Wasn't expecting this!

[yahwob]

Hi all,

I've been on a self set up DMP for 18 months now with three creditors and it's been running well with no problems. One of the creditors are Barclaycard and in this mornings post I've received a letter from them saying that as I've been making my payments regulary and havn't missed one they are giving my card back to me!

I currently owe them around £7,200 and they have given me a credit limit of £7,800 so I can't go mad and spend thousands lol.

They have given me the option to ring them and say I don't want my card back and there are pros and cons really,

A. Do I really want a new card, can I be trusted with it, on the other hand I only have £500 available on it but it might be useful for any future emergencies.

B. Interest Rate! I am currently paying them £100.00 a month on a reduced rate of 3%. If I take the new card I will have to pay a minimum monthyl amount of 1.5% of the balance which is only a few pounds more than the £100.00 anyway so thats not a problem. However the annual interest rate will be increased to 11.9% which is obiviously a lot higher than 3%. Does anyone know what difference this will make on a balance of £7,200, at the moment my monthly interest is around £28.00, does anyone know what the monthly interest amount will go up to based on 11.9 %

C. If I ring them up and say I don't want the card back will they do the dirty on me and in three months time stop the DMP altogether?

D. Does the fact that Barclaycard are willing to give me my card back with a level of available credit on it mean that my credit score is relatively okay?

Sorry for the questions but I'm really in two minds as to whether I should take the new card, i can't help feeling that with the increased interest rate it will be a backward step towards paying off the balance although I do realise 11.9% is less than the normal rate still.

Thanks guys

[kallis3]

Personally I wouldn't take it and I think it's very irresponsible of them to have offered it to you.

I doubt they would do anything about your DMP, but stick with it, don't run up anymore bills. When I was in one I had a card for emergencies only and just ran the whole lot up again.

[plasticdaft]

I think you know yourself that you will get nowhere on the higher APR so stick to your plan,and tell them to keep the card,and carry on reducing the debt.

This seems to be a tactic they are using rather a lot these days!!

Paul

[Shining]

If you're happy with the DMP then I would stick with it, if it's working for you, ignore the letter. I personally wouldn't have the card but that's me only you can decide what you want to do. x

[MelanieGiles]

If they send you a new card, why don't you just cut it up and therefore temptation is taken out of reach. Seems odd that they would be wanting you to borrow more money from them, but it is clear that they now see you as a responsible customer so give yourself a pat on the back for that.

[yahwob]

Just to let you know I rang Barclaycard and told them I didn't want the new card, as someone else said if I took the card for emergencies you could bet your bottom dollar I'd soon max it out! I was also worried about the increased interest rate, after all I want to get the debt reduced not increased!

[kallis3]

I think you did the right thing. A sensible decision.