Stopping Interest On Credit Cards

southernscouser

I've read a few posts about people talking to their credit card companies and explaining that they are having difficulty with the payments and the companies agreeing to stop the interest.

I've got a couple of questions if anyone could answer them!

1) Why do the companies accept this?

2) Will they accept if you are up to date with all your payments?

3) Does this affect your credit rating at all?

mountainofdebt

Just guess ing here but

1) I suppose if things have got that bad then there is little point in the companies making the situation worse - at least if they stop adding interest there is a slim chance of the debt being repaid.

2) No - why would they?

3) Would guess so.

Xbigman

Companies do it because they know the courts can order them to do it and they want to be seen as being responsible.

But they only do it if things are serious and usually if you can't even pay the interest on the debt. If you can pay the interest and even £1 off the debt they will try to cling to you forever. If you have not yet defaulted but cannot pay the minimum payments then send them a statement of income and expenditure showing how much you can pay and request that they freeze the interest and charges. You will probably have to request that several months in a row before they give it serious consideration. Some companies hardly ever freeze interest, even going through CCCS or CAB. MBNA is one of them. If you can show you have been unable to afford the payments for some time, maybe you have been using one credit card to pay another, then that might help.

Does it affect your credit rating. Yes it does. But then again, if you are in serious debt you don't want more credit anyway. If you are merely looking to cut down on the interest you pay then it doesn't work.
Regards



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