Arrangement to Pay - Barclaycard

Oneday77

I am currently in an arrangement to pay situation with Barclaycard. This came about from entering a DMP with the CCCS, best decision ever.
I have since left the DMP as my circumstances improved and I'm working towards getting back on track.
The issue is BC have my AP on 2.9% interest which is fantastic for me. However I want to start paying more than the agreed £56 a month but at the same time don't want to lose the 2.9% interest.
Any ideas if it is possible?

The card is effectively closed I think. There is no additional spending allowed and the limit still shows at the old limit despite the balance dropping.

gabriella90

Hi

I'm also in the same situation - Barclaycard seem to have a sliding scale as soon as you start paying more the interest rate goes up. I had 0% increased my payment then they put the interest up.

do you still have your online account? Mine is still actively working - You could make additional payments on that and see what happens. Also do you have other creditors if so be careful about treating each one fairly.

Hope that is some help

heatherks

after review at Cab payment went up from £10 (&...0% interest ) to £46 a month and they slapped on 12-9% interest & will not budge on removing or reducing it either ..

id be careful as Barclaycard regulary ask for income / financial circumstance reviews

chanz4

you cant have your cake and eat it, although if its not on an AP it will be better for your credit file

topcat9

Just to expand on what chanz4 has said: Barclaycard will be putting an 'arrangement to pay' marker on your credit report every month, and many creditors see this as equivalent to or nearly as bad as a default. Also it can be worse than a default in the sense that a default drops off your credit file six years after the default is issued, but if you or Barclaycard close your account at the end of the AP, the markers will stay on your file for six years from the closure date. It's not as bad if you keep the account going after the AP ends but you will still have to wait for the markers to 'naturally' drop off your account record (I think it's 3 years for Experian, not sure for Equifax or Call Credit).

MrsTinks

Whilst AP doesn't look great on your file then it might be worth not increasing the payments to BC but instead putting the extra away to do a balloon payment to pay it all off in one lump towards the end? That way they won't load more interest on the debt and cause it to take a lot longer to pay off?

Oneday77

Thanks all.
I know about the AP marker, my file is full of them.
The balloon payment is a good idea. I am fully prepared to pay the balance off, it would just be good to do it in the most cost effective manner.
After all they have been known to offer 0% balance transfers for teh life of a balance, where is the difference freezing mine at 2.9% ?
I do know that once an account is closed the interest rate is frozen, well I think it is so I will look into it further.

If I just knew it could no longer behave like a CC and the interest rate doesn't rocket up to something stupid like 34.9% I would be extatic.