advice needed on credit cards

niknax2955

I have five credit cards with large amounts on. I am finding them difficult to pay back but am so far managing. However, can I just contact one of them to ask for them to freeze the interest or do I have to contact all of them with a payment plan.

The credit card is with CITI and I have called them twice to ask for a reduction in APR as it currently is 24.9 and they wanted to jack it up to 34.9 apr. They have informed me that they will not lower the interest rate. But will get someone to call me. I have printed out the letter about paying each creditor an amount but wondered can I just send this to CITI without sending it to the other credit card companies. I so far.....have not missed any payments on any of my five credit cards, but I am feeling the pinch due to over spending and using one to pay off another.

Any advice would be really helpful as I keep waiting for CITI to call me.

thanks

Nicola

TheLazyOne

There is nothing stopping you from contacting one lender and asking them to freeze the interest. However, if they have already said they wont lower the APR is there any reason for them to freeze it completely. I expect that in order to consider freezing it they will require more information, such as your income and expenditure and total creditors. You may have to enter into an arrangement with them in order to completely suspend the interest, which will be shown on your credit file.

You are currently in a situation which many people find themselves in; you are not in arrears and are making payments therefore dont fall into the criteria for reduced payment arrangements, which would include reducing or suspending interest, but lenders are unlikely to reduce interest until the account is in arrears, since until that point you are not considered in financial difficulties. It is likely that whilst payments are being made each month and the account is up to date they will refer to the terms and conditions of your account which states the APR is applicable and can be changed at any time.

Tixy

Creditors will only agree to freeze interest if you can demonstrate that you cannot afford to meet your monthly minimum repayments and that you are treating all creditors the same. They would expect to see an income & expenditure account to back that up. Even then not all creditors agree to freeze interest, and as you are then paying less than the contracted minimum amounts you would then be defaulted on your credit report.

With regards to increasing the rates - I assume you know you can opt out and have the account closed but continue to pay off the debt at the existing rate?