Can I swap credit cards (not spending) to reduce rate whilst on a dmp??

Sueb_2

I am 2 years to becoming debt free - from £26,000 odd in 2006 to around £9000 now ::- two of my creditors, one is a loan the other is a credit card are still charging horrendous amounts of interest despite many requests not to...can I still expect to be able to swap the debt to lower rates elsewhere? I have never missed any of my payments since 2006 and just wondered if my credit rating would prevent this, or even if it would breach the dmp (with payplan - who have been brilliant by the way)

Any help/ info appreciated.


.............getting there - don't give up everyone

Tixy

Its likely you have defaults on your credit file that would mean your chances of getting new credit will be minimal.
Applying for new credit would be against the terms of the DMP anyway (even for the purposes you describe).

Plus if you creditors see new credit application searches appear on your credit file then they won't be very impressed. It might mean that those that had agreed to freeze interest would start charging again, or could even increase the chance of them deciding to take you to court.

feeling-good

I am not sure I am correct but I think I am when I say " under no circumstances must you apply for further credit whilst you are on a DMP " why not give Payplan a call and get them to confirm the position on this....

edinburgher

Think Tixy's bang on with that advice - applying for extra credit would seem to breach a fairly basic 'rule' of most DMPs - that of avoiding further exposure to credit.

Even for the purposes of reducing rates, you're not really 'swapping' the debt as such, because if you were successful in getting new cards you might theoretically end up with a higher limit etc. and would have inadvertantly breached the terms about new debt.

I can see where you're coming from, but I don't think the DMP arranger will go for it. Still, let us know what they say.

Sueb_2

Thank you all - that entirely makes sense. I'll keep on paying it off...........