DMP & Mutual Support Thread - Part 9

Pickle29

Monkeyballs wrote: »

Hi Dawg,

Thanks for the update. Sorry to hear that - not sure if it's worth challenging with FOS as some posts re. previous failed attempts have suggested? Hopefully someone 'more in the know' will be able to make a suggestions...

In the meantime, I still haven't heard but that doesn't fill me with a lot of hope as that sounds about the same as what I am currently paying...

I say that but I'm a bit dense when it comes to interest rates and APR's, my monthly interest is 0.561%

If anyone smarter than me has any idea what this works out as or can help me figure the APR out then it would be appreciated?

My Barclaycard debt is currently £1997 and through my DMP I'm paying £33.86 per month of which they are taking £11.53 in interest so each monthly balance reduction is just £22.33...

The really frustrating thing is that Vanquis with whom I have a larger balance (close to £3000) has completely frozen the interest altogether and it's Vanquis who are constantly getting a bad rap!!!

As soon as I hear back from BC I'll post their response

Cheers,

MB

Hi
Has anyone got a mathematical brain to explain this please?

I have a similar query from Barclaycard but I haven't been in touch with them yet about freezing interest. My statement says interest applied 0.251% which I thought was good! but obviously it's not! because I'm paying £33 interest per month on a DMP payment of £172 which seems more like 19%

Any help /next steps advice please?

Hopelessly_Hopeful

Pickle29 wrote: »

Hi
Has anyone got a mathematical brain to explain this please?

I have a similar query from Barclaycard but I haven't been in touch with them yet about freezing interest. My statement says interest applied 0.251% which I thought was good! but obviously it's not! because I'm paying £33 interest per month on a DMP payment of £172 which seems more like 19%

Any help /next steps advice please?

Hi


Its not to do with the DMP payment its how much you owe. Whats the balance?


HHx

debtdawg

Pickle it sounds like you're paying a similar amount to me - My debt repayment is £88ish and interest will be just over £10ish according to my most recent statement. My outstanding debt to them is £6920 odd.

I won't be challenging it, 3% seems reasonable (until they hike it up, yikes HH!). Lloyds are charging me over £47 a month on £25/2600 and now my payments don't even cover the interest they are charging, they are the ones I will be escalating to the FOS. I'm guessing they're just keeping my total nice and high so they can get more for it from a DCA when they sell it on!

Pickle29

Hi
Thanks for helping
The amount outstanding is £12379 and we are paying £172 per month DMP And the charges are £33.85 per month
I though £33 is about a fifth of £172 eg circa 20%

Or is it a case of 0.251% x 12 = 3%
3% of balance is £371/12 = £30.94 per month

Therefor is what they are charging about right?
Is it worth going back to them?
Thanks

NoMore

Its interest on your amount outstanding NOT your monthly payment.

I.e. 12379 x 0.251% = 31 ish

Hopelessly_Hopeful

Pickle29 wrote: »

Hi
Thanks for helping
The amount outstanding is £12379 and we are paying £172 per month DMP And the charges are £33.85 per month
I though £33 is about a fifth of £172 eg circa 20%

Or is it a case of 0.251% x 12 = 3%
3% of balance is £371/12 = £30.94 per month

Therefor is what they are charging about right?
Is it worth going back to them?
Thanks

Hi


Ok £33 interest will be last months. Next month the payment will be like this


Starting balance £12379
Plus .251% interest = £31.07
£12379 plus interest £31.07 + £12 410
£12410 minus DMP £172 - £12 240


Month after
Starting balance £12 240
Plus .251% interest = £ 30.72
£12 240 plus interest £30.72 = £12 270
£12 270 minus DMP £172 - £ 12 098


And so on


That is how we work our spread sheets out so with information you have today you can work out how much you will owe to each creditor for every month from now until end of your DMP. Of course you have to rework it out when there are any changes in rates and payments but that becomes fun and keeps you in control of the what ifs etc.


I would continue to challenge the interest at this stage. You have more chance getting it stopped the earlier in your journey, it will get harder later when they say you are not in hardship even though you don't have other lines of credit open to you.




Does that make it clearer?


HHx

Pickle29

Thank you, that's great, I get it now!
At least 3% is better than it was at 16.9% but Marks and spencer seem to have frozen all interest so I don't get why some treat it different to others!

Hey ho, I will still send my letter to Barclaycard re interest and see what they say - I've got nothing to lose!

Will keep you posted!

Thanks again

Monkeyballs

Hi HH,

Just wanted to say thanks for the info re. working out interest and APR's and the like

All,

Doesn't it seem odd that Barclaycard has varying interest rates for folk on DMP's?

I appreciate that everyones balances are different but it seems like a pretty poor show that they charge anything at all from people who are obviously struggling financially and trying to get their house in order especially when they are able to offer 0% offers to new customers and for transfers?

I wonder if anyone has ever challenged them on their policy of continuing to charge especially when so much is in the news about debts, poverty, PDL's, etc?

As mentioned in my earlier post, if Vanquis who offer credit to people with low credit ratings and are generally seen to target the lower end of the income scale can freeze interest completely then why not these guys?

I have 3 x Credit cards;

1. Vanquis = £2974 balance, interest = FROZEN
2. Capital One = £270 balance, interest = FROZEN
3. Barclaycard = £1997 balance, interest = 0.561% Monthly / 6.73% APR

MB

Growurown

Hopelessly_Hopeful wrote: »

Little update from me. I have today had a mortgage payment holiday approved for next month. This has just enabled me to pay off MBNA and chunk of Tesco. It's also taken my oustanding debt to £5899 meaning I have paid off 90.04% of the DMP.


Hope everyone not feeling too blue being back at work.


HHx

I'm not back in work until Monday. I took some extra holiday, but I will definitely be fed up Monday morning say around 9ish:rotfl:

Well done on getting down to the last 9.96% you must be getting quite excited now:j

Hopelessly_Hopeful wrote: »

Worked for me with Hellifax and FOS so will keep fingers crossed.


HHx

Thanks for this. It's good to know others have been successful in getting interest stopped or reduced. I am keeping my fingers crossed too!

Growurown

Monkeyballs wrote: »

Doesn't it seem odd that Barclaycard has varying interest rates for folk on DMP's?

It does seem odd but it's not unusual. We had two bank accounts with Halifax one with an overdraft of £2,400 and the other with £800 both treated differently. Our Halifax credit cards were also treated differently. It was to do with the amount owed apparently and how much can be paid back.