Credit Card Interest Rates

carlene_2

Hi

Can anyone tell me the best way to get a credit card company to reduce monthly interest rate on my account at the moment its a whopping 23.9% and don't seem to be clearing any debt. My poor mum has just had to bail me out on another credit card but still have to pay this one but payments are crippling me. Also have a credit agreement with Barclaycard to pay back £170 a month but am starting to feel the strain and can't really afford that much.Any ideas on how to ask them to reduce payment without them getting nasty and demanding whole outstanding balance.

mattp_3

Hi,

is your credit rating poor at the moment (i.e. have you tried to apply for another card with a lower or ideally 0% interest rate?)

if you are unable to get another card to transfer the balance across, then you should try to write to the creditors first, with details of all your incomings and outgoings, then you can ask them to reduce the payments and suggest they reduce or freeze the interest on the accounts.

there are no guarantees that this will work, but is certainly worth a try - but bear in mind that your credit rating will be affected if you do not meet the contractual repayments (if you already have missed payments then it wont make a huge amount of difference but default notices can affect your ability to get credit and possibly a mortgage)

if you have no success after contacting the creditors, try using one of the free debt management services operated by Payplan (https://www.payplan.com) or CCCS (https://www.cccs.co.uk) - they may be more succesful at getting your payments reduced as they are recognised by the credit industry

Hope that helps a little

good luck
Matt

carlene_2

Thanks for that Matt, my credit rating is apparently medium so its not all bad am looking into transferring my balance but am trying to find a card that doesn't charge you a fee. I hate credit cards wish I'd never had any in the first place but there you go, you live and learn. have cut all my cards up and will never use one again.

oakdale_minx

who is the CC with? Some of the cards (Capital One and Barclaycard in my experience) will reduce the APR if you call them and ask. Bank of Scotland and Mint wouldn't, they said it wasn't something they did. I had my Capital One reduced from 29.9% to 12.9% and my Barclaycard reduced from 25.9% to 15.9% .

CLAPTON

why dont you post a Statement of Affairs here ..i'm sure people will be able to suggest savings on your spending which will help to reduce your debts...
see
http://forums.moneysavingexpert.com/showthread.html?t=107280

frugglewump

carlene wrote:

trying to find a card that doesn't charge you a fee.

For fee-free cards have you tried the post office card? You need a min income of 8k/year.

Just thought i'd mention it as i got one recently and was surprised at getting it & how quick it was.

carlene_2

I have one card with Barclaycard who I owe just under £15k with, I have an agreement with Mercers to pay £170 a month for 6 months then it will be reviewed. Didn't want to pay that much back a month initialy cos it stretches my money but they wouldn't accept less than that.And they have stopped interest any other charges to my account.My other card is a marbles card through HFC Bank, have just paid off arrears of £754 and have just over £9k owing to them.They haven't been very helpful in the past when I've contacted them but will give them a ring and see what they say. Have thought about putting whole amount onto mortgage I've got on a rental property but don't know what to do for best really,

james32_uk

I dont think anyones mentioned it already, but you can always just ring them up and ask to reduce the interest rate. I've been successful doing this before. Dont hold your breath for a positive reponse but it cant hurt to ask.

Thanks

Mike_St_Helens

Sometimes if your credit rating is !!!!!!ed, that even affects other cards you already have ! I know its unfair but if you have a bad rating, a lot of lenders will increase your APR simply because of this... I have 1st hand knowlege of this as a customer and an employee....

If you ask, Barclays for example, the rate you ask for if you want an offer does depend on your credit rating !