Halifax interest rates just go up and up

creditcardmisery30

Please could someone give me some advice as to how I can get Halifax to either stop my interest or at the very least drop their rate of interest? I have a large amount owing on my card (£12300 owing on a limit £12400) much of which was taken in cash - I know not good but it was the only source of cash at the time - I can only afford to pay off the minimum payment at the moment, however that has meant little coming off the balance! Since October 2009 and I have paid nearly £4000 in interest and yet my balance has only reduced by £100!!! Now Halifax want to put the rate of interest up yet again. I have cancelled my card and retained the same rate which is still a massive 29%. Halifax charge at a daily rate so some months interest is higher than others, when I try to discuss this with Halifax I'm fobbed off with 'the interest over the year works out at the given APR'. However, that still means that some months I have to pay more to Halifax when my income doesn't alter nor stretch ... ! Why do Halifax want to keep upping their interest rate to those who can least afford it thereby 'causing even more heartache and stress. I blame no-one but me for my difficulties, however I have added up the amount of interest I've paid since I reached my limit of £12400 and it amounts to more that £15000 and I've still only reduced the balance by £100! Something can't be right - what can I do?

fozmcfc

If your credit rating is good enough you could apply for another card with a 0% balance transfer for xx amount of months and transfer some or all of it (depending on limit new card gave) to the new card. If you have an excellent rating you might be able to get 2 or 3 cards if necessary.

However, paying the minimum only suggests to lenders and myself you are struggling, so you might find getting another card impossible.

TBH you have 2 options left, one default on it and come to some arrangement to pay it back, that will ruin your credit record for at least 6 years.

Or secondly try to cut back on everything and start paying more off the card. The debt free wanabee section around here, contains many people who can offer you advice and support on tackling the debt.

There is no easy get out, such as Halifax stopping all interest or you just stop paying and all is fine.

opinions4u

The only way you are gonig to be able to get the debt down faster is by paying more than the minimum payment.

Halifax charge at a daily rate so some months interest is higher than others, when I try to discuss this with Halifax I'm fobbed off with 'the interest over the year works out at the given APR'

So does every credit card company that I'm aware of.

Why do Halifax want to keep upping their interest rate to those who can least afford it thereby 'causing even more heartache and stress

Higher risk = higher rate.

Other choices? See a debt charity or CAB or perhaps post on the Debt-free Wannabe part of this forum for specific help in spending less and earning more.

izools

Indeed- if your credit rating is good enough i.e. no recent missed payments and no history of defaults / CCJs you might benefit from applying for a card elsewhere.

You have two options - a 0% card that reverts to a pretty standard APR after a while (16.9%)

http://www.your-application.co.uk/netfinancecertegymicrosite/creation/Welcome.aspx?

This is the Creation Mastercard. I suggest them for this option as they are more lax than other credit card companies when it comes to debt to income levels.

Remember to put your Halifax card details and transfer amount on the application if you choose to proceed otherwise the limit will be paltry.

The other option is a "low rate for life" card.

http://www.mbna.co.uk/credit-cards/mbna-rate-for-life-credit-card/index.html

The MBNA card offers 5.9% on balance transfers for as long as it takes you to pay it off. They are known to dish out high limits but aren't as sympathetic towards high debt to income ratios as other creditors.

I would suggest lowering the limits on any other lines of credit you have before you apply, you need to make sure your "Available credit" to "Income" ratio is as low as possible or you won't get the finance / limit you need.

Good luck, do let us know how you get on :beer: