Your views and questions.

Moderators: TalbotWoods, JaneClack

By A friend in need
#195648 Hi,

I've been reading these boards for some time and based on other peoples experience entered into a DMP with Payplan.
This has been running for 2 months and has been so far without hassle however I'm finding that some creditors are still charging interest and fees, increasing the debt as the agreed monthly payments are smaller.

Is this normal? Will they potentially stop interest in the future once they see good faith and a regular payment history? Should I tackle these companies (Barclays bank and HFC Visa card) or should I just leave everything to Payplan.

I'm simply concerned as my plan is over 8 years which I can cope with however if this continues it may potentially add years until I reach total freedom.

User avatar
By Yogi Bear
A friend in need wrote:This has been running for 2 months and has been so far without hassle however I'm finding that some creditors are still charging interest and fees, increasing the debt as the agreed monthly payments are smaller.

Is this normal?

Unfortunately, yes. While some creditors are co-operative and will freeze interest straightaway, others are reluctant to do so, and will continue to add it at least for a while, temporarily negating the payments you're making. There's not much you can do at this stage: as long as Payplan are aware of what's happening, I believe they will normally contact the creditor(s) and ask again for it to be stopped.
#195820 We've now been under our DMP for 18 months and found some creditors froze interest straight away whilst it took others up to around 6 months so don't give up hope!

Our big problem is that now, 18 months in, Morgan Stanley have decided to start charging interest again which has cut our monthly payment in half :(
By janedingdong
#195844 It is worth writing to the creditors yourself and reiterating that you are on a DMP or will this upset Payplan/CCCS?

I only ask because I am embarking on my DMP with CCCS now. They have agreed everything over the phone and I am just awaiting a copy of the final paperwork.

My problem is similar to yours. Interest accruing at the moment is about £600 on all cards and unless this gets frozen quickly then my monthly payment of £185 will seem pathetic. Every month that goes by will add another 2/3 months to my term.
By disneylover43
#195857 Hi, We are in a similar situation as you,
We have been with payplan for 4 months now,i just received my halifax credit card statement and every month they add a late charge of £12 and also £42 interest,I have just emailed Payplan and they are going to request that the late charge be taken off and that interest will be stopped,I dont know how the debt is supposed to decrease because the charges and interest are 4 times more than the monthly payment :?
By A friend in need
#195893 Hi,

Thanks for all the replies. It makes things easier knowing others have been through similar feelings.

I'm sure things will work out and already feeling better about the future and living a cash only budgeted life only highlights the waste we spent before.

In time I can reply to others starting out down this road and offer them the help and support that I've recieved.

Cheers folks, your're the greatest
By chandjay
#195935 I have never given a monkeys what interest my creditors charge. They are just meaningless numbers, they mean nothing.
My first priority when I started my DMP was to get my monthly payments down to an affordable level. This was to enable me and my wife to live a reasonable lifestyle - not extravagant, just reasonable.
I have now succeeded(after 14 months) in doing just that.

It doesn't matter if last year I owed MBNA £3k and now I owe them £3.5k. What matters is that I'm living a fairly stress free life. Big Deal !! so the debt has gone up £500, that's no worry to me, that is only a worry to MBNA, as, if I couldn't afford to pay them them their £3k, then how the hell do they think that I'm going to pay them £3.5K. It's not going to happen, they'll never get it.
What's funny is that MBNA have already offered me a Full and Final Settlement of £2k(which I refused) so their £500 in charges and interest would have been wrote off anyway, So like I say they'll never get it. The debt will be cleared either by death, bankruptcy, or Full and Final Settlement. That is why it doesn't bother me what interest they charge - THEY WON'T GET IT .... EVER.
User avatar
By scotcrew
That is why it doesn't bother me what interest they charge - THEY WON'T GET IT .... EVER.

Chandjay, your some cookie ....a creditors nightmare 8)
By red24
#195937 I totally agree with you chandjay for exactly the same reasons.

I have no idea if my creditors have charged me interest, added interest or in fact doubled the debt, I have never had a statement from any of them since the DMP started almost 3 years ago.

The amount I owe will never be paid but the main reason for starting a DMP was for a less stressful life.

I have no property, no assets, no nothing really, my credit rating couldnt be blacker but unless I wanted more credit it really doesn't matter.

Unless you're in with a fair chance of paying the debt off within a reasonable time frame, its really not worth causing yourself more grief worrying about the interest.
By chandjay
#195949 Hi Red,
I'm glad that someone else on here thinks like me. I pay ALL my creditors their fair pro-rata payments on the 16th of every month then forget about them till the 16th of the next month.

It's the same with CCJ's. If my creditors threaten me with a CCJ then I always say " Get on with it then". I then go on to explain to them that they will bear the court costs as if I can't pay them what I owe them, then they've no chance of them getting another £200 in court costs.
One of my creditors threatened to bankrupt me. I wrote to them and just put on the letter " WHOOPEE" . When nothing had happened after a month, I wrote to the creditor complaining that they weren't acting quick enough, and I told them that if they didn't hurry up and carry out their threat to bankrupt me, then I was going to sue them for "falsely building my hopes up of having a future debt free life". They never did carry out their threat( I wonder why). Every time that they phone or write now, I always say that my debt to them doesn't matter, as they're gonna bankrupt me. I bet they wish that they'd never said that now. It backfired on them bigtime.
I've said it before, and I'll say it again.- I don't mind paying my creditors back, after all, I've had the money. But it is on MY terms.
I've just sent off a letter to one of my creditors yesterday. In it, I called them a "SET OF BUMS"... now say what you like about CCCS, Payplan etc, they'd never put that in any of their letters to creditors.
I recently "built in" a holiday allowance into my I/E of which I've just taken advantage of .... A week in Majorca staying at the Hotel Cala Blanca in Palma Nova. I recommend it - Sand, Sea, Sangria and *******(well, not too much ******* .... well, NO ******* actually) but it was still good to have a break. This DMP lark ain't so bad after all !!
By red24
#195974 Good for you..............

I just think going bankrupt means that the creditors get nothing at all, at least on a DMP they get something, I borrowed the money, they loaned it to me on their terms which I agreed with, at least I can try and repay some of it. No point complaining about the interest etc now, it's totally immaterial.

Yes I only ever think about them once a month, if they decide to go for CCJs it wouldnt make any difference to me, BR would be their decision.
By rikw
#196223 Thanks, This the first time I have smiled for ages, and pleased to hear that they arent undefeatable, I am going to adopt the same line as Chandjay and say up yours to them.
By neilb1980
#196277 Chandjay quality replies like your style mate!!! :wink:

You are totally right well in my situation i have been paying my debts on time and i still cant get Credit. So i've thought whats the point i'll pay them on my terms and as you say have a better quality of life!

Only thing is i'm in Rented accomodation and when the black marks start to appear then we probably wont be able to move :cry: as they all do credit checks now dont they!
By red24
#196379 All the agents do credit checks and you pay for the priviledge of being told you don't pass it.

It's probably best to be perfectly honest with them and save the expense, the only way round it seems to have up to 6 months rent up front etc.

On the other hand private landlords apparently don't credit check.