Do I join DMP or not??

carli_3

My debts have become uncontrollable, I have 1 loan with Barclays for 3,500 a loan with welcome home finance where the balance is 5500, equidebt 1313 and harvey & thompson 681 and 2 pay day loans which total 2000, the pay day loans are the reason I have lost the ability to control them. I have spoken with Pay Plan who are happy to help, they have said I can pay them 265 per month, I was previously paying 243 just to welcome finance per month, which gibes me reason to believe there is light at the end of the tunnel. I have spoken with my account manager at w/finance today who advised I should not go with pay plan as they wont stop the interest with there loan so will be paying for the next 20 yrs.. they have said they can lower my mothly payments over a longer period, but the pay day loans are about 250 a month interest I really dont know what to do for the best

boo80

OMG, I can't believe these companies get away with such huge interest rates!!! I've just started a self managed DMP and it's such a huge relief to not have to find money I just don't have every month. Most of my creditors have frozen or seriously lowered their interest rates for me, will WF not budge at all on this? Good luck.

Tixy

Talk to payplan again and tell them what welcome finance said. Welcome finance havn't said they stop the interest if you reduce payments but pay them direct have they? A lot of creditors are good are stopping charges and interest once a charity DMP are involved but it is at their discretion - I would think that the benefits of being on a DMP and paying less on a monthly would outweigh this even if Welcome finance won't.

carli_3

Thank you to both of you, I will contact pay plan again 2moro, it might be just Welcome Finance are tryin to frighten me (which they are doing)

Tixy

I would think that might very well be their plan.