Gopher money suggestions for clearing credit card debt

monday_blues

Hi I have credit cards around 15k costing around 330 for more or less the minimuum payments every month and i am finding the interest seems to be getting more and more, and this is also really cutting into household living expenses for the month. I will post SOA later, but yesterday I browsed online via money supermarket.com to see if a personal loan would offer a fixed interest rate, but when i ticked the box sayiing it was to consolidate, ii was promptly contacted by Gopher Money (never heard of them) anyway during the coonversation they were pushing me towards a management option (i asked if it was a dmp and they said no - different). they take £35 per month of your payment as a management chharge but they negotiate with your creditors to agreee to a repayment amount thhat suits me, based on a budget, and hopefully get interest stopped. all statements stop from the credit card companies.

I hadnt thought to go down a route like this to be honeest, as my payyments are still being met, its just realistically it will take many many years at this rate to clear off these cards. I am at a loss what to do. This company said I wouldnt get a loan because secured LTV is 74% but wiith the debt added it takes our LTV to over 80% (house value approx 200k, mortgage 140k). They said unsecured is only being offered to "very clean" customers.

I dont know whhat to do about these debts, to repay but still allowing enough money to live off. I took a massive drop in salary when my child was little, and then had to droop further when faced with the realiity off the recession and fearing redundancy. In the future I hope to return to my profession but in the meantime I need a steady wage, therefore think i should stay put in my not so well paid job, because at least it is secure.

Should I write to my credit card companies and say that things are tight, will thhey reduce thhe interest rates, or they run the risk that i will start defaulting?
or,
Should I approach my bank and ask for a personal loan
or,
go to this Gopher company
or,
any other ideas welcome?

your help is much appreciated. thanks,

browneyedbazzi

Hiya,
I'm no expert, but what Gopher are offering sounds a lot like a dmp to me. Before you even consider using a company that takes some of your hard earned money for management fees you should talk to one of the debt charities. If a debt management programme is the right thing for your situation they'll be able to assist for free - and all your money will go towards paying the debt, not lining the pockets of the likes of gopher!

There's a sticky at the top of the board about where to go for professional impartial advice - well worth taking a look.

Best of luck x

monday_blues

thanks browneyedbazza i think i agree with your comments, just dont know how best to play this, however, i did start the conversation off with them thinking they were sharks....dont know if i'm right or not ???

browneyedbazzi

It's pretty safe to assume that they are...they wouldn't be calling up, offering you an 'opportunity' to pay for a service that is available for free if they weren't!

They're a profit driven company and just want the fees...they don't care what's in your best interest at all. The debt charities don't have that motivation so you're much better off trusting them.

x

monday_blues

anybody eelse got any suggestions?

abby1234519

You COULD write to all your creditors explaining you cannot meet payments forthwith (send a soa to prove it) and can you have interest frozen and make a smaller payment and you will reevaluate in 3 months (you then do the same thing). If they agree then you can snowball your payments and try to get at least one cleared off asap?

monday_blues

thanks so much for your response, i will prepare a letter and an soa, will that action alone affecting my credit rating at this stage? why are the rates getting hiked up anyway, i thought the lenders were under such scrutiny for their bad lending, that they would be toeing the line, a bit at least?

monday_blues

this gopher money crowd have phoned me 5 times on my mobile while i was at work today, the last time i picked up but jjust said i wasnt interested in their offer!

monday_blues

Does anyone have a sample letter I can send to my credit card companies to request that they reduce interest rate or freeze interest for a while? Additionally, should I ask them to refund some of the recent charges for late payments, as well as changing payment date? (one card barclaycard always wants paymentn around 27th of month but I always struggle to pay this on time as i get paid end of the month)

Also, should i write to my bank and ask for refund of recent charges?


Any other ideas welcome, thanks a lot.

JimmyFive

Hi

I went to the citizens advice who advised me to contact my creditors and come to an arrangements over my repayments. They didnt listen to me. I was contact by Gopher Money like yourself. They explained that their fee would be a drop in the ocean compared to the amount of interest and charges i would be paying. Im in a plan with them now and I will be debt free in 30 months. Sharks they are not, they are providing a service and charge for it. Good luck anyway.

BeautyandtheBeast_3

never had a dmp - but from posts i have read - any organisation that charges you, you should steer clear. x