Egg CCA - Interest Question

Neenie_o

I've never started a thread before so please bear with me.....

I don't owe a massive amount of money on my credit cards, and I can make the minimum payments (and more) each month fairly easily. I have it quite easy as I live at home at the moment and don't pay rent - but I am hoping to move out soon and if I continue to pay what I'm currently paying on my credit cards I won't be able to afford rent, council tax and food - I could if I were paying the minimums, but who wants to do that?!

My question is regarding my Egg card. The limit (which I reduced recently from £2500) is £1500 and I owe just under £1000 on it. The interest rate they are applying is 2.008% Per Month (I'm not sure what that works out to APR-wise). I'm currently going through the various CC companies and asking them to review my interest rate. MBNA and Egg are pretty evil though (and the highest!) and refuse, probably because I am not struggling with payments and therefore haven't missed any. I opened this account with Egg on 10/02/04 so I was wondering if I could force them to do anything with the interest rate if the CCA is not in order (as I suspect it isn't).... I haven't sent them any letters yet but I successfully reclaimed my PPI last year with very little fuss and only one phonecall.

Does anyone have any advice or am I just going to have to stick with this interest rate and suck it up?

Neenie_o

Anyone?

DGJsaver

Fancy a default or 2 ? thats whatll youll get if you CCA lenders as you will need to stop making payments....to be honest , and no offence but it seems from here that you just dont fancy paying what you owe , why dont you concentrate on getting debt free with this extra money you say you have each month THEN move out ?

Willow_K

They don't normally reduce interest rates if you are struggling - they normally put them up, so I doubt that fact that you are making repayments will encourage them in not reducing the interest rate.

If you are still at home and are more than meeting your repayments, may be worth shopping around for lower interest rate cards - see if you can get a 0% to transfer your balance to. You could keep your Egg card while you repay your balance at 0% and then, if the interest rate on the new card is lower when the 0% ends use that as a bartering tool with Egg ("beat this interest rate or I'll close my account").

It would ofcourse be vital that you don't spend on the Egg card while you are paying the balance off though!

Neenie_o

Thanks for that DGJsaver but actually I was just seeing if I had more leverage to negotiate a better interest rate if the CCA were flawed. I've never missed a payment and I've never tried to stop paying what I owe. Despite their constant rate hikes I've only stopped using the card in the last twelve months when it's rested at a lovely 26.9% (variable). Yes, I agree if I can't pay it off I will have to wait to move out, hence why I was asking if there was any way I could pay it off sooner. I am only trying to do my best to get debt free. Oh and for info, all of my spare money does go to my debts currently - sorry if that wasn't clear from the original post.

Thanks for the advice about the 0% cards, but would you recommend a life-of-balance for more flexibility? Just thinking out loud... but any advice would be welcome!

DGJsaver

Neenie_o wrote: »

Thanks for that DGJsaver but actually I was just seeing if I had more leverage to negotiate a better interest rate if the CCA were flawed. I've never missed a payment and I've never tried to stop paying what I owe. Despite their constant rate hikes I've only stopped using the card in the last twelve months when it's rested at a lovely 26.9% (variable). Yes, I agree if I can't pay it off I will have to wait to move out, hence why I was asking if there was any way I could pay it off sooner. I am only trying to do my best to get debt free. Oh and for info, all of my spare money does go to my debts currently - sorry if that wasn't clear from the original post.

Thanks for the advice about the 0% cards, but would you recommend a life-of-balance for more flexibility? Just thinking out loud... but any advice would be welcome!

You have been given the best advice already ,there being issues with the CCA wont help you get them to reduce the interest rate as you will need to default to take them to task over them anyway, so whilst your rating is good keep tarting the balance around decent deal cards wethere 6.9% for life etc of 0% , but youll be lucky to find 0% for any great length of time nowadays , and your credit rating will have to be in very good order to get them

Willow_K

Do you currently have more than one card or just the Egg card? If you have another card with a low balance or nil balance ring them and ask if they will do a 0% balance transfer deal for the Egg balance. If you can, pay off any balance on the second card before you do the transfer.

When the 0% deal ends, if you haven't paid the balance off, call Egg and ask for a 0% BT. I have two cards and they are both always offering me 0% deals, so if for whatever reason I can't pay my balance off, I just transfer between the 2 - the BT fee is less than any interest.

[Deleted User]

Neenie_o wrote: »

Thanks for that DGJsaver but actually I was just seeing if I had more leverage to negotiate a better interest rate if the CCA were flawed. I've never missed a payment and I've never tried to stop paying what I owe. Despite their constant rate hikes I've only stopped using the card in the last twelve months when it's rested at a lovely 26.9% (variable). Yes, I agree if I can't pay it off I will have to wait to move out, hence why I was asking if there was any way I could pay it off sooner. I am only trying to do my best to get debt free. Oh and for info, all of my spare money does go to my debts currently - sorry if that wasn't clear from the original post.

Thanks for the advice about the 0% cards, but would you recommend a life-of-balance for more flexibility? Just thinking out loud... but any advice would be welcome!

I think there attitude would be"if customer x thinks the CCA was iffy why should we lower the apr?"
best bet would be to go for the lowest whole of life balance you can find(depending on credit score you might find a good one)transfer exisiting balances then cut up all the old and the new cc`s

fermi

10past6 wrote: »

:spam::spam::spam::spam:

Hi 10past6 Please don't quote the text/links in spam posts. Just report them if you can. Thanks.

The post in question in this thread and replies quoting it have been removed.