Freezing Interest/reducing Payments

BRIGHTHOPE

I'm really struggling to pay the minimum repayments on my cards. I know that there are agencies that I can approach to help me, but I'm wondering whether it's worth 'going it alone' and approaching the companies directly. Has anyone any experience of having done so??

skylight

I Went it alone. It was easy. Copied the letters from National Debtline (Link at the top blue bar of this page) and sent them off with my budget sheet.

To be honest, one or two took MONTHS to agree to amended payments, but several took the first letter and offered payments and we have been paying them ever since.

Some fobbed me off and told me they would only deal with CCCS or debtline to which I had to explain that was rubbish. The threatened court action (cool - what I wanted!) and MBNA told me a baliff would be on my doorstep within 24hrs (yeah - right! Not allowed either!)

Make sure that you keep a seperate file for each creditor - so you can list who you spoke to and when, the letters recieved and sent and copies of any recorded slips for postage. Everything will be at hand when you need them if they call (and 8.04am were there favourite time for us - busy getting kids to school and to knock you off balance). Everything will be at hand in one place so you are ready for them.

And two last things. NEVER agree to pay more than you can afford - you will be threatened with all sorts, (baliffs, courts etc) most of which is balderdash and is only said to scare you. Stick to your guns.

And make sure your budget is true and accurate.


I have the stomach to do all this. I decided not to waste a charities precious funds on my case and let someone who really needed it, use it.

But you need to decide if you want to do this or let the CCCS handle it all on your behalf.

Good luck.

carolbee

Hi, I went it alone too, this time last year, got all creditors to accept 'pro-rata' payment, following national debtline guide letters. have 0% interest on following:

1 x bank loan
2 x overdrawn bank accounts, opened a new bank account before I wrote to them and arranged to have salaries paid in new bank account, strictly in credit this one, no overdraft limit on it by choice.
3 x credit cards
they all said they would review in six months, not heard anything yet!

we have endless years ahead paying off these debts, but when I can I pay a lump sum off of the lowest amount and will carry on doing this.

this site is a huge help, having followed lots of tips, got the book and get the newsletter every week

mine all accepted first offer, with the exception of the bank accounts, negotiated a slightly higher offer with them which we could manage anyway.


bank (lloyds) phoned constantly, changed the phone number!

good luck you can do it

sparkle84

Both Charlotte and Carolbee are absolultely right but just to let you know about cccs I was diagnosed with ovarian cancer in the summer and felt I couldn't cope with my creditors so went to CCCS they were wonderful and helped me a lot.

Also as the others have mentioned creditors and DCA's will talk rubbish about what they will do to you - MBNA told me that I would be visted by people in a big white van with Debt Collectors written on it in black - she wasn't too pleased when I laughed in her face and told her that they anyone trying that would be pulled over and arrested as that is illegal in this country (not just against OFT guideline but illegal) - if they hassle you change you number - When I started feel better and calmer about my debt and as I was off work I started to find it all quite amusing to answer the phone and wind them up - passed the time

Keep reading the site and good luck we are all in it together :rudolf:

rainbowseeker

Hi carolbee,
I've been picking up a lot of info on this great site and am thinking of doing what you seem to have done successfully - namely, writing to creditors to have interest frozen/reduced payments. Needless to say I am in a LOT of debt - 9 cards, 3 loans and 1 bank overdraft. I can't even begin to see the light at the end of the tunnel when the monthly interest is about the same as the minimum that I'm paying. Because all the cards are nearing the limit, even though i paid the min, a couple of cards went over the limit as I didn't think to allow for the interest added on, and they then slapped an overlimit fee on. The phrase 'drowning in debt' sums up exactly how I feel. Have felt really hopeless and suicidal at times, still I suppose we've all been there, and have no one to blame but self, so must just get on with it.
Seems like a good idea to open another current account, but I've been on the website of Natwest - they have a branch in my town. To open an account in branch you need proof of name and address - standard, but also if you have another current account with another bank, they say they may need to see the last 6 months statements. Who did you open another current account with and did they require you to provide this?
Would really appreciate your help.

carolbee

Hi, opened an account with Abbey, who we have our mortgage with, luckily with no arrears on it so they were OK. seem to remember that National Debtline have a list of 'basic bank accounts' or try the Post office

let me know if I can be any more help to you