Reduce credit card interest rates

danadanny

Hi,
my brother has a debt of about £2,600 on his existing HSBC VISA card. Just wondering if it is worth getting him to call HSBC to try and reduce the interest rates.

He has been using this card for 5 years now.


Any advise is deeply appreciated.
Danny.

tom188

yes there is nothing to lose in giving them a call. they can always say no.

danadanny

Thanks, tom188

I've got another question. How is APR related to monthly credit card interest rate? How does credit card companies derive the monthly interest rates?
Currently, my brother's monthly credit card interest rate is 1.527%. Is this considered high?

Thanks

Mozette

The rate of 1.527% is the monthly rate, it's in the region of 20% APR I think, so yeah, quite high.
By the way, Inland Revenue is now HM Revenue & Customs! Makes all the difference.....:rotfl:

danadanny

Mozette,
if 1.527 is the monthly rate, then 1.527 * 12 would be the annual rate? Don't think it that straightforward.

Inland Revenue, HMRC.... its all the same to me. They do what they do best. Tax! :P