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Can anyone advise on HSBC freezing interest?

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My OH has a credit card with HSBC.
It currently has a balance of around £4,100.
The interest rate on this card is something like 21.9%.

He pays the card off every month, more than the minimum payment, but around £100 a month is interest alone.

How likely are HSBC to freeze the interest, even for just 6 months? So we can start to try and clear at least some of the balance? If they were to freeze it for 6 months, we can clear £1200 of this remaining balance.

He doesn't want to go on a DMP as this is his only debt and doesn't want his credit rating shot.

Any idea's?
SAVINGS: £63.86 // £3,000

Comments

  • If you have no other debt, have you considered him applying for a different card with a low-life-of-balance interest rate, and transferring the debt?

    If this is your only debt, then having it flagged by HSBC as potentially defaulting won't help you much either. If you post a SOA on here the lovely people will help you identify ways to save money to throw at the debt, along with looking for a better deal.

    Good luck
    Some days, it's just not worth chewing through the leather straps....
    LB moment - March 2006. DFD - 1 June 2012!!! DEBT FREE!



    May grocery challenge £45.61/£120
  • eyeopener2
    eyeopener2 Posts: 1,783 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    The only way you would get interest frozen is if you were in financial difficulty and even on a DMP that has various meanings! And with only one debt and your paying over the min forget the DMP.

    Your paying over the minimum so there is no chance a creditor would accept reducing interest, its in their interest for you to pay as higher rate as possible for as long as possible.

    The best thing you can do, as mentioned above is to post your SOA and lets get more of that capital paid off each month. I'm sure with a bit of belt tightening you can get this paid off soon.
    I'm Debt Free :j 2/09/2013
    Debt at LBM 30/04/2010 £24,109.38,
  • eyeopener2
    eyeopener2 Posts: 1,783 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    edited 10 February 2012 at 2:11PM
    Have you tried the snowball calculator? Normally this is used for multiple debts but you can use it for one. Put in your debt, the interest rates and see what difference overpaying the minimum by different amount does to the repayment period.

    Couple of quick calcs.

    £200 a month for two n a bit years and its cleared. £150 approx 3 years.
    I'm Debt Free :j 2/09/2013
    Debt at LBM 30/04/2010 £24,109.38,
  • We tried applying for another CC. But we've just moved and we aren't on the electoral roll yet. So he was declined.

    Also forgot to mention he has a default from Barclays. However this debt is in dispute for various reasons and he doesn't actually owe the money - this could also be why declined.

    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1100
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1100


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 350
    Management charge (leasehold property).. 0
    Council tax............................. 50
    Electricity............................. 35
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 25
    Telephone (land line)................... 7.5
    Mobile phone............................ 37.5 This ends in a month or so, changing to Sim Only deal.
    TV Licence.............................. 6.5
    Satellite/Cable TV...................... 0
    Internet Services....................... 7.5
    Groceries etc. ......................... 80
    Clothing................................ 0
    Petrol/diesel........................... 60
    Road tax................................ 10
    Car Insurance........................... 35
    Car maintenance (including MOT)......... 20
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 6
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 10
    Entertainment........................... 40
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 810



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0
    Total Assets............................ 1000


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    HSBC...........................4100......100.......21.9 £100 min payment, pays £200
    Natwest........................960.......10........0
    Total unsecured debts..........5060......110.......-



    Monthly Budget Summary

    Total monthly income.................... 1,100
    Expenses (including HP & secured debts). 810
    Available for debt repayments........... 290
    Monthly UNsecured debt repayments....... 110
    Amount left after debt repayments....... 180


    Personal Balance Sheet Summary
    Total assets (things you own)........... 1,000
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -5,060
    Net Assets.............................. -4,060


    Created using the SOA calculator at https://www.makesenseofcards.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
    SAVINGS: £63.86 // £3,000
  • it's hard to use the SOA calculator as every month it's different for us.
    We get paid every 4 weeks, and bills cross over on some months.
    SAVINGS: £63.86 // £3,000
  • Also forgot about the 0% NatWest card!

    Anyway, I did the snowball calculator and it said that this could be cleared in 24 months time, by paying £250 per month off. This doesn't include the bonus my OH will receive in May.
    SAVINGS: £63.86 // £3,000
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