CC payment arrangements

gingerling

The Alliance Leicester have increased there interest on my CC as have Marbles.
I am now in a position where I am going to struggle to meet the minimum payment.
I understand if I go onto a payment arrangment it will prevent me getting credit for some time.
Will it effect my existing Bank account at all? Also will it effect my other credit card I have?

CLAPTON

Why does a change in interest rate mean you will struggle to meet the minimum payments?
Have they also increased the minimum payment?

Except for a limited time and in exceptional circumstances (i.e. become unemployed for a limited time) paying less than the minimum payment will probably mean they will default the a/c.
This will trash your credit rating for six years.

Other creditors periodically review they a/cs which may include checking your credit record and will see you have defaulted (see recent press comment about the EGG card holders).
This may lead to them increasing your APR or reducing your credit limit or cancelling your card).

Before you do this I would suggest you go over to the debt free wanabee board, read the stickie for newbie posters and post up full details of your income, spending and debts and see if there is another way.

gingerling

The minimum payment has just about doubled. I am not looking to default the account. They said they can come to an arrangement which will freeze the interest and I go on a ten year plan. I want to know if this will effect my bank account. Or the interest rate I am receiving on another cc card.

CLAPTON

Not keeping to the CC T&Cs is breaching the conditions. They can default the a/c.
In any event such an arrangement will probably be reflected in your credit record.
Have they said in writing that they will not default the a/c eventually?

Assuming your bank a/c is not with the A&L and you have no overdraft then probably it won't affect your current a/c but all financial companies are being much more risk aware.

Just read these boards for a few weeks to see the tails people post about increases in APRs due to account reviews.