will they add interest???

Learning2Budget

After reading someone's thread. It got me thinking. At the minute all our creditors have frozen interest on our dmp. But as our amounts come down are they likely to restart interest or are they gonna think that 8 years down the line.....we'll just let them pay it off and be done with it????

Anyone got any experience please??
L2B.xx

immoral_angeluk

Creditors have the right to charge interest. That includes the right to restart interest but generally under a DMP they're happy to let it run. If you're worried speak to your DMP provider.

Learning2Budget

Thanks immoral.

DS4215

For loans you might find that the interest has already been added to the amount outstanding.

Miss_Poohs

Unless you live in Scotland and have a DPP under DAS -where they arent allowed to add any further interest or charges once the DAS is up and running - no matter how long.

sam89

Hi there, we're now 4&1/2 years through a 6 year DMP and making more than the minimum payments to all our creditors. Opus and First Direct are now adding interest at 6.5%, Marks & Spencer at 24.9%!!! All the others are 0% at the moment, I'm concerned we'll stir them up when we review in August but (as we are easily covering the payments) we can no longer claim financial hardship so will just have to go with it.

Learning2Budget

That's my concern. We are making more than our minimum payments to barclays. I just want to see an end to this mess. But if they all start adding interest we will never get away from it.
Thanks for the replies. L2B.x

sam89

It's irritating L2B, but try not to be too concerned.

Our debt is now £29,500 (It was £104,000 :eek: when we started the DMP) and this month we've paid £130 interest to 4 accounts. 7 accounts remain 0%. So we're still clearing a large chunk of capital from the balance each month.

My plan if too many of them put us back on to normal accounts is to come off the DMP and snowball, but at the moment we are definitely benefitting from the DMP. It's better to look at the total debt rather than individual accounts and see that you are still making progress :T.

lindann_2

In 2010-11 we are with pay-plan, we went through a end of dmp review, asking all creditors for a ending figure we did not realise that our creditors had added any interests, Barclay card did six month freeze. We were naive, to think that our RBS was also frozen. This made us continue our Dmp. we just had 3 month annual review, we could up the payments slightly. This means that in August 2012, what is owing on the Dmp will been paid off. I know we still owe about £100.00 difference to Barclay. We did ask to freeze payments again, but they are at 12.9% but its yield below £5.00. From hoping the payments will end, 2010-2011 it carried on another year because the interest differences.

We been in a Dmp since 2002/3, it has been a real struggle, at the beginning,

fingers cross the creditors will accept that we do not owe anything more. when they get approached by the team at Pay plan.

The answer to the question is Yes! they will add interests, at any time.... good luck everyone