Lloyds Mastercard Credit Agreement

patman99

Look, if you pay-off £1800 over the next 2 months, that is £1800 less to which they will add interest once the 6 months are up. So, if your monthly interest is, say, 2% p/m then that will be £36 p/m less interest you will be paying.

As you have the chance to work o/t then use it to pay-off your credit cards NOW in order to save money in the future. I believe there is a 'snowball calculator' on MSE that will calculate how much interest you can save by increasing monthly payments.

When the 6 months is up and the rate goes back to what is was, you will be better-off. If they then increase the rate after this, you then have the rite to reject the rate-rise. However, this then results in the account being frozen and turned into a debt which is paid-off, but can't be increased. If you can do without the card then this is the route to go.

Fiddlestick

_Persephone wrote: »

Fiddlestick, do you mean actually save like mad, or use all spare cash to clear balance?

Use all spare cash to clear balance.

I don't mean "save like mad" as in, put money into a savings account - that would clearly be silly when there is an outstanding debt as large as that.

In hindsight that was probably a poor choice of words on my part.

_Persephone

Hello..

Giving this a bump as I have just checked my credit file with Equifax, and see that there is an "Arrangement to Pay" regarding this card.

When entering the agreement, I asked numerous times if it would affect my credit rating and the advisor told me no! But looking at this is has.

Is there anything I can do? Will complaining get me anywhere? I tried to apply for an MBNA card a few days ago and was rejected, perhaps this why!

Fruit_and_Nut_Case

_Persephone wrote: »

Hello..

Giving this a bump as I have just checked my credit file with Equifax, and see that there is an "Arrangement to Pay" regarding this card.

When entering the agreement, I asked numerous times if it would affect my credit rating and the advisor told me no! But looking at this is has.

Is there anything I can do? Will complaining get me anywhere? I tried to apply for an MBNA card a few days ago and was rejected, perhaps this why!

This is why it is a good idea to refuse to discuss these matters on the phone and GET EVERYTHING IN WRITING. Perhaps they recorded your conversations. Might be worth asking.

_Persephone

Fruit_and_Nut_Case wrote: »

This is why it is a good idea to refuse to discuss these matters on the phone and GET EVERYTHING IN WRITING. Perhaps they recorded your conversations. Might be worth asking.

Thanks.

At the time I didn't intend to enter any kind of arrangement, I was calling up to pay with another credit card. The advisor suggested the credit agreement thing after I complained the interest was so hight that I was struggling to make any inroad into the amount on the card.

I made full notes whilst on the phone and even got his full name. I think the calls are recorded - it says in the IVR when you call.

What shall I do next, and what do you think the outcome will be? Written complaint? Will they remove the arrangement to pay from my file? Had I been told that it would affect my credit rating, I would not have agreed to it!

FLAPJACK

As they have given you 6 months to sort yourself out, why not just pay the agreed £75 per month but bank the rest of your overtime payments for the next 6 months.
Then you will have an option either pay the acrude lump sum or call them and make a new deal for say £200 a month using partly the saved overtime and the new overtime.

_Persephone

Forgive my stupidity, but can you please explain the benefit of that over paying as much off as I can whilst the interest has been lowered?

This month I have already paid the fixed amount of £75, plus £650 in overtime.

I've been using the snowball calculator, and by the time the agreement ends in June the balance will be around £3000, and the payments manageable again.

Any thoughts on the credit file quandary?