Freezing interest

julesfh

Hi all
Apologies if this has already been asked elsewhere. I have searched. I am struggling but not quite at the stage where I need to think about a DMP. However, is it worth me contacting my credit card companies to ask them to freeze the interest? I am managing to make minimum payments pretty much but not making any headway on the debt.
Sorry if this sounds naive.
Thanks

julesfh

Actually ignore, I can see another thread that might be relevant!

Tixy

Usually your creditors won't agree to this unless you are on a DMP and they have seen a statement of affairs that proves you cannot meet your minimum repayments but are paying all you can afford.

However there are a few people who have managed to get their credit card company to agree to reduce interest or freeze it for 6months. You could try this, although there is no guarantee your creditors will agree there isn't much to lose by asking.
Things to watch out for
- if they say know they could then decide to stop future purchases on the card or could possibly decide to increase interest (although if they try this you can opt out of the interest but won't be able to use the card anymore).
- if they agree to it then you need to establish what they will mark on your credit file, if anythin. Some people have found card companies will agree to freeze interest for 6months buth have then found the creditor has marked an 'arrangement to pay' on their credit file - which looks bad to other lenders and will probably scupper any new credit for a while.

Do you have several cards? does the APR vary a lot across the cards? are there any you are not up to your limits on? could you move some of the balances around to reduce the interest (either by balance transfers or slow stoozing)

s1h

Are there any sample letters that can be sent to ask them to freeze interest? I'm not very good with writing letters and end up getting in a real state and bag of nerves with speaking to people on the phone.

6 months at 0% on my opus and barclaycard would put a big dent in it.

Tixy

If you are not going on a DMP but just want to see if they will reduce your rate or temp freeze interest I think people often just try phoning them to start with.

There are quite a lot of useful templates on the National Debtline website sample letters section, although I think most of these will apply to someone who is on a DMP or going to go on one, still some of the wording might be useful for you to use for a letter suitable for your circumstances.

julesfh

Ah thanks for the replies. My credit cards are maxed out. I never want credit again so it doesn't bother me what they put on my file, I reckon my credit rating is shot to pieces anyway! My APRs all vary. In some cases I pay the minimum payment and then the interest is banged on and I am back where I started the next month.