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!

CC v "repayment account"

Hi

Just had a call from one of my CC companies offering me a repayment account. Not heard of this before - has anyone else? I am nearing my limit (£6000) on my CC and paying 15.9% purchases and 21% cash advance (have transferred as much as I can onto two low LOB cards and can only make min payments each month i.e. it's a struggle). The account will work as follows:

Current balance of £5700 transferred to repayment account

Current card reduced to limit of £100 (from £6000) - would cut this up anyway.

New interest rate of 11%

Have to make a minimum payment every month by s/o but can overpay at any time.


Does anyone else have experience of this type of arrangement? It sounds like a good idea to me. I'm pleasantly surprised they phoned up to offer it - after all it's less interest in their pockets each month.

Comments

This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.5K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.5K Spending & Discounts
  • 245.5K Work, Benefits & Business
  • 601.4K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.