Freezing charges with good credit rating

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Hello,

First post on this forum. Be nice to me!

Anyway, big debt problem. Got myself in a mess with credit, blah blah same old story. I was doing fine on the repayments (when i say fine I was paying out over £900 a month - half my salary). Recently my employers told me i've been overpaid for the last five years - geniuses - and I entered negotiations with them for repayment etc. Cutting a long story short I'm now £200 a month net worse off. This has left me struggling to meet monthly repayments.

To date though, after many sleepless nights and constant maneouvering of my cards i've paid off and closed three accounts, but I still have five left, two on ridiculous interest rates (22% and 21%). I have a good credit rating as I've never missed a payment. However - great news, my wife is having our first child. Bad news - This will reduce me to minimum monthly payments on my cards which will never shift the debt. With my cut backs (and a few quick calculations) I've just jumped from 7 years to pay off everything to 15 years. Not good.

I can't get any other lower interest cards (I have applied and been turned down) due to having too much unsecured debt. I want to contact my credit card companies and ask them to freeze my interest rates, but agree to keeping my minimum payments and destroying all my cards. Do you think this will work? I probably am trying to 'have my cake and eat it' as I want to keep my good credit rating but freeze my interest. Not sure if they will go for that. Worth a try or a waste of postage stamps?

Thanks for reading.

Graeme
Debt Sept 2007 (1st LBM) - £63,000 :embarasse
Started DMP July 2012 (2nd LBM) - £34,000
DFD (currently) - 12 years! :o
"Failure is not falling down, but refusing to get up."

Comments

  • jamalfatty
    jamalfatty Posts: 960 Forumite
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    When you say freeze, do you mean keep the APR as it is now with no increases? Or do you mean not charge you any interest at all on your outstandings? If it's the latter, I think you'd have little to no chance of this happening, particularly with a good payment history - put yourself in the bank's shoes, what do they stand to gain from allowing this?

    Always worth asking though, nothing ventured and all that, wouldnt hold your breath though
  • Innocent_Guy
    Innocent_Guy Posts: 5,369 Forumite
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    If your credit rating shows "Arrangment to pay" this WILL damage your CR
    Bank Accounts - Barlcays Premier[/B] - £1000 o/d, HSBC - £200 o/d- First Direct - £500
    Credit Cards - Barclaycard £2000 - Silver Card £1300 - Flybe £7500 - HSBC £1000 - First Direct £2500 First Direct Gold £3000
    6 credit accounts closed in 2010!

    Official SOS Club number 001 - Dry until 01.07.10
  • talisker78
    talisker78 Posts: 213 Forumite
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    Thanks for that.

    Would I be better just biting the bullet and going for a DMP? If I will damage my Credit rating anyway I might as well accept the 'whole package' as it were and reduce my payments.

    What I meant before was asking them to zero my interest rates. Pretty stupid request - as you say, what do they have to gain if I keep paying?!

    I think I'll need to accept that my rating is going to get a good thumping in order for me to meet these debts. Oh well. I got myself into this mess, i'll get myself out!

    thanks for the advice
    Debt Sept 2007 (1st LBM) - £63,000 :embarasse
    Started DMP July 2012 (2nd LBM) - £34,000
    DFD (currently) - 12 years! :o
    "Failure is not falling down, but refusing to get up."
  • Innocent_Guy
    Innocent_Guy Posts: 5,369 Forumite
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    talisker78 wrote: »
    Thanks for that.

    Would I be better just biting the bullet and going for a DMP? If I will damage my Credit rating anyway I might as well accept the 'whole package' as it were and reduce my payments.

    What I meant before was asking them to zero my interest rates. Pretty stupid request - as you say, what do they have to gain if I keep paying?!

    I think I'll need to accept that my rating is going to get a good thumping in order for me to meet these debts. Oh well. I got myself into this mess, i'll get myself out!

    thanks for the advice
    DMP will damage your CR for 6 years however it may be worth it as your child takes priority. I assume that you don''t want anymore credit so may be worthwhile.

    Best of luck
    Bank Accounts - Barlcays Premier[/B] - £1000 o/d, HSBC - £200 o/d- First Direct - £500
    Credit Cards - Barclaycard £2000 - Silver Card £1300 - Flybe £7500 - HSBC £1000 - First Direct £2500 First Direct Gold £3000
    6 credit accounts closed in 2010!

    Official SOS Club number 001 - Dry until 01.07.10
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