitkatpink

Thanks to those who have replied - when I get some time, I'll post on the Debt-Free-Wannabee Forum.

Ellen

kitkatpink

I've emailed Egg asking for them to re-look at the rate - I'll let you know how I get on.