Option to close CC account and repay mthly

OverspendFool

Hi. I'm new to the forums and have looked for previous threads on this subject.
I'm on a DMP with CCCS for my personal debts which has another 3 years to run before I'm debt free.
My husband has his own CC, close to the limit but he pays every month, sometimes extra.
He has recently received letters from HBOS stating that they are increasing the interest rate but he has the option to close the account and maintain the current interest rate whilst the debt is paid off.
Does anyone know if there is a catch to closing the account? As I'm already on a DMP we can't afford to make the wrong decision.

I'd be pleased to hear from anyone that has already done this or knows more about it.

Cheers.

oceanscape

There's no catch. You have two options:

1. Leave the account open. The benefit of this is that you can continue using the card, but the negative is that it will be at the new interest rate (and the existing balance will switch to this new, higher interest rate too)

or

2. Close the account. You can no longer use the card, but the balance will remain at the current interest.

thriftymomma

No catch. Lots of people have had this sort of offer recently. Banks are streamlining their customers!