DMP Mutual Support Thread - Part 7

movingonup_2

Hi All,

I was just hoping for a bit of advise re my DMP. Am about 15 months into my DMP and have had a couple of annual reviews. Barclaycard had previously frozen interest at 6.2% per annum but now wish to increase to 1% per month and lloyds TSB want to go from 0% on an overdraft and credit card to reverting back to 19.9% per annum. Clearly this will have a severe impact on the size of my debt. Any advise on how I can proceed? I seem to always be writing letters to these companies but they just say they don't have to freeze interest!

Similarly, has anyone ever had much luck with Halifax? Throughout my DMP, they've charged 1% per month. I've written countless letters but their response is always that they've reduced from 19.9% per annum to 1% per month and I should be grateful! Tactics for whom to approach or something different to say would be appreciated.

If someone who's had success with these 3 companies could PM me their letter template etc that would be useful.

Thanks in advance

DevonGirl

Hi Movingonup

Just to say that I am in the same situation with Barclaycard. Am over 2 years into DMP, frozen interest at 6.2% pa, and they have now written to me saying it is increasing to 1% a month (presume that means 12% a year? Am not too hot on percentages! ).

On advice of CCCS, I wrote to Barclaycard saying how this interest was not helping my financial situation (only 2/3 of monthly payment goes towards debt), but haven't heard anything yet. Will post if I do.

I know other posters have zero interest with Barclaycard, but I haven't had any joy with them so far...

Not a lot of help I know, but at least you're not on your own with them.
DG

ampafc

movingonup wrote: »

Hi All,

I was just hoping for a bit of advise re my DMP. Am about 15 months into my DMP and have had a couple of annual reviews. Barclaycard had previously frozen interest at 6.2% per annum but now wish to increase to 1% per month and lloyds TSB want to go from 0% on an overdraft and credit card to reverting back to 19.9% per annum. Clearly this will have a severe impact on the size of my debt. Any advise on how I can proceed? I seem to always be writing letters to these companies but they just say they don't have to freeze interest!

Similarly, has anyone ever had much luck with Halifax? Throughout my DMP, they've charged 1% per month. I've written countless letters but their response is always that they've reduced from 19.9% per annum to 1% per month and I should be grateful! Tactics for whom to approach or something different to say would be appreciated.

If someone who's had success with these 3 companies could PM me their letter template etc that would be useful.

Thanks in advance

Aren't they doing you a HUGE favour by reducing the inteerst from 19% to 1%. Personally, I would be quite happy if some of my creditors did that. Somethimes we ask for more than what we are entitled to - just my opinion.

I am trying ym best to reduce my debts, but have't gone through the DMP just yet. May have to in the future, however.

sickasachip13

Hey all,

Our DMP is still ticking along nicely. Going to sell some stuff on ebay this month to pay for our son's bday pressie, so things are tight but do-able. We've been on it since Autumn and things are fine - such a relief to know that we're managing things now, and the debt isn't growing and growing.

Mogsi80, we had a similar situation with the Halifax - our housing benefit payment went into the halifax although we'd changed over to our new account. It cocked things right up because Halifax thought it was a payment and indicated that we had more money than we'd told them, they cancelled their agreement to the DMP as a result. BUT, when I rang them and explained they were great, they told me to go to my local branch to collect the money that had gone in (because is was a state benefit) and reinstated the DMP. I went into my local branch, who were ace and they gave me the overpayment back (although I owed the Halifax about 7.5k at the time).

Worth ringing and asking them.

movingonup_2

ampafc wrote: »

Aren't they doing you a HUGE favour by reducing the inteerst from 19% to 1%. Personally, I would be quite happy if some of my creditors did that. Somethimes we ask for more than what we are entitled to - just my opinion.

I am trying ym best to reduce my debts, but have't gone through the DMP just yet. May have to in the future, however.

Hi thank you for your post.
I said they were wanting to go from 6.2% PER ANNUM to 1% PER MONTH which is around 13% APR so over doubling it.
So I appreciate that this is still a reduction from their standard rates but the increase in interest does make a massive dent into my actual repayments. 6.2% interest is still a healthy profit for them

I also said that I want halifax to reduce further than the 1% PER MONTH they're currently doing. 1% PER ANNUM would be lovely! But when £45 of a £75 payment is interest, that debt is going to take an incredibly long time to repay!

mogsi80

Hi Sickasachip13 (didnt really know how to shorten that one - feels a bit wrong calling you sick?!)

That's really promising news - as the child benefit, although only what £20 a week - really does help out with the shopping so we were a bit aggreived to lose it.

Also we were a little annoyed that they closed the account so quickly without even acknowledging that they even received the letter. Prior to sending the DMP letters we had never missed a payment to them on any of the accounts we have (even as of today we've not missed a payment from them!)

Oh well ho hum - onwards and upwards?

ianmak

Had my DMP review this arvo, after tallying up I managed an increase of £10 a month, more through cutbacks on insurances than anything else! It's still gonna be a struggle, but happy with that I think.

Hope everyone here is well with all of ya on here.

sickasachip13

So, how the hell do you manage a wedding on a DMP?? Looks like I'm going to find out. My and the OH are getting hitched, next year, after many years together.

I'm excited already.

DevonGirl

sickasachip13 wrote: »

So, how the hell do you manage a wedding on a DMP?? Looks like I'm going to find out. My and the OH are getting hitched, next year, after many years together.

I'm excited already.

Congratulations!!! :beer:
You must be feeling very excited!!!:smileyhea

There issue of weddings on a budget has been covered a lot. Maybe do a search on Google, but here's some info from this site:
http://www.moneysavingexpert.com/family/cheaper-weddings

With regards to the DMP bit, I don't know your circumstances but is there any chance that you could get a 2nd job for 12 months to purely pay for the wedding? I know you're supposed to tell you DMP company about ALL earnings but come on, this is a special event!! Alternatively, and also a bit naughty could you overestimate your outgoings when you next have your DMP review? (gasps from the audience....)

Alternatively could you do odd jobs for people, such as walking a relative's dog for 6 months in return for them making your cake, babysitting once a month in return for someone making a video of your wedding, etc??

Whatever you do, don't go buying loads of bridal magazines - they make it sound like you must buy everything on their list (a bit like baby magazines)... when in reality 2 people in love just need each other and those closest to them on their big day.... Have a wonderful day.

ianmak

sickasachip13 wrote: »

So, how the hell do you manage a wedding on a DMP?? Looks like I'm going to find out. My and the OH are getting hitched, next year, after many years together.

I'm excited already.

I know people who have got married in a registry office, and a reception in the pub after. Sure that can be done for a few hundred quid.

Now I've never been married, but get the idea that the cost of a wedding balloons when the bride decides what she would like for their dream wedding (it is a 'one off' day after all), and what the extended family want....