Rate hike

AliceBanned

Hi


Didn't know whether to post this on the 'credit cards' or 'credit scoring' part of the forum.


Got home from work and have a letter from Halifax - they are increasing my cc rate from 18.9% to 25.95%! Current balance £3300. I had reached limits on my ccs last month but paid off a loan for my pc, so my debt is still reducing, but not quickly enough, especially with this kind of interest rate!


I switched my current account from Halifax to M&S last month so I suspect this has triggered it. I was paying quite a lot for my overdraft plus monthly fee with Halifax. I've been with Halifax for several years with this cc and current account, and now mortgage. I have a meeting about my mortgage in two weeks as the fixed rate is coming to an end. It isn't looking good if this is how they are viewing my credit worthiness. I haven't defaulted, gone over my limits or had any late payments. Guess they just see that I'm still in debt and I wouldn't get a better rate anywhere else so they can take advantage. I am not going to apply for a better rate elsewhere as I have already transferred a balance onto a Co-op card long term low interest. I've been juggling it all for a while and trying to pay off the most expensive debt first, but now this! It's never happened to me before. I'm a bit surprised and upset I suppose, it's not easy and I'm not having hols or living it up - I'm struggling but managing all the bills etc. Just no luxuries as I want to repay the debts.

AliceBanned

ps apologies for the weird link in the title - I thought I had copied a 'sad' smiley!

fermi

AliceBanned wrote: »

ps apologies for the weird link in the title - I thought I had copied a 'sad' smiley!

Sorted that.

Tixy

Will you opt out of the increase before the meeting regarding the mortgage?
I guess you have time that you could wait and opt out after that meeting.

It may not be an indication as to what you can expect in terms of the mortgage, were you hoping to get another fixed rate deal with them? Is the SVR a lot higher than your current fixed rate deal?

AliceBanned

Tixy wrote: »

Will you opt out of the increase before the meeting regarding the mortgage?
I guess you have time that you could wait and opt out after that meeting.

It may not be an indication as to what you can expect in terms of the mortgage, were you hoping to get another fixed rate deal with them? Is the SVR a lot higher than your current fixed rate deal?

I was going to do nothing now until after the meeting. The increase isn't optional though - how can I opt out?


True, my fixed rate is at 5.89% until the end of July, and this was my first mortgage so I accepted a poor rate. Their standard variable rate is around 3.5% I think. I did want to staircase and borrow more though, as I am in shared ownership. It isn't looking good, and about 6 months ago when I spoke to them they said they wouldn't lend me more on a SO mortgage but would on 100% ownership one..much more in fact - about £100k.

Tixy

In the notification regarding the increase they should give you details on how to opt out and 60 days to do so.
Effectively an opt out closes the account to any new spending, but allows you to continue to repay the debt at the current interest rate.

Article here http://www.moneysavingexpert.com/reclaim/credit-card-interest-rate-increases

AliceBanned

Thanks Tixy. I hadn't quite read that closely enough. In that case I'll do that, as I don't want to spend on it! Thanks for the info.

Candyapple

Have you tried applying for a new balance transfer card to shift the debt onto?
http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?&_ga=1.53457128.111067531.1432805732#barclaycard28

AliceBanned

Candyapple wrote: »

Have you tried applying for a new balance transfer card to shift the debt onto?
http://www.moneysavingexpert.com/credit-cards/balance-transfer-credit-cards?&_ga=1.53457128.111067531.1432805732#barclaycard28

Thanks Candyapple. I do keep my eye on offers but I am close to my limits on four credit cards at the moment. Most of my debt is credit card debt and I am working to clear them using budgeting. When I have managed to get some of the balances down a bit I will do a soft search to see whether I am eligible. I have a Barclaycard already that was 0% but I didn't manage to pay it off and it is now 14.9%. So basically I am always looking for the cheapest credit, whilst I am still paying down the debt but for now I don't have the best options.