Payments to Payplan

c7sdus

skintandscared wrote: »

This has really terrified me now!

When you make your payments to your DMP provider (in my case, CCCS), the payment they make to the creditor is obviously less than your minimum payment. If interest is not frozen or reduced, the debt will just constantly increase??? If, after 5 years or so, you've actually paid what the due amount was on the date you started your DMP, the accruing interest could amount to twice as much as you've already paid??!!!! How would anyone EVER end a DMP and what would be the point in starting once instead of an IVA or bankruptcy?!

I am beginning to think that way as well, have had July 2011 set as an end date but now the realisation of all the interest is really hitting us hard, could add years onto our time to be debt free

skintandscared_2

c7sdus wrote: »

I am beginning to think that way as well, have had July 2011 set as an end date but now the realisation of all the interest is really hitting us hard, could add years onto our time to be debt free

But the thing is, there are lots of people on here who are well into DMPs and none of them have mentioned any scenario like this?? Lots of them say that creditors stalled freezing interest for the first couple of months, but then they did and the situation is reviewed every 6/12 months. I haven't read of a single instance where the interest was kept running at the full normal rate until the END of the plan??!!

JayJay7777

I am with Payplan as well, owing just over £100,000 which is scary every day. However I have found that my interest has either been frozen completely or reduced to around 3% if not lesser.

For me LloydsTSB are one of the worse for hassling you all the time regarding the debt, I know it is my fault I got into the position and I am trying my hardest to pay back what I owe

I would contact all of your creditors and ask them to conform what interest you are paying, then I would pass that onto Payplan and ask them to help you reduce it

Good luck!

c7sdus

JayJay7777 wrote: »

I am with Payplan as well, owing just over £100,000 which is scary every day. However I have found that my interest has either been frozen completely or reduced to around 3% if not lesser.

For me LloydsTSB are one of the worse for hassling you all the time regarding the debt, I know it is my fault I got into the position and I am trying my hardest to pay back what I owe

I would contact all of your creditors and ask them to conform what interest you are paying, then I would pass that onto Payplan and ask them to help you reduce it

Good luck!

Hi,

We have 4 creditors, Egg (0% int), Capital One (0% int), MBNA ( 0.2911% / mth) & Lloyds TSB with whom we have 4 debts 2 x C/C & 2 x loans. 0% Interest on wifes C/C full interest on my loans & C/C & MORE interest on wifes loan (10.94%). I am going to write to them requesting interest on loans is stopped as advised by Payplan. The problem with my C/C is I am now paying more than the min reqd so they have started adding interest, interest was stopped until ammount owed reduced so this could happen to others further into DMP !!

Deep_In_Debt

This all sounds a bit strange to me too. I'm on a dmp with CCCS and they negotiated with creditors to freeze or reduce interest at the start of my plan. 10 months on, creditors seem to have still kept to their arrangement and many have written to me to tell me this, but will review in 3 months. I've not heard of a review at the end! However, I have heard that creditors can and often do, start charging interest again after a few months/years as they are under no legal obligation to accept the dmp.

Although I am with CCCS, when my review was due, creditors tended to contact me directly and I found it easier to negotiate with them directly rather than go via CCCS but still pay the dmp via CCCS (hope this makes sense!). I just then contacted CCCS for advice and to let them know what I had agreed so that they could adjust my payments accordingly.

pepe2008

Deep_In_Debt wrote: »

This all sounds a bit strange to me too. I'm on a dmp with CCCS and they negotiated with creditors to freeze or reduce interest at the start of my plan. 10 months on, creditors seem to have still kept to their arrangement and many have written to me to tell me this, but will review in 3 months. I've not heard of a review at the end! However, I have heard that creditors can and often do, start charging interest again after a few months/years as they are under no legal obligation to accept the dmp.

Although I am with CCCS, when my review was due, creditors tended to contact me directly and I found it easier to negotiate with them directly rather than go via CCCS but still pay the dmp via CCCS (hope this makes sense!). I just then contacted CCCS for advice and to let them know what I had agreed so that they could adjust my payments accordingly.

Done it again DiD, you're always saving me a load of posts. Nail...head..bash

jellybean08

I'm in the 3rd year of my dmp with cccs, all except barclaycard stopped interest (they take 1.30 a month) and nothing has changed at the reviews except that payments for some have increased as one of them was paid off. i receive monthly statements from some of the creditors and its roughly in line with what cccs have. I just assumed that on the last month of a dmp (which is beginning of next year) the outstanding amount was taken and that was you finished. Will i find i then have a surprise interest amount to pay off? eee!

k9gemma

Hi

I agree LLoyds TSB have been a nightmare to deal wih and constantly hassle you BUT have found that when you keep replying to their letters and stick to your guns they will refer you to BLS owned by them a collections centre that will stop interest and accept your offer of payment I think it better to deal direct with them they have intimidated us but now write to us offeing special deals, cheap settlement rates etc.(they did in our case anyway)

Dont give up You could ry elling them what they would recieve if you were to go bankrupt I read somewhere this really shakes them up as they realise they may get nothing

Hope this helps

Deep_In_Debt

pepe2008 wrote: »

Done it again DiD, you're always saving me a load of posts. Nail...head..bash

Put that hammer away! :rotfl:

Thanks pepe!

OP, I'm not a huge fan of Payplan for various reasons which I have ranted about on here and may continue to do so!

Anyway, have you thought about contacting the CAB, or National Debtline? They both have good websites with standard letters you can use. You may find it easier to "go it alone" on the dmp. I'm considering it. CCCS have done the initial "leg work" and i may take it over now that I feel a bit more confident and manage my own but use them for advice.

Good luck!

c7sdus

Deep_In_Debt wrote: »

Put that hammer away! :rotfl:

Thanks pepe!

OP, I'm not a huge fan of Payplan for various reasons which I have ranted about on here and may continue to do so!

Anyway, have you thought about contacting the CAB, or National Debtline? They both have good websites with standard letters you can use. You may find it easier to "go it alone" on the dmp. I'm considering it. CCCS have done the initial "leg work" and i may take it over now that I feel a bit more confident and manage my own but use them for advice.

Good luck!

I am beginning to think that this is the way I will go. I have just sent PP an e-mail requesting them to ask TSB to reduce or preferably freeze interest and I will see how they get on but I dont hold out much hope

cheers

C7