DMP - Zero interest challenge

Zulu_Dawn · 2 October 2006 at 5:24PM

I have a substantial debt and am currently trying to sort out a self-managed DMP. I have an Egg loan and they have agreed my reduced payment but are carrying on charging interest (7.7% as it happens).

Has anyone managed to get all interest frozen?

I have managed to get most of my credit card debt frozen but am struggling to get much response at all with my loans and am wondering whether zero interest is an attainable goal.

Thanks very much for any help/advice.

ZD

tesuhoha · 2 October 2006 at 5:30PM

Ive got zero interest on my ccs but it has been achieved by tarting, applying for 0% cards. I have just taken out 3 new cards at 0% and our total debt of £15,995 has been transferred to it.

Zulu_Dawn · 2 October 2006 at 5:37PM

Sadly my tarting days are over as I have now destroyed my credit rating through making reduced payments.

Watch out tesuhoha - it's a dangerous game.

livinginhope · 2 October 2006 at 7:31PM

All my creditors stopped charging interest at the start and also have dropped charges,I am on a DMP with Payplan.
Good luck with your DMP!

tesuhoha · 3 October 2006 at 12:08AM

Zulu_Dawn wrote:

Sadly my tarting days are over as I have now destroyed my credit rating through making reduced payments.

Watch out tesuhoha - it's a dangerous game.

Welll the 0% is helping me to pay off my debt which 1) will improve my credit rating and 2) i intend not to borrow again so my credit rating doesnt bother me, short term. Im closing the accounts as I go so hopefully it wont affect me too badly. Live now and pay later is my motto when it comes to tarting.

southernscouser · 3 October 2006 at 2:01AM

Zulu_Dawn wrote:

I have a substantial debt and am currently trying to sort out a self-managed DMP. I have an Egg loan and they have agreed my reduced payment but are carrying on charging interest (7.7% as it happens).

Has anyone managed to get all interest frozen?

I have managed to get most of my credit card debt frozen but am struggling to get much response at all with my loans and am wondering whether zero interest is an attainable goal.

Thanks very much for any help/advice.

ZD

Have you thought of asking advice from the CCCS how you might be able to get interest stopped?

Perhaps you could slip bankruptcy in to the conversation with Egg!

Janey51 · 3 October 2006 at 5:13PM

We are with CCCS and they managed to get interest frozen on all our loans and CCs within a month.

Zulu_Dawn · 3 October 2006 at 5:50PM

Hi Janey51.

Wow that is fantastic. Do you mind me asking for a bit more information re debt providers and values.

I've managed to get Egg today to agree to freeze interest but am still struggling with part of MBNA and also LVBS.

milliejon · 3 October 2006 at 8:04PM

Hi Zulu Dawn. I'm managing my own DMP and have done for nearly 2 years now. I've got all my interest and charges frozen except my two loans which included the total interest on the debt at the beginning (fixed rate I think it's called). I don't have any monthly charges or interest added on to any of my 11 debts.

It did take over 6 months to get this fixed, and I send in a review every time my circumstances change or every 6 months (whichever comes first).

Best of luck with your DMP.

Zulu_Dawn · 3 October 2006 at 9:52PM

Wonderful news. I've got MBNA to freeze interest for 12m. The amount they want is higher than I hoped (£120 pm when I offered £42) but as the interest only was costing me £128 per month, I call this a result. They went through my SOA and eliminated everything that was not 100% predictable (car servicing and costs, house maintenance expenses, cash, subscriptions, gifts, charitable donations etc.)

I've just got to get through to LVBS and then contact the low interest cards I've been ignoring.

BTW millijohn. Did you keep access to any credit or savings for emergencies? I worked out I had £1000 per month available and am now up to £1,300 in monthly repayments, through various adjustments I've given to keep things more friendly or without interest!

I should be OK as I built some slack in but it's getting hairy.

ZD

milliejon · 4 October 2006 at 8:05AM

I don't have a pot of money for emergencies or birthdays etc. Neither do I have money each month for hair cuts etc. What I do have is a rather generous clothing allowance (based on that suggested by the National Debtline). This is usually enough to put aside and use for everything other than living costs like rent, food, utility bills etc.

DMP - Zero interest challenge

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