Barclays Debt Management Plan - Advice Needed!

Wall-E_3

Hi, I have £5000 balance with Barclaycard and have recently spoke with them about a debt management plan as I can only pay £50 per month to them. They have agreed this but have said that the interest will remain the same for two months (currently 27.9%) and then will change to anything from 1-10%. Does this sound right, it still sounds like I will be paying too much? Is there a way I can get the account to have no interest applied to the account so I can pay off the debt quicker or a large percentage of my offer will be paying off interest only? :cool:

DarkConvict

Reducing interest or charges is goodwill, you cannot force them to do anything.

When dealing with creditors it is usually best the DMP is run by a charity, they tend to take your situation more seriously than running it yourself.

DMP providers - https://forums.moneysavingexpert.com/discussion/2077631

NDl do provide some templates on asking for interest rate cuts, worth a look -> http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#6

It is possible you do not get anywhere with them and they keep adding on interest and the balances just keeps on increasing, in part it is done to encourage you to raise higher payments to bring the balance down, but also to increase there overall share of your debt so incase of court action they get a bigger share of repayments. Business risk mitigation in action fuels the vicious circle of debt.