Negotiating interest Freeze with creditors

bamgbostbamgbost Forumite
433 Posts
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Just wondering if anyone has tried the approach of literally just writing to the lender, to explain the situation on ground, and requesting that they freeze interest and fees for a short period to allow you to actually make some headway with the debt.
For example with a credit card @ 29% interest. There comes a point when the minimum payments and interest rates are so high, you are literally 'a hamster in a wheel', not going anywhere fast.
And if you tried, did it work? And were there any catches?

I am thinking to try and reach out to some of my credit card providers for such respite. But just wanted to know if anyone else had done the same and been successful? Thanks

Light Bulb Moment-  MAR 2020: Non- Mortgage Debt £67800; As at June 2021: Non Mortgage Debt:£48319. (28% cleared in a year!)
Emergency Fund: £700 / £1000 (70% of babystep 1)
Debt Free: Jan 2025 (if continue snowball method)


Replies

  • sourcratessourcrates Forumite, Board Guide
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    Many tens of 1000’s have probably, judging by these boards, although most creditors will only do temporary arrangements, max of 6 months normally.
    If your problems are going to last longer than that, it’s debt management you need to be looking at.
    Note, any temporary arrangement will be recorded as an “arrangement to pay” on your credit file.
    So you may as well go the whole hog anyway.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • bamgbostbamgbost Forumite
    433 Posts
    Ninth Anniversary 100 Posts Name Dropper Combo Breaker
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    @sourcrates So are you suggesting that a temporary arrangement, has as much impact on credit file as a DMP and other medium/long term assistance?
    Light Bulb Moment-  MAR 2020: Non- Mortgage Debt £67800; As at June 2021: Non Mortgage Debt:£48319. (28% cleared in a year!)
    Emergency Fund: £700 / £1000 (70% of babystep 1)
    Debt Free: Jan 2025 (if continue snowball method)


  • sourcratessourcrates Forumite, Board Guide
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    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    bamgbost said:
    @sourcrates So are you suggesting that a temporary arrangement, has as much impact on credit file as a DMP and other medium/long term assistance?

    Well an arrangement to pay will be visable to a creditor for 6 years after the debt has been repaid.
    In contrast, a default will disapear after 6 years regardless of the debts status, so depends on your situation, but it can effect you for longer, yes.
    And you may find a temporary arrangement is not long enough anyway, i think the priorty must be the service of the debt, credit files will heal themselves with time.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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