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Reduction in Credit Card interest rate?
adfax
Posts: 98 Forumite
Apologies if I am posting this in the wrong place, but ...
My wife has a credit card balance of about £8000 on a Natwest Credit Card.
Over the past year or so the interest rate steadily rose to about 21%, and then they tried to increase it to almost 30%. At that point the she contacted them, and they agreed to freeze the interest rate at its current rate - ie 21% - but the account was 'closed'.
She is making repayments just over the minimum - about £200 per month and sometimes up to £300. However, the interest is about £140 per month! At this rate it is going to take an awfully long time - and a lot of interest - to clear the debt.
I have heard of people asking their credit card company to reduce the interest rate with some degree of success. Does this work in real life, and if so, how is it best to approach them? What incentive is there for them to do this?
Any help would be appreciated.
PS -getting a card with a 0% transfer rate isn't an option - she has tried and has been declined (probably as I am in an IVA ... )
My wife has a credit card balance of about £8000 on a Natwest Credit Card.
Over the past year or so the interest rate steadily rose to about 21%, and then they tried to increase it to almost 30%. At that point the she contacted them, and they agreed to freeze the interest rate at its current rate - ie 21% - but the account was 'closed'.
She is making repayments just over the minimum - about £200 per month and sometimes up to £300. However, the interest is about £140 per month! At this rate it is going to take an awfully long time - and a lot of interest - to clear the debt.
I have heard of people asking their credit card company to reduce the interest rate with some degree of success. Does this work in real life, and if so, how is it best to approach them? What incentive is there for them to do this?
Any help would be appreciated.
PS -getting a card with a 0% transfer rate isn't an option - she has tried and has been declined (probably as I am in an IVA ... )
0
Comments
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Hi adfax,
Some credit card companies do freeze the interest (my wifes company have done this with her card). My wife telephoned them and then sent in a financial statement (her income only!) before they agreed to freeze the interst. However, Natwest have a dreadful reputation for refusing to stop the interest on defaulted loans and credit cards etc. You of course can ask them to do this and explain that if they don't freeze the interest rate then it'll take forever to pay off.
Good luck in getting sortedIf you've nothing decent to say, perhaps you shouldn't say anything.
£2 savings jar £300:D
Total credit card debts £1250:mad::mad::mad::mad::mad: - Will I ever learn!!0 -
Have you seen the article about rate jacking here..?
http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increase
I think that your wife can "reject" the rate increases and they shouldn't be hiking the rate more than 6 monthly anyway. Read the article and see if it is worth ringing Natwest again, she may be able to get the rate reduced, especially as she has been paying above the minimum payment each month!"I may be many things but not being indiscreet isn't one of them"0
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