I’m eating my phone with rage…..
Wednesday 7th May, 2008 - £9,485.54 in debt…
If you asked any of my friends to describe me, I don’t think they’d use the phrase “quick to anger” very often. Unless any of them were hiding up a tree outside my window earlier today, when I called my credit card issuers about my interest rates.
The story so far: In my first posting, I detailed how much I owe on each of my cards, and their interest rates. After that humiliation, I was further shamed by the comments my post received: “Why don’t you ask them to lower your APRs? It’s easy – I can’t BELIEVE you’re paying that much interest! You must be some kind of mug!” - Or words to that effect.
I tried it today, and now I’d like to know where I’m going wrong.
First, the Barclays overdraft: “Sorry, that interest rate is set in stone. We have a department that helps those who can’t cope with their debt, but you’re not in sufficient difficulty.” Thanks – that’s great news.
Second, the Tesco card: “Sorry, your interest rate can’t be changed, but that’s because you’re not paying any interest until October 21st.” Although this was a welcome surprise (I thought my interest-free period had just run out), I don’t suppose you could call it a victory.
Third, the Capital One card: “No, you can’t change your interest rate. We don’t do that. Bye.” Short but sweet.
Fourth, the Barclaycard: I phoned them in January to block my card, and they had offered me a small cut in my rate, so I was hopeful they might do it again. Their response: “Ah, it looks like your card wasn’t blocked at all – I’ll just do that now. And, hang on a minute, your interest rate wasn’t lowered either!” WHAT?!?!?!
“You can lower it now though, right? CAN’T YOU?” I asked, calmly.
“No – we cannot lower your rate at this point in time.” And the advisor and her manager repeated that phrase over and over until steam shot out of my ears and I destroyed a small village.
So where am I going wrong? Is there some sort of trick I should use? Are the Barclaycard people duty bound to decrease my rate like they said they would? Is there anything I can do about this?
The FA Cup sponsored by Fuel Poverty
Hi Ms Buck
I think that this is a clear example of all credit card customers are equal but some are more equal than others (was that Orwell)?
They want to retain customers who spend more rather than helping those that need to pay off their debt.
With regards to helping you manage/reduce your interest and payments, if the Tesco card has interest free until October, is it worth checking their balance transfer rates/policy and get that Barclaycard debt transferred to a zero/lower rate. NB - this is also a great negotiating ploy with Barclaycard:
“Can you reduce my interest rate because if not, then I’ll pay it all off now (via the Tesco card) and cancel the Barclaycard.
Tell you what: I bet £10 this gets you a 5% or greater reduction in the Barclaycard rate.