# Freezing interest on Credit Card



## Ron J (17 Jan 2011)

Hi all.

I owe circa 10k to B of I on a credit card.  I'm not in a position to make the full monthly repayments and was wondering about offering a lesser monthly amount and asking them to freeze the monthly interest to stop it rolling over and increasing each month.  

I saw a reference to this in the financial column of a weekly paper recently but it was just a bare reference to requesting the bank to freeze the interest and didn't go into how one would approach the subject with the bank.

Does anyone know if this is possible and if so how best to go about it.


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## horusd (17 Jan 2011)

Yes it should be possible. You need to formally request it in writing. Explain your financial position, give them a DETAILED budget plan outlining outgoings, income etc, and what you propose to pay and why you need interest frozen. There is no definite guarantee they will agree, but the more comprehensive your budget plan is, the better your chances imo. I recently downloaded a budget planner from AAM. Here's the link: http://www.askaboutmoney.com/showthread.php?t=145557 It might help you get a firm handle on you money, and be an asset in bank negotiations. Try to avoid being "railroaded" into an agreement by bank staff. They are skilled operators (just doing their jobs tho), and you need to go slowly and be sure of what you are agreeing to. Make sure you give yourself room to think things thro before signing on any dotted line. Suggest you also add-up what you need to live-on (apart from general expenses) such as the odd movie, coffee, newspaper, night out etc. You need to keep some kind of life going whilst you work your way out of debt! Have you also considered switching to a 0% card? on an intro offer? If this is an option for you, check out the offers in the "best buys" section.


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## Ron J (18 Jan 2011)

Many Thanks Horusd.  The budget sheet is excellent.  When completed should give me a very good picture of where I'm at.  When completed I will write to B of Iand see how it progresses.  I need to get a handle on this asap as I don't want to get into a default scenario.

Thanks again.


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## Hybrid Boss (21 Jan 2011)

why not ask them to turn it into a loan. You pay less interest on a loan and you have a set start date and an end date.


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