Freezing Credit Card Interest

djtwingo

I have cards with Barclays, Halifax and Royal Bank of Scotland.

I am able to afford to pay £25, £60 and £60 respectfully which is approx 2 x minimum payment. I have been paying minimum payment for at least 12 months so have not really cleared much until now.

I have written to all three providers asking them to freeze the interest and close my account. I have returned my cards to them.

So far Barclays have not replied but the other two have told me that as I can afford the minimum payment, they will not freeze interest charges.

Can any one offer and help or suggestions as to how I should approach them with a second letter?

Thanks in advance.

gfplux

If you can afford every month to pay twice the minimum payment on all the cards then in principle you do not have a problem
Are you now living within your income?
If you are then in due course you will pay of the credit cards and be debt free
Good luck

djtwingo

Thank you for your kind words.

I have paid minimum for quite some time and on the Halifax card as an example, my minimum is £40 and I get £40 worth or charges added! I am now paying £60 per month so in effect I am only clearing £20 off the debt each month.

I was hoping to avoid taking so long to clear the debt and wondered if anyone had a similar situation or advise.

Thanks in advance.

mo1_2

are u getting late payment charges?

Chrisblue1962

Hi, if you wish to clear the debt off the three cards, you need to do the following, which is often called "Snowballing"

1. You need to determine the interest rate for all three cards and amount of minimum payment for each card.is and then put them in order from highest APR to lowest APR

2. Pay minimum payment plus an addtional amount to card with highest APR (Card 1) and then minimum to other two cards (Cards 2 and 3), which presumably have lower APRs - this is so you are maximising payment on the most expensive (NOT necessarily highest) debt.

3. Once Card 1 is paid off, use free cash to make additional payment off card with next highest APR.

4. Once Card 2 is paid off, use money previously paid to Cards 1 and 2 as additional payments off Card 3.

If you can, do balance transfers onto card(s) with lowest APR first BEFORE you start "snowballing" so that you are reducing the interest level charged upon as much of the debt as possible.