paying off debts

tilly2484

At the moment we are paying token payments on debts. 2 is with a DCA and the other is due to default this month so interest is stopped on them.

Soon we will be upping our payments on them- my question is once you start upping your payments do they put the interest back on?

Tixy

Sometimes they will.

Usually if your payments go back to the full level of the original repayment the creditor would charge interest again, or with some if your payments are more than 90% of what the proper payment was.

If your debts have been sold to debt collectors (not just inhouse collectors acting on behalf of the creditor) then they are only allowed to charge interest if it is specifically noted in the credit agreement that they can. If it isn't then they cannot charge interest.

tilly2484

Thanks Tixy
We won't be paying what we were before as we just can't afford it. I suppose i'll wait and see what happens x

the issue is with my santander i was paying £210 a month when my salary was double what it is now. i've only been paying £1 for 6 months but want to increase it but it won't be over £100. But the interest is £150 a month so while i've only been paying £1 the debt has been going up. This is not with a DCA and is due to default this month