Is it possible to freeze interest on a credit card?

Toosh

I've a large balance on a credit card. The balance is made up from cash advances and the card hasn't been used for some time. The interest rate will be increasing in March taking our monthyly interest payment on the amount to hundreds of pounds. Is it possible to freeze the amount and the interest on the card so that we can pay it off over a set period of time? We're happy to surrender the credit card as we don't actually use it now.

thanks

jonesMUFCforever

Are you in arrears?
Have you considered a loan which unless your credit history is crap will certainly be cheaper than a card with cash advances on it.

I cannot see why there is any reason they should freeze the interest - you have spent the money - have you considered having a clear out either with a boot sale or Ebay and throwing all available cash at the debt to reduce it?

Toosh

No we're not in arrears. The alternative is that it may well financially cripple us. We already have a large loan - undertaken to finance a renovation, which is what the cc debt is from also - so we're unable to get another. We've also been declined another card to transfer the balance. Car boot and ebay wouldn't even cover a months interest I'm afraid!

stephane_2

If they are increasing the interest rate in March have they not giving you the possibility to lock it at current rate if you no longer used the card?

Toosh

stephane wrote: »

If they are increasing the interest rate in March have they not giving you the possibility to lock it at current rate if you no longer used the card?

No my husband called and asked and they said "no". Would it be worth asking again do you think?

stephane_2

Well I would as I was under the impression that now credit providers (credit card) had to give you the opportunity to settle debt at current rate but which would mean that you would not be able to use card again but also to consider may have an impact on your credit rating....unless someone else can bring more clarification regarding your request

Toosh

Not using the card again is fine - as I say we don't use it under normal circumstances, it was just to finance our renovation. The effect on our credit rating is obviously more worrying although in fairness it doesn't seem to be too great at present anyway!

If someone else could clarify that would be great.

jonesMUFCforever

Toosh wrote: »

No we're not in arrears. The alternative is that it may well financially cripple us. We already have a large loan - undertaken to finance a renovation, which is what the cc debt is from also - so we're unable to get another. We've also been declined another card to transfer the balance. Car boot and ebay wouldn't even cover a months interest I'm afraid!

Ok you need HELP now - professional help do not delay do it today.
Ring CAB or national debt helpline and ask to speak to an adviser.
Prepara a statement of affairs - income and expenditure and visit the debt free wannabe board and good luck.

Toosh

Thanks, appreciate your help.

Typhoon2000

Yes with all credit card companies now when they inform you of a rate rise you can excerise your right to keep the interest at the current rate and close down the account to new spending, and closed completely when paid off. There will be no effect to your credit rating as long as you are paying off at least the miniumum amount every month.