DMP - creditors starting to charge interest

Stewart_78

I have a DMP and all my creditors have not charged interest. I think this is because it's over 14 years and they figure that they will try to get back what they can.

However, the missus also did a DMP for less money and she was more aggressive than me with what she could afford, making it over 5 years. While this means that she will be debt free quicker, a couple of the creditors have started charging 3% interest which pushes the repayment period out by a year so far. Why is this?

Is it becuase they figure she can afford a bit more so they will squeeze what they can? Is it because of the short length of the DMP? I'm a bit annoyed as I told here when she took it on to be very cautious with what she can afford and make it over a long period. I feel in this way, the debt is more likely to be sold on and then settled for less far quicker. If you know what I mean?

I'm a bit concerned that they are just going to keep adding interest to keep her in debt when we were counting on here being debt free in 5 years time.

Should we ask them to stop the interest? One of them is Barclaycard. I gather they are not the most giving company on the planet?

antonic

HBOS did the same with me !

Froze the interest when DMP started, then unfroze it after 2 years for approx a year, and then refroze it & its still frozen.

There`s not much you can do about it.

Stewart_78 wrote: »

I have a DMP and all my creditors have not charged interest. I think this is because it's over 14 years and they figure that they will try to get back what they can.

However, the missus also did a DMP for less money and she was more aggressive than me with what she could afford, making it over 5 years. While this means that she will be debt free quicker, a couple of the creditors have started charging 3% interest which pushes the repayment period out by a year so far. Why is this?

Is it becuase they figure she can afford a bit more so they will squeeze what they can? Is it because of the short length of the DMP? I'm a bit annoyed as I told here when she took it on to be very cautious with what she can afford and make it over a long period. I feel in this way, the debt is more likely to be sold on and then settled for less far quicker. If you know what I mean?

I'm a bit concerned that they are just going to keep adding interest to keep her in debt when we were counting on here being debt free in 5 years time.

Should we ask them to stop the interest? One of them is Barclaycard. I gather they are not the most giving company on the planet?

sickasachip13

It's worth writing and asking but, I hate to be the black cloud, Barclaycard are one of only two of our 19 creditors who did this to us and they've refused to let it go. Strangely though, we have three other debts with Barclaycard and they all went straight to 0% and haven't budged!

There is little rhyme and reason to it all. There is a template letter on National Debtline that you can use for the purpose. It's worth a second class stamp to try!

Stewart_78

Thanks, we'll give it a go. Maybe I'll catch them just after they have watched 'When bankers were good'.