Egg - what are the downfalls?

moments_of_sanity

We have a large amount of credit card debt (due to family illness etc) and have cancelled the DD on our Egg card. They called DH last night as said this months payment was £30 short and there was no DD set up. DH explained that this was because we didn't want to use the card anymore and would make payment over the internet every month.

The guy at Egg said that we can speak with the accounts people today and they can suspend the interest for 6 months if we are struggling to pay it. We are struggling and aren't far away from considering a DMP but I don't know what will happen with this account during the 6 months.

Will they then add on the 6 months 'interest free period' at the end of the 6 months, will this be recorded on our credit rating (which is shot anyway) and are they normally this helpful?

Any experience with Egg would be greatly received, thanks for reading

izools

As long as you stick to your end of the bargain they won't add a lump of interest after six months. If you break your agreement, they may resume charging interest, they may default the account.

All things being equal, if you are paying over the minimum on your bill each month it won't affect your credit rating. If you have to negotiate reduced payments, your credit rating will be marked as an "Arrangement to Pay" affecing your credit rating but not as much as arrears and no where near as much as a default.