Please help..

skint1971

After falling behind with my credit card payments my card company have agreed to a monthly payment plan of £1 pm and to freeze the interest, but they are charging me £15 pm to do this.
Is there anything I can do about this charge as it is higher than the interest would be and it is just adding to my debt with them.
I have tried to discuss this with them but they refuse to remove the charge and do not reply to any written contact.

maninthestreet

So you can't afford a payment of only £16 per month? How much can you afford? What is your current credit card debt, and what would the normal monthly minumum payment be if you were not on this monthly payment plan?

skint1971

No I can not afford a payment of only £16 pm. This debt is £1700 and I pay more when I can, but total debt with other creditors total around £50,000 so my money is spread out fairly each month. All my other creditors are being reasonable and are not adding to my debt.

Tixy

Are you doing a self-managed DMP or using a free or commerical provider of DMPs?

As you have defaulted on the agreement there is very little you can do to stop them applying the charge other than just keep on asking them to reconsider. National debtline has a template letter to do just this.

Are you splitting your total monthly payments for debts equally based on the balances? i.e is this debt getting 3.4% of your total? If they are getting less than this they may think you are favouring other creditors and that may be why they are reluctant to stop the charge.

skint1971

Yes I am doing a self-managed DMP. I have used the template but they ignore all written correspondence and all my payments are split equally between my creditors plus any spare cash gets split between them.

maninthestreet

skint1971 wrote: »

No I can not afford a payment of only £16 pm. This debt is £1700 and I pay more when I can, but total debt with other creditors total around £50,000 so my money is spread out fairly each month. All my other creditors are being reasonable and are not adding to my debt.

If £15 is more than the monthly interest on a credit card debt of £1700, you are being charged less than 1% interest per month, which is less than I'm currently paying MBNA for a CC debt of only £1200.