DMP freezing interest?

Chasingmytail_2

Can anyone tell me how successful they have been in freezing interest on the following accounts (using CCCS for DMP)

Lloyds - personal loan
Lloyds - credit card
Goldfish (Barclaycard) - credit card
MBNA - credit card
Tesco - credit card
Citi - credit card
Lombard - credit card
Halifax - credit card
American Express - credit card

Would also have to change banks currently with Lloyds and Halifax. Do you know if Alliance & Leicester are linked to any of the above.

fenner1

I don't know about Lloyds or Citi but the others certainly do as I have debts with them myself all in a DMP and all have frozen interest. If you bank with any of them then I would advise to change account. Alliance and Leicester as far as I know are linked to Abbey - or I should say Santander.

I am a bit confused why you have asked the question though when you say the the debts are already in a DMP with CCCS who should have sorted this out for you. Am I correct in assuming this hasn't happened?

Chasingmytail_2

Thanks Fenner1. Sorry about confusion.
We are considering a DMP with CCCS but haven't signed up yet. We thought it was the right thing to do, we had considered remortgaging but were turned down by our current lender due to late credit card payment - only one in about 3 years but a recent one!

So have filled out online budget with CCCS and they seem to get a very good name on here. Then I started to read posts about companies not freezing interest and got more than a little nervous as only 2 or 3 of the companies would on a pro rata basis be getting more than the interest they were charging.

We have thought of downsizing but after paying off debts would still need a mortgage and after being turned down for a remortgage on a house that holds a lot of equity we just don't know what to do.

I know no one can say definitely one way or another if companies will freeze interest just trying to get some views from people who have been in that position.

Thanks again.

fenner1

Not being able to remortgage was probably a blessing in disguise because then you would have owed all the money to your mortgage lender and what if you then couldn't pay that?

My personal experience of CCCS is that they don't work very hard at freezing interest. I have seen my debt increase even though I have been in a DMP for just over 3 years! Others may have a more positive experience but I can't say that I have. Yes I agree that no one can guarantee freezing of interest but all my small debts had interest frozen but two of my larger ones did not hence why my debts went up. CCCS should have seen this when they did the review and look at what else could be done. I have done my own research and have come to the conclusion that I am better off with an IVA as I don't own a property. Had CCCS recommended this 3 years ago my wife and I would now be 2 years short of paying off all debts. Instead I have seen my larger debts vertually double because interest continued to be added at a much higher rate than the pro-rata payments they were receiving.

I have stopped my DMP with CCCS and am pursuing advice for an IVA. You say you have stacks of equity so IVA may not be a good idea for you and DMP is possibly the best way to go for you.

I don't want to muddy the water, if CCCS is who you want to go with then go with it and keep you fingers crossed that your experience does not mirrow mine. Best way is to keep a close eye on what is happening with your account and don't assume anything - which was our mistake.

The people I am considering going with is Myvesta.I found their website very informative and also learnt that CCCS get paid by the creditors based on what they collect for them. This explains why they did not point out to me that my larger debts did not have interest frozen because they were receiving a nice income every month.

I have come to the conclusion that there is no 100% certainty in anything and one person's saviour is often another person's nightmare. We make our choices, some we regret and others we are happy with the outcome - unfortunately you don't get a preview.

Sorry if I haven't been very helpful with your initial question but good luck and hope everything gets sorted.

katkins2

Hi there,

I too am in a dmp with CCCS and in my experience they were fantastic in the beginning for alleviating all the stress that goes along with your LBM. I haven't found them particularly helpful though when it comes to getting the interest stopped/reduced. I have achieved this myself with numerous letters and complaints to the creditors directly. CCCS do give you massive support when you need it the most but I've found that you do have to do the legwork yourself when it comes to the interest etc. although this may depend a lot on your creditors. I know from reading these forums that some creditors do seem to freeze interest without any trouble after hearing from CCCS, unfortunately as Lloyds is one, you may have a battle on your hands, I know I have arghhhh!

Good Luck.

Poosmate

Hi, sorry I don't have anything to add I don't have a DMP as luckily I am able to meet the minimum payments to my creditors and pay a little extra off the one with the highest interest rate.

I do spend quite a lot of time on this forum though and I feel that the trend seems to be heading the way that creditors are not freezing interest on DMP's through any of the DMP charities as much as they used to.

Are you able to make the minimum payments on your debts? Have you missed any payments? Is there any way you can reduce your spending/outgoings or up your income to be able to get yourself out of debt without going on a DMP?

Maybe you could post your SOA (Statement Of Affairs) and the fab people on here could have a look see if there are savings you could make.

Good luck what ever your decide to do.

Poo

Professor_Pat_Pending

I think that it depends on the creditor, some (MBNA) seem to freeze interest very quickly, others (Lloyds) play hardball. Your best bet is that the debts get taken over my a DCA then in most cases no interest will be charged, but a lot of creditors keep the debt now it would seem.
It's all a bit of a lottery, but the new government initiative on protecting people in debt should help us.

dmb_2

With me Lloyds/TSB cc reduced interest. MBNA, Tesco, Lombard all accepted quickly and froze interest. Don't think Alliance and Leicester are linked to Lloyds or Halifax

mikon

I have debts with :

Barclays
Barclays Visa
CITI
Co-operative Finance
Marks & Spencers
HBC
Next Argos
Northern Rock

I am struggling to meet minimum payments. I have not defaulted but thats luck rather than financial prudence.

What is the point of taking a DMP out only to screw my credit rating and find that the creditors will not freeze the interest. Surely I am worse off and will have accrued more debts bad credit record as it will show defaults and still have the worry and aggravation of from creditors ringing.

Where do i go???

Please reply somebody anybody

pure_dead_dopey

Mikon

I can only tell you of my experience, between OH and I, we have 22 creditors (must be nearly a record), huge debt pile and 20 out of 22 have frozen or reduced interest now, we are in the 3rd month of our DMP. I have had in total around 6 phone calls, none of them scary just incompetant, Halifax and Lloyds have reduced not stopped interest and the 2 who are causing the most trouble are RBS, who are the pits and have not yet taken a decision on our DMP. We are in a much much better position than we were at the end of last year. other options were paying the debt till we were 203 and 205 respectively, it would have been a bit difficult!!!

elsie52

Mikon

I have to say virtually the same as Pure Dead Dopey, We were also in a lot of debt £74k worth.......but after 2 years on a DMP we now owe £34k...Not all our creditors have stopped interest, but some have, and we will get rid of this debt. Yes our credit rating is ruined.....but do I want credit again......I DO NOT.. so we don't worry about that. I can sleep at night, I can pay my debts, outgoings, food bills, clothe ourselves and generally live. Not extravagantly, but well enough....so in my opinion a DMP was just right for us.

Sorry Chasingmytail, we seem to have hijacked your thread.