Payment less than interest being applied

venus2129_2

Hi, I am on a DMP with CCCS which has changed my life for the better. However, one of my creditors is still applying full interest despite having accepted my reduced payment. As a result my balance is increasing every month. Can anyone offer me advice? The CCCS said there is nothing they can do.

Ruth

Tixy

There isn't really much you can do. Often you just have to wait until the debt is sold on to a third party in the hope it will be easier to get them to freeze interest.

A few people have had success by writing to the creditor themselves asking them to reconsider freezing interest - there is a template letter on national debtline if you want to do this. Might be worth a shot.

saltnvinegar

venus2129 wrote: »

Hi, I am on a DMP with CCCS which has changed my life for the better. However, one of my creditors is still applying full interest despite having accepted my reduced payment. As a result my balance is increasing every month. Can anyone offer me advice? The CCCS said there is nothing they can do.

Ruth

Hi Ruth

Who is the creditor?

I am on a self administered DMP and managed to get most of my creditors to agree to an interest/charges freeze.

A couple didn't however and in the end I had to wait to get a default letter before interest and charges stopped. You are usually defaulted when your account gets to the equivalent of 6 months in arrears so if you are paying them something it may take a little longer.

Each creditor have their own criteria as to how they approach things. For example I found Shop Direct completely unflexible if I couldn't meet their minimum repayment criteria.

It wouldn't hurt writing the creditor a letter, explaining that my continuing to add interest and charges is not helping your situation and will result in your taking longer to pay off the debt, a position that benefits neither party.

Good luck

SnV