Has anyone ever manage to do this?

flumpkin

julesp_81 wrote: »

I'm just looking for some further advice re: your initial post sjw64, I have 14k in credit cards debts, again obviously my own fault I know, but while I can just about meet the minimum payments every month I am crippled by the interest rates. For example on one card my minimum payment is £50 and the interest is £45! If I wrote to them and explained that I am in debt and struggling do you think they would consider reducing/freezing the interest on my cards even for a temporary period? Also for info all my cards are closed, I am just paying off the balances. I am concentrating on the one with the highest interest rate first and then working my way down. My credit rating is poor as I have missed a few payments in the last year so I cannot get a 0% deal at the moment.

Any advice much appreciated!

Hi Jules

I know how you feel with the interest rates. It is so disheartening when you make a payment and SO much goes back on in interest isn't it? Agree with Bob - def do the snowball calculator as it can show a light glimmering at the end of that tunnel. I would also recommend doing a SOA as this has been a real eyeopener for me. I am no expert (just look at my sig and fact only been here a few days!), but I would say pick highest interest and throw any extra you can at it. Look also at ways to make extra money ... ebay etc. I don't know your circumstances but I would encourage you to take the plunge and do snowball and post SOA. There are lots of lovely, supportive and knowledgable people on here I know. Lots of them are here posting on my thread We can do this!!

love flump x

helpmebedebefree

This is my first post/reply I've sat for hours reading through this tread and now feel if you can all do it so can I, I don't want to steal your tread and will start my own with a clearer head this week but you are all inspirational I also suffer from depression, started as postnatal which I didn't realise I had until husband left me and have battled for two years with and now come to my senses after my head has been in the sand almost loosing my house that I must sort my finances it would be great to keep in touch, and keep up the good work flump.
(I hope I've posted correctly)

recurrent-ostrich

flumpkin wrote: »

Do you have a thread too Ostrich?

Yes, it's: https://forums.moneysavingexpert.com/discussion/4842590

julesp_81

Thanks Bob and Flump! I have looked at a snowball calculator online before but will have another look. I have a fairly detailed budget I created on Excel but will also have a think about posting my SOA.

I'm also about to go off on maternity leave as of June, so was wondering if my creditors would be more likely to consider a interest freeze/reduction on this basis as well as having outstanding debt? I'm pretty lucky in that my work maternity pay is good and my partner earns a good salary but obviously I would like to pay as much of the debt of as quickly as possible!

Good luck Flump - looks like you have been given some really good advice and have lots of money saving ideas to get you started!

[Deleted User]

julesp_81 wrote: »

I'm also about to go off on maternity leave as of June, so was wondering if my creditors would be more likely to consider a interest freeze/reduction on this basis as well as having outstanding debt?

I doubt your creditors would freeze or reduce the interest, merely because you are going on maternity leave.

They generally only consider freezing or reducing interest, once you have defaulted, which I'm assuming you haven't?

julesp_81

Just wondered if it was worth a try. I have defaulted on one card and the interest has been frozen on that card, but all the others cards still have a high rate of interest. Just wondered if it was worth a try contacting the creditors.

flumpkin

Well I have bitten the bullet and cancelled my other cc with creation today - apparently too late to avoid a 2% interest rate increase but it is another closed account. If nothing else I am removing options for additional spending

Thanks for link Ostrich - going to have a cup of coffee and a read.

...and welcome Helpmebedebtfree - the first post is always the hardest I think... but I feel much better acknowleging my issues and finally starting to take small steps to move forwards. Good luck on your journey. I'll be here for the long haul... obviously I am a total newbie and no expert but if you want to PM me ever feel free! ;-)

Congrats on the pregnancy Jules

love flump x

homelovin

Hi Flump,
Your original question involved reducing interest rates. At the beginning of our debt free journey, we couldnt afford our outgoings. Every month I had to add 200 pounds to our credit card total to make ends meet. But I did pay the minimum each month, then just paid for everything on the cards again to get through the month. As the credit limit was getting near the top I had many sleepless nights trying to figure out what how we were going to survive, then I came to this website and I started to change things.

One of the first things I did was call my 5 credit cards and said I was trying to work out my budget (no mention of my inability to pay) and hoped they'd be able to help me by reducing my interest rate. 2 of them said they could see a special offer/better rate they could apply!!! one of them was MBNA.They reduced it from 28%ish to 18,9% which reduced the min payment.The other was Santander by just a few percent.BUT these changes made all the difference. Now, as the debts have decreased, we get offered zero rates from allover the place and I have no debt left at the moment on which we pay interest. And we still have a lot to pay off, but it is going down.

Try giving them a ring. You can't lose anything. Be pleasant and polite - i find you get further with sugar! - and I would suggest not making it sound like you can t afford repayments, but just you want to reduce what you owe as a New Years resolution.

I dont know if I was just lucky, but it made all the difference to us in 2011.

flumpkin

Thanks HomeLovin that is really encouraging. Our highest rate is mbna. I just need to convince OH to ring them as it is his card. I would call in a flash if it was mine. I find the fact you say you are getting zero rate offers now that you have reduced your debts very encouraging too and I am hoping that I will experience the same along the way.

I have been closing cards to stop me respending and to avoid interest rises, so only have 2 live ones I could ask now. One is cap1 - may give them a shot? The other is sains which has a number of different rates on it as was a very low bt for life orig, then a higher one and then a normal rate for more recent spends.

love flump x

armchairexpert

It can't hurt to ring and see, flump. Maybe if you have good luck, your OH would be more motivated/confident in trying as well? Mine hates any sort of phone calling, let alone something scary like that, and the trick he used to use is to write down what he was going to say like a script.

Anyway, I'm just popping in to cheer you on from the sidelines, you're getting great advice here, and I bet you're going to beat this.