Paying Off Credit Cards

richardharvey

Embarrisingly, after telling a friend there must be a way for him to reduce the rates he's paying on three credit cards, I've struggled to find it on the site myself, so here I am.

In essence, he's working and earning OK money, but has £25k loans/credit cards to pay off. He's been using a debt company to manage payments (£1000 a month) -and they've said everything would be paid off in a year. However, 3 credit cards (inc. RBS) - are still charging full interest (obviously meaning he's going to be paying for a lot longer!). Is there a way to get credit card companies to drop the interest so the debt can be paid-off?

Any advice appreciated.

winner12

Hi there
I think because he is already on DMP they wont touch him with a barge pole his credit rating will be shot already but why is he paying a Debt management company when he could do it all for free or manage his own DMP all the money he has paid them could have gone towards his debts normally a DMP that is up and running leads to no interest or charges been added

podperson

Firstly since you say debt company I assume he is paying a fee for this. Tell him to get rid of this straight away as there are debt charities such as cccs, payplan and national debtline who will do the exact same thing for him for free - leaving more money to go direct to the debts. Also I think there may be something wrong with this company's maths if they are taking £1000 payment a month (and am assuming this is before they take their percentage off it) and saying this will clear £25k in a year!!!
Unfortunately there is no way to make creditors stop the interest, it is purely at their discretion. The debt company should have written to them all and requested they freeze interest but it is up to them whether they agree or not.