Stepchange - But now interest is being charged
ColinJones2705
Posts: 1 Newbie
We have a large debt with Credit cards etc and used Stepchange.
All was great but a number of lenders are now charging us interest again as the payments Stepchange are making on our behalf are more than the minimum repayments so we are back to square one.
Anyone any help or advice on this as we expected to be debt free in 4 years
All was great but a number of lenders are now charging us interest again as the payments Stepchange are making on our behalf are more than the minimum repayments so we are back to square one.
Anyone any help or advice on this as we expected to be debt free in 4 years
0
Comments
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Hi,
Usually it’s a recomended thing for you to get all your accounts defaulted before starting any kind of debt repayment program, that normally involves non payment or token payments, for say 6/9 months, or however long it takes to get defaulted.
(Once an account defaults the debt is frozen, and no further interest or charges can be added)
Non of the debt charities will tell you this unfortunately, as they want you to be repaying your debts ASAP.
You can complain, but as your paying more than the contracted payment, it might be difficult to get them to agree.
Your only other option is to do as I described above, long drawn out process, but will work eventually, you should make a complaint first though, and see how that pans out.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi there and welcome to the forum.
While there are many positives to having a debt management plan (DMP), unfortunately it cannot be guaranteed that creditors will agree to freeze interest. It's not actually the case that interest has to be frozen after a debt has been defaulted. It is still at the creditor's discretion to agree, although many do.
Your post suggests that all your creditors agreed to freeze interest in the first instance but some started charging it again. Creditors only usually agree to do that if they can see your debts are not affordable, which would also make it likely that they would have called in the full balance of the debt (and therefore you lost your right to pay by monthly instalments).
Unless your creditors have specifically told you they are charging interest because the payments are above the original contractual payment there could be another reason. Either aware it's best to have a chat with Stepchange about your concerns.
Susie
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0
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