Freezing interest on a credit card

hollin

Good afternoon,

I am struggling with debt at the moment.

I have started another thread with my statement of affairs and people have given me some advice.

Does anybody know that if I spoke to my credit card company and explained that I was struggling if they could freeze the interest??

If so would this severly affect my credit rating/score etc??

I pay £115 every month and the balance goes down by about £5 every month.

Thanks

Regards

Daniel

reclusive46

You can get them to freeze the interest normally, but a spending ability will be cancelled on the card. I don't think it should affect your credit.

BugsyBrowne

hollin wrote: »

Good afternoon,

I am struggling with debt at the moment.

I have started another thread with my statement of affairs and people have given me some advice.

Does anybody know that if I spoke to my credit card company and explained that I was struggling if they could freeze the interest??

If so would this severly affect my credit rating/score etc??

I pay £115 every month and the balance goes down by about £5 every month.

Thanks

Regards

Daniel

Not 100% sure of the answer but would say it would take a lot more then just phoning up your credit provider and asking for an interest freeze.

Thought you had to go down the default stage for this to happen as everyone who's finding their credit cards are getting out of control would do this if it's that easy.

As for your credit files it will certantly be a negative.

jonesMUFCforever

reclusive46 wrote: »

You can get them to freeze the interest normally, but a spending ability will be cancelled on the card. I don't think it should affect your credit.

Sorry but I must disagree with the last sentence.

It most certainly will affect credit rating as if they agree to an interest freeze it will show on credit files as an arrangement to pay. Until this is paid off kiss goodbye to any new credit application.

exel1966

hollin wrote: »

Good afternoon,

I am struggling with debt at the moment.

I have started another thread with my statement of affairs and people have given me some advice.

Does anybody know that if I spoke to my credit card company and explained that I was struggling if they could freeze the interest??

If so would this severly affect my credit rating/score etc??

I pay £115 every month and the balance goes down by about £5 every month.

Thanks

Regards

Daniel

If a card company decides to increase your APR you have the right to opt out of that increase, but at the same time your ability to use the card further is stopped. This has no effect on a credit rating.

If you call the card company and ask to have interest frozen you are immediately alerting them to potential problems. If they decide to freeze the interest you will in effect be on a payment plan which will get reported to the CRA's and will affect your future credit worthiness for up to 6 years. They will usually only consider a payment plan IF you've already missed payments.

hollin

Thanks all.

I guess I will struggle on until I can start over paying it next year and hopefully clear it.