On a Payplan but Confused/Regretting It

cardy_2

Hi Advice please,
I was/am in a lot of debt which was swallowing most of my wages. I signed up with Payplan who arranged smaller payments with everyone on my behalf. This halved my outgoings but extended all the debts, loans and outstanding credit card amounts to a final day 6 years in the future.
One year on a lot of these companies (the main one being HFC Bank) are now contacting me with late payment charges and letters demanding I get my debt sorted.
Payplan is paying the agreed amounts but some are so small they arent even covering the interest.
At this rate am I correct that in 6 years time I will still have a poor credit rating so be no better off in that respect?
Is the best thing to start paying extra to the debters and cancel the Payplan agreement.
Appreciate any comment from anyone in a similar position.
Thanks3

mattp_3

I understand your concerns, if you can afford to pay more THEN YOU MUST - the more you can pay off in the early stages the better off you will be in the long run?

Debt Management Plans tend to suit those who have no way of paying the contractual repayments and are facing CCJ's and/or repossessions - it allows them to pay back the debt at a level that they can JUST ABOUT afford.

you are better to stay with Payplan (as they will have more weight in getting interest and charges frozen, although this can take several months) but trying to strip down your expenses as best as you can (you're certainly on the right site for that sort of advice!)

make sure you notify PAyplan that HFc are still adding charges, they may be able to help but there are no guarantees - but if you were tryin to sort this out on your own, you would in an even worse position as ALL the creditors are entitled to charge late payment fees, excess overdraft fees, additional interest etc??

being with Payplan wont take off all the pressure you still need to get as much paid each month as you can afford if you want to be debt free and get your credit rating back?

sorry, didnt mean to sound harsh?

Good luck

dollindebt

I have been with Payplan for a year (they have been brilliant) and I had a similar situation where GE Money did not freeze the interest and kept adding charges, sending letters, and phoned day and night for months. Eventually they DID freeze the interest and charges (after about 7 months), but by that time the original debt had nearly doubled.

Thankfully, all my other creditors froze the interest or knocked it off the total debt altogether. Do get in touch with Payplan about HFC and remember to post to them all the correspondence (I highlighted the bits on the statements showing the interest and nasty notes from the creditors). Payplan seems to have a lot of clout and a good reputation with creditors, so I felt it was well worth staying with them. If you are finding your budget very difficult, you may be able to tweak that with Payplan.

As for your credit rating, I believe your credit will be affected for six years following the dates the default notices were issued. I don't think there is a whole lot that can be done about that, but I could be wrong. Just speaking from personal experience--hope that helps. Good luck.

THE_LONE_RANGER_4

i can see your paying your debts in the best way you can ...but just forget about your credit score its shot and will be for 6 years at least ,and when your in debt it should be the last thing on your mind i couldnt careless what mine says adopt the same attitude

IWILLSORTMYDEBTSOUT!

THE_LONE_RANGER wrote:

i can see your paying your debts in the best way you can ...but just forget about your credit score its shot and will be for 6 years at least ,and when your in debt it should be the last thing on your mind i couldnt careless what mine says adopt the same attitude

That's easier said than done when, for example, you'll need to buy a house in the next 6 years?

THE_LONE_RANGER_4

yes i agree but it is not worth thinking about his c file will be shot and theres nothing that can be done ,this is what these credit repair companies rely on people bothered about there files but to be honest they are a true reflection of peoples position so it is only for the best i suppose