I've done something really silly!

milliejon

I'm on a debt management plan and have been for 18mths or so. One of my creditors rang today and offered to restructure my account. They wanted to give me a loan of exactly what I owe them and will decrease my monthly payments to them and will take the same time to pay off as the plan was doing. Only 1% interest! I agreed!!!! How stupid am I? I thought they were doing me a favour - I can't believe I was so gullible.

tina68

ooops! so now you owe them 1% more than you did already, dare say your not the first and you won't be the last to fall for this...
cancel!! cancel!! cancel!!
Tina x :eek:

novice_money_saver_2

I'm not sure but I think there is a legal requirement for them to give you a "cooling off" period of 7 or 14 days and during which you can cancel the credit agreement - phone them back or read the credit agreement.

Don't panic!

milliejon

Thank you both. I can't believe I agreed - I think I was so taken aback by the fact that they weren't chasing/threatening me! I won't be doing that again.

southernscouser

Hi milliejon.

All credit agreements have a period of time where you can cancel the agreement without incurring penalties. Phone them up NOW and cancel it. Don't let them bully you into keeping it. They are NOT doing you a favour!

You are also breaking your agreement of your DMP and should the company your with (I'm assuming your with either CCCS or Payplan) find out they can cancel the DMP with you.

tina68

if they do come chasing you ask them politely if they wouldn't mind having the call recorded for your training purposes LOL!!!
Tina x :rotfl:

milliejon

Thanks everyone. My DMP is done by myself with the advice of the National Debtline. I think I will cancel it - the paperwork is on the way to me, so I'll check the T&Cs carefully.

donnalove

milliejon wrote:

I'm on a debt management plan and have been for 18mths or so. One of my creditors rang today and offered to restructure my account. They wanted to give me a loan of exactly what I owe them and will decrease my monthly payments to them and will take the same time to pay off as the plan was doing. Only 1% interest! I agreed!!!! How stupid am I? I thought they were doing me a favour - I can't believe I was so gullible.

ok ok the first thought is cancel but are they still charging interest on the origanal debt, if they are and they refuse to stop it it might not be a bad idea.
the reason i asked this is because you say it will lower your payments but still only take the same length of time to pay off, so that lead me to think you are still paying some sort of extra payment to them(charges or interest).

if i am wrong then please ignore this and cancel.

fizzel81

you should be able to cancel, dont be too hard on yourself they talk so nicely to you it feels hard to say no

westie666

As far as i'm aware, the creditor has enetred into a Distance Selling Agreement, and as person to benifit from this is you have 7-14 days as a cooling off period.

IMHO ... CANCEL!!

milliejon

donnalove wrote:

ok ok the first thought is cancel but are they still charging interest on the origanal debt, if they are and they refuse to stop it it might not be a bad idea.
the reason i asked this is because you say it will lower your payments but still only take the same length of time to pay off, so that lead me to think you are still paying some sort of extra payment to them(charges or interest).

if i am wrong then please ignore this and cancel.

Thanks for this. The loan was a fixed rate loan so they refused to cancel the interest on it. My total debt to them includes the interest for the life of the original loan. I hope that makes sense.