We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Fixed Payment Arrangements - Somethings To Be Aware Of
ICan'tStandIt
Posts: 455 Forumite
in Credit cards
If you agree a fixed payment arrangement with your credit card lender, ie paying less than the minimum for an agreed period and having interest waived or reduced, you should be aware that they may consider your account as closed and may not re-open it when you clear the balance.
You should also be aware that they may stop sending you statements, which will make it harder for you to keep track of the amount that you owe -although I don't think that this is their motive behind this, it's just what some of them do - so you need to keep a regular check on this yourself.
If you agree a fixed payment arrangement, make sure that you're aware of the implications of accepting this (credit score etc) and also make sure that you've explored all the other options.
Do you have PPI or similar ?
If you do, but you can't claim on it, make sure that your lender cancels it or it will continue to charge monthly and eat into the amount you're paying.
Your lender will also see it as your responsibility to cancel any continuous payment authorities eg. AA, Sky etc. What with the combination of not receiving statements, making smaller than normal payments and other charges going on that you might not be aware of, it's possible to end up owing much more than you started with.
I just wanted to point out some of the pitfalls of fixed payment arrangements that lenders seem to prefer to let customers find out for themselves.
You should also be aware that they may stop sending you statements, which will make it harder for you to keep track of the amount that you owe -although I don't think that this is their motive behind this, it's just what some of them do - so you need to keep a regular check on this yourself.
If you agree a fixed payment arrangement, make sure that you're aware of the implications of accepting this (credit score etc) and also make sure that you've explored all the other options.
Do you have PPI or similar ?
If you do, but you can't claim on it, make sure that your lender cancels it or it will continue to charge monthly and eat into the amount you're paying.
Your lender will also see it as your responsibility to cancel any continuous payment authorities eg. AA, Sky etc. What with the combination of not receiving statements, making smaller than normal payments and other charges going on that you might not be aware of, it's possible to end up owing much more than you started with.
I just wanted to point out some of the pitfalls of fixed payment arrangements that lenders seem to prefer to let customers find out for themselves.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards