Can I get interest frozen on old CC?

carrot_cake

Hi all


I seem to recall seeing a post on here recently where someone had had the interest frozen on their credit card (but I can't remember what post it was).


Anyway, long story short, a good few years ago I had a Barclaycard which I spent up to the limit on and struggled to meet the monthly payments. The card was stopped and I agreed to pay at least the minimum payment every month (which I have done for years). I haven't been/am not in a position to pay the amount outstanding (around £1,200) off and have basically just been paying the interest charges (minus around £5 which comes off the total).


I am trying to become more "moneysaving" and would like to know if there's a way (without "upsetting the applecart" with Barclaycard) that I could get the interest frozen so I could at least start making a dent in what I actually owe. I don't have any marks on my credit file from Barclaycard as I have always paid at least the minimum amount on time.


What are my chances and how would I go about this?


Thanks :-)

Free_Spirit_31

Hi,

If I am not mistaken, if you asked the credit card company to freeze the interest it could leave a mark on your credit file (arrangement to pay) and they could close the account and make it a repayment account only.

They may do an arrangement with you, then after a period of time pass it on to a DCA and they could put more pressure on you.

carrot_cake

Thanks for the quick response.


The account is no longer active anyway (in the sense that I no longer have a card and have never been sent another one). I presumed this meant that the account was closed and I was just paying off what I owe them?


I was going to edit my original post to add that I did not really want to get another credit card and do a balance transfer as I'd rather steer clear if at all possible.


I'm wondering if I should just give them a call and see what they say? I suppose worst case they would just say no.


Thanks again.

Thrugelmir

If you are merely making the minimum payment then it'll take years to repay. Increase your repayments to accelerate repayment.

YorkshireBoy

carrot_cake wrote: »

I was going to edit my original post to add that I did not really want to get another credit card and do a balance transfer as I'd rather steer clear if at all possible.

Why on earth not!? Getting a 2.5 year BT card would see your debt wiped, and credit history unaffected, with very little increase in your current monthly payment. The bad news is that if the card has been destroyed you may not have the 16 digit number and/or it may not accept a standard BT.

I'm wondering if I should just give them a call and see what they say? I suppose worst case they would just say no.

They will say no. Why would they say yes when you're not struggling?

carrot_cake

Thrugelmir wrote: »

If you are merely making the minimum payment then it'll take years to repay. Increase your repayments to accelerate repayment.

If I could afford to do this I would. However, the amount I would be able to pay above the minimum payment at the moment wouldn't make much difference, I'm afraid.

YorkshireBoy wrote: »

Why on earth not!? Getting a 2.5 year BT card would see your debt wiped, and credit history unaffected, with very little increase in your current monthly payment. The bad news is that if the card has been destroyed you may not have the 16 digit number and/or it may not accept a standard BT.They will say no. Why would they say yes when you're not struggling?

I really did want to stay clear of credit cards to be honest although I did realise this may be the only viable option. I don't have the original card although I do get statements through which I presume would have the card number on somewhere?


I'm not sure I would get accepted for a card anyway as I only work part-time (I'm also a carer) so my annual salary is very low.



Thanks for your responses.

Thrugelmir

femalemonarchfemalecanine wrote: »

how much was the first minimum payment you made? you paid thayt, so keep your payments at that level at least, it will make a massive difference to how long it takes to pay your debt off.

That was my thought. As the minimum payment must be reducing.

Stereo

YorkshireBoy wrote: »

They will say no. Why would they say yes when you're not struggling?

Um... I was in a similar situation 5+ years ago, called up the bank and they agreed to freeze all interest as the account was closed and could no longer be used.


It's worth a shot if you want to get this debt paid off quickly.

grumbler

Stereo wrote: »

Um... I was in a similar situation 5+ years ago, called up the bank and they agreed to freeze all interest as the account was closed and could no longer be used.

This doesn't make much sense.
How can an account with balance be closed?
The interest is charged on the balance regardless of usage.
And do you mean that they froze the interest at 0% or at the current level?

Stereo

grumbler wrote: »

This doesn't make much sense.
How can an account with balance be closed?
The interest is charged on the balance regardless of usage.
And do you mean that they froze the interest at 0% or at the current level?

"Closed" as in it had been passed to a debt collection agency and therefore the card could no longer be used.


The DCA agreed to stop charging interest on the balance on the condition that I make a monthly payment to them. As I was in financial difficulty at the time it was a token amount, £10 per month I think.


Sorry, I wasn't clear