How to approach CC for a rate reduction pls

sashanut

I wonder if someone can give me advice on how to ask/approach CC companies for a reduction in the interest rate they are charging? I tried yesterday with Mint but the stroppy lady on the phone said 'no way'. I have heavy card debts (see my SOA) & just wondered what others experiences were - how do you get a reduction in the rate, if you have mananged it. Do you have to say you have another card to transfer the balance to - even if you haven't - or just ask whether they will reduce your current rate?

Any help gratefully received, I would like to be prepared before I call them...any reduction would be a massive bonus as so far I haven't manenged to get a 0% rate anywhere......& my highest card has 22% I/R
:eek:

JAMIEDODGER

can you list your credit cards with balances, aprs, credit limits and if possible balance transfer rates? also do you have an overdraft? if so what is the apr on that? perhaps a bit of jiggling around might be worthwhile for you, hope this helps

JD x

aliasojo

Normally people would transfer their debts from a high interest card onto another, even for a short while so that their account is clear then they can call their credit card company and will be in a better position to negotiate a rate reduction.

If you have a sizeable balance already, it's not surprising Mint weren't falling over themselves to help. They know they are getting a fair whack from you in interest every month and that you are probably not in the position to do much about it.

As Jamie says above, it would be helpful to know if you have other cards/balances and what their interest rates are.

sashanut

Thanks for the help from you both - I am not sure of the o/d interest rate so will phone & find out - can't tell from internet banking. Here is the scary list of CC/loan bills. All are currently being paid the minimum....

CC1
Bal: £7911.33
a/bal: £1988.67
CL: £9900
IR: 22.48% !!!!!

egg cc (me)

B: £14,001.49
C/L: £15000
IR: 15.9%

Egg cc (him)

B: £7,057.80
C/L: £8,800
A/B: £1,743
IR: 15.9%


EGG LOAN

£10,757.47

IR : 7.7%
£400 P/M
END DATE AUG 08

M&S CC

B: £3,039.95
C/L: £3,500
IR:16.26%

MINT CC
B1: £7,708.37 @ 13%
B2: £1,407.92 @ 18%
B3: £1,429.74 @ 13%

TOT: £10,546. 03

C/L: £12,500

LLOYDS CC
B: £7,851.22 @ 13.13%
C/L: £9,750
A/B: £1,964

BARCLAYCARD

B: £7,340.91
C/L: £8,300
A/B: £944.05

LLOYDS TSB PERSONAL O/DRAFTS (2)

I. O/L £5,500: currently £3915.60 O/D
II. O/L £2,000: " £1842.60 O/D

As you can prob see, can't move one to another since there is not enough space on any of them. I know I have to attack the worst int one first, but hoped to get a 0% or low apr one to move at least one other to - give me some breathing space..

TIA for all your help

JAMIEDODGER

what is the a/balance?

JAMIEDODGER

why do you have 3 balances on mint card? is this 3 seperate cards?

JAMIEDODGER

whats the percentage on the barclaycard? do you know the balance transfer rate for any of the cards, or the fees to BT? oops and finally what are the minimum payments to each of these cards?

sashanut

OK, a/b means available balance ie unused portion of credit - not very much!!

No the Mint card is just one card with the 3 listed balances & differing interest rates - I committed the sin of doing a cheap balance transfer, then spent on the card - something I now know NEVER to do....

the APR on Barclaycard is 12.22%

haven't asked the rate to BT on any of the cards yet...should i be phoning & asking??

Min payments are currently:
CC1: 164.84
EGG1: 282.72
EGG2: 142.22
M&S: 92.
MINT: 237
LLOYDS: 158
BC: 195 ( have just paid another £500 off this) - we use this one for business

Thanks for helping!!

JAMIEDODGER

thanks for that, am trying to work out a way forward for you, BT rates and fees will definately help me to do that.

also, what is the total you can afford each month toward your debt (including your minimum payments. sorry im asking loads of questions but hopefully we can work something out for you xxx

sashanut

Cheers Jamie - hey don't worry about asking loads of questions - they get me to focus on the problems & therefore they do me good! I have never asked any companies about BTs, I suppose I just ring them up & ask if they will do a BT & how much they would charge to do so? Starting with the cheapest one first?

As we are a self-employed small business (just the 2 of us!) our income is really all over the place. Like now for instance, no-one has paid us anything in Jan at all yet...tho we are owed a lot of money. Better say I can pay the minimums +£500 - it could be a lot more but I wouldn't like to promise & then not deliver.

this is great for me, I am now asking the questions re interest rates on CC's overdrafts etc which I completely ignored before...so explaining why we got in this situation..in the first place.

TKS a bunch!! :wave:

JAMIEDODGER

sasha,

im glad to see you so enthused by getting it together!

as far as i can see, this is what we have so far...

bal available credit limit interest rate
cc1 7911.33 1988.67 9900.00 22.48
cc2 14001.49 998.51 15000.00 15.9
cc3 7057.80 743.00 8800.00 15.9
cc4 3039.95 460.05 3500.00 16.26
cc5 10546.03 1953.97 12500.00 18.0
cc6 7851.22 1964.00 9750.00 13.3
cc7 7340.91 944.05 8300.00 12.22

57748.73 9052.25

my suggestion is this:

balance transfer £1800 from both cards 5 and 6 to card 1
card 1 new balance = £4311.33

depending on if there is a fee or not, £800 from cards 2 and 7 to card 1
card 1 new balance = £2711.33 ( you could also Bt from others too but if fee, prob not worth it.

month1, i would pay minimum payments off all (that totalled £1271.78 from your figures) and the extra £500 of card one.
month2, again pay min payments off all but extra 500 to card 1

months3,4,5 the same. this would clear card one which is your highest interest card.

month 6 balance transfer all of card 4 to card one, you should get a much lower rate for this. and as much as you can off card 5 onto card 1 ........

i hope you can see where i am going with this? let me know if you want me to work out anymore xx