Credit Card company are putting their interest rates up...already skint!!!

Angel84

So came home to a letter from Santander yesterday, they're putting the interest up on my Asda credit card. :mad: from 17.8% to 22.7%!! I already owe over 3k on this card and have been concentrating on paying it off and haven't spent on it in over a year....I know people mention you can refuse the increase. (Which they mention on the letter) but i'm worried what happens if i do refuse the raise. Will they make me pay it back in one go? I can't afford the rise in interest but i also don't have any other options. I have other debts that i'm also trying to pay off (car loan, credit cards, overdraft etc). I can't find 3k just like that to pay it off....HELP!!!

Clarie_2

Hi,
as far as I'm aware you can refuse the interest. You don't have to pay it all back in one go if you do but you must cut up your card and not use it again. Which I'm sure as you are trying to pay everything off you've already done!

Clarie

Angel84

Thanks for your response. I cut it up about a year ago and have just been concentrating on paying it back. I don't want to be paying more interest on what I already owe. Hard enough paying it back as it is now. Never mind owing them more and more....think I need to phone them today and ask them to close it. Then I'll just pay back what I owe and be done with it.

property.advert

I'd talk to them on the phone and try to get them to keep the interest rate the same as now, informing them that you are aware of your rights but would rather not cancel the agreement. If they refuse and a manager cannot help, then you have to decide whether to swallow the increase to retain the facility or to cancel and keep the interest rate.

Just out of interest (pardon the pun !) this 4.9% interest would cost you around an extra £50 per year per £1000 borrowed. Your £3000 would therefore cost a bit less than £150 more in interest.

I'd tell them to stuff it where the sun don't shine.

Angel84

Just got off the phone with them. Told them I was not accepting the interest rate hike. They flexed their, 'this means we'll have to close the account'. I told them it was fine and i'll keep repaying them until the balance is clear at the current interest rate.

Angel84 - 1 Santander/Asda CC - 0

:T