Is it worth begging?

Mode1803

So I have a few credit card problems and have posted all the details on another thread with my SOA.

I was wondering if it is worth writing to the various companies and basically begging for a reduction in rate. I would suggest to them they they cancel the cards so we cannot use them any more as well.

Is this worth a go or am I being a total nutter for even considering it!

Cheers

Mode

stephane_2

You can try but if you have not defaulted on those accounts I don't see why they would want to do it...

Mode1803

Yeah I know but asking never hurts?

I am expecting a polite "up yours" response btw!!

Mode

CLAPTON

having two threads isn't very productive because everyone answering here will want to ask the same questions you have already discussed on your other thread.

reading your other thread I don't really see that high interest rates are your major problem... cash flow is your current issue and reducing APR wouldn't necessarilly make any difference to the monthly payment

as I understand your situation, you have very significant debts but can look forward to £60,000 bonus over the next year in addtion to your 70,000 salary

it would seem to be a situation of cutting back on absolutely everything until the bonus start to come it and then pay the most significant debts back

if you do want to ask for APR reductions then begging it the absolutely last thing to do.. if you are struggling then they will want to increase your APR, reduce your credit limit and freeze the card for further spending.... you will after all be saying that you are in deep financial trouble
you would do better to threaten to BT your balance to another card but subject to what shows on your credit files that may be an empty threat

[Deleted User]

Mode1803 wrote: »

Yeah I know but asking never hurts?


Mode

Don't take any more advice from whoever told you 'asking never hurts'.

Clapton is absolutely right - you don't tell your lender that you're having trouble paying him back. Your rates will go up so that a) they make some money from you before you go under and b) you prioritise that debt over the others, because it is the most expensive.

LeeSouthEast

Clapton has some excellent advice up there. You also have light at the end of the tunnel, it seems, and fairly quickly. I'll go find your other thread in a minute.

However, don't automatically dismiss asking for a better rate. Don't threaten or beg, but there is "no harm in asking". When I was £20k under, I went to see my bank (who were also one of my largest creditors), sat down with a personal advisor, and we went through everything. In hindsight it was a dangerous decision, but I'd banked with them for 15 years and had a good relationship, so didn't see any harm in it.

I walked out 2 hours later with a my two loans (one at 19.9%, and one at 14.9%) consolidated into one 3 year loan at 8.4% with no early repayment penalty (I was quite honest and said I'd be looking to kill it inside a year), and a new credit card with 0% on balance transfers for 14 months to kill the interest on my other card. They couldn't have been more helpful.

So, be careful with it, but don't dismiss it out of hand either. Their actions saved me probably in the region of £1,000 in interest alone!

chexum

Deleted_User wrote: »

Clapton is absolutely right - you don't tell your lender that you're having trouble paying him back. Your rates will go up so that a) they make some money from you before you go under and b) you prioritise that debt over the others, because it is the most expensive.

Or c) "force" you to close the account to stay with the current rates, but stopping you increasing the credit with them, while still guaranteeing minimum payments (with hefty interest for them), or non-minimum repayments, paying back the debt in a reasonable time. Win-win. For them.