Need Advice Please - Depts

hollyivy12

hello,

basically i got into dedt over 5 years, almost £30,000. i buried my head until tsb froze my account and forced me to face my problem as i was struggling to make all payments to loans and cards. anyway they put me in touch with paylan who worked out a plan for me. for almost 18 months i have been paying £600 (supposed to be 4 years to pay off all debt). i opened a new bank account and i thought the interest was frozen by law.

since january tsb have been harrassing me and my elderly mother for more money. payplan say they did not have to freeze the interest and have ignored their requests for 6 month agreements for new payment amounts. they told me to contact them myself. i did and they said to take another loan out i cannot afford. in the meantime they have been using the overdraft on my old account to add more interest which is now almost £5000 extra.

i am at my wits end. i live with my mum and have no assets so would i be better going bankrupt now? after trying to do the right thing i am not paying off the dept if more interest keeps being added at this rate. sorry for a long winded story but i would really apreciate some advice.

RAS

hollyivy12 wrote: »

i opened a new bank account and i thought the interest was frozen by law.

No whilst the debt is with the original creditor they can charge interest if they want

since january tsb have been harrassing me and my elderly mother for more money. they told me to contact them myself. i did and they said to take another loan out.

If this was with a debt collector, this would contravene the OFT Guidelines. Do not do it.


i cannot afford. in the meantime they have been using the overdraft on my old account to add more interest which is now almost £5000 extra.

How much is charges and how much interest?

Hi it would help to have an idea of what the debts are and your income.

Also, please consider

1. Have you late charges on any of these accounts?
2. Was there PPI on any of these aco!!!!s?

hollyivy12

thanks for your reply, only having trouble with tsb which is biggest part of debt. originally £20,000 2 loans and a card and now they have used the overdraft to add on interest. i dont know which way to turn now as i thought using this payplan like cab would sort it out. i have struggled to pay £600 a month and now feel i am sinking again. is it better to go bankrupt or stop paying tsb and make them take me to court? i would have thought they would be happy to be getting £480 a month out of me now.

RAS

Hi

Confused.

How much was the original debt on the OD? What is the interest rate? How much have they added for interest and how much for charges?

Have you no late charges added to any of these accounts?

And have you no PPI on any of these accounts?

MrsTinks

don't worry about it - payplan and cab have the same power: none. Creditors listen to them, although sometimes a little grudgingly to start with, but eventually they will settle down. As for interest payments - again don't worry too much - let them pile it on for now - you can reclaim it and off set it again the debts anyway more than likely
I am surprised though that you find yourself struggling living on what you are left with after the DMP payment though - could you post up your SOA here for us to have a look at and see if there is anything that we might be able to advise you on?

Do i think it's a plan to go BR? NO! You have every chance of being debt free in what? 3-4 years?
Also more than likely you can reclaim PPI on the loan if it has it - Lloyds TSB certainly did the hard sell on me many years ago when I had a loan with them

Continue paying - if you can be debt free in less than 5 years through a DMP then I honestly don't think BR is the way to go right now...

MyLastFiver

Have a look at National Debtline's website. There's some advice on there about what to do if a creditor keeps charging unfair interest. One of the options is, as you say, to stop paying them and challenge them to take you to court. I'm sure they have a template letter for this. Read carefully though, as I'm sure there's something about courts only ordering a stop on interest charges if the balance is under £10000 (or something like that).

I think the principle is that why should you keep servicing a debt you have no hope of ever repaying, due to their interest charges?