DMP & Mutual Support Thread - Part 9

Sazzie23

debtdawg wrote: »

Barclaycard are charging us 3% interest a year on a nearly £7k credit card debt, we pay them approx £90 a month. They've said the interest charged is linked to the payment amount they receive each month and as ours is between a certain percentage, they will not freeze interest. However it is greatly reduced. I am just worried that once our balance is below a certain level and our payments have increased due to small debtors being settled, that they'll whack up the interest again!

Hi Debtdawg - yes I'm paying slightly more on slightly less, and yes they are charging me more interest.:mad:..I'm fighting it though

Equilibrium I had a situation early on where Barclaycard or was it HBOS said they hadn't received the Stepchange details, I did eventually call whichever CC it was told them again about SC and got SC to send them the details again. The fact they had received 2 payments from SC already didn't seem to be relevant ???

So if you can face them, call and ask them if they have the SC details, it might be worth it, and if they say - tough we don't agree etc, write the don't ring me letter and carry on ignoring them.

Growurown

Equilibrium13 wrote: »

Finally, my salary will be cut at the end of February so I will have to ask StepChange to reduce the payments, which I'm dreading and am so worried it will have a detrimental effect on the arrangements with my creditors.

I have done this on a couple of occasions when I have had a large bill for car repairs, but gone back to the agreed payments the following month. They don't like it but it has been OK. Your case is different though because your salary is being cut. My assumption would be that SC will update your income and expenditure figures and send your new details to creditors with offer of payment. I can't see that many creditors would refuse, after all you can't pay what you haven't got.

Time_to_face_the_music

Equilibrium13 wrote: »

Barclaycard (2 cards) have reduced the interest from 29.9% to 12.9% from December's statement. Does anyone know if it's worth writing to them to request that they suspend interest, or is this what they usually offer customers on a DMP?

It appears this is normal practice for Barclaycard and they charge varying rates of interest depending on the % minimum payment but always charge at least 6.9% if the payment is above 1%

Check out this thread for more details

https://forums.moneysavingexpert.com/discussion/4377219

Equilibrium13 wrote: »

Anyone who set up a basic Barclays bank account through StepChange know if it is safe to put any money into my savings account with Barclays? Or can they still transfer money from there to the Barclays debts even with a payment plan in place?!

I have read that Stepchange have an arrangement with Barclays that avoids offsetting. You could ask Stepchange for something in writing to confirm this. Personally I would not trust it but I don’t trust any creditor or Stepchange so I am a little biased!

Equilibrium13 wrote: »

Finally, my salary will be cut at the end of February so I will have to ask StepChange to reduce the payments, which I'm dreading and am so worried it will have a detrimental effect on the arrangements with my creditors. Has anyone had to do this? I've seen comments about people making a reduced payment for a short period of time, but this will be until (if!) I get a better paid job

Equilibrium13 wrote: »

The other thing is that due to the paycuts, I will get a one off payment/compensation. Am I obliged to let StepChange/creditors know about this and the money being divided between creditors?

Cutting your payments could be a good thing for the Barclaycard interest but that depends on the amount owed to all creditors and the usual minimum payments, due to the way Stepchange distribute your payments. In circumstances like this, I would recommend that you notify the creditors yourself, as well as Stepchange doing it.

Re the one off payment, would it be enough to pay off one of your debts, preferably an interest charging one? Or offer a F&F on a debt? If you tell creditors their payment is likely to drop and you can’t foresee when it will increase again, it will possibly encourage them to accept a lower settlement figure. You can do this yourself and do not need to do it through Stepchange, National Debtline has great information on F&Fs:

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

If it’s not enough for that, I would keep quiet about it and save it as an emergency fund or towards a future final payment.

Not sure on the other questions so will leave someone else to answer those.

Good luck and please let us know how you get on.

TTFTM x

Time_to_face_the_music

debtdawg wrote: »

Barclaycard are charging us 3% interest a year on a nearly £7k credit card debt, we pay them approx £90 a month. They've said the interest charged is linked to the payment amount they receive each month and as ours is between a certain percentage, they will not freeze interest. However it is greatly reduced. I am just worried that once our balance is below a certain level and our payments have increased due to small debtors being settled, that they'll whack up the interest again!

It appears this is normal practice for Barclaycard and they charge varying rates of interest depending on the % minimum payment but always charge at least 6.9% if the payment is above 1%

Check out this thread for more details

https://forums.moneysavingexpert.com/discussion/4377219


I would definitely try and fight it but it does not look like people have had much success

DH95_2

Hi everyone.

I too have been reading posts on here for a good few months and have found your comments really encouraging and have given my husband and I the courage to face our debts and set up a DMP with SC. The first payment to them is due on feb 1st.

So far I have had positive responses from Next and NBMA who have both frozen the interest and agreed to the DMP. However, I seem to be having problems with barclays (overdraft and loan) and Nationwide (loan and credit card). Both are saying they have not received anything from SC and are phoning me and sending letters. I have given them my SC reference but still insist on ringing. SC have sent another letter to them as the first was sent on Dec 23rd. Has anyone else had a similar problem? This is the first month I have missed a payment with both of these companies. Nationwide even accepted a token payment on my c card!

D

Hopelessly_Hopeful

DH95 wrote: »

Hi everyone.

I too have been reading posts on here for a good few months and have found your comments really encouraging and have given my husband and I the courage to face our debts and set up a DMP with SC. The first payment to them is due on feb 1st.

So far I have had positive responses from Next and NBMA who have both frozen the interest and agreed to the DMP. However, I seem to be having problems with barclays (overdraft and loan) and Nationwide (loan and credit card). Both are saying they have not received anything from SC and are phoning me and sending letters. I have given them my SC reference but still insist on ringing. SC have sent another letter to them as the first was sent on Dec 23rd. Has anyone else had a similar problem? This is the first month I have missed a payment with both of these companies. Nationwide even accepted a token payment on my c card!

D

Good Morning and welcome


Usual tactics


My advice is don't speak to them. Use template to write and tell them, tell them only contact in writing and ask them to freeze interest. Send recorded delivery. If they call again take their name and ring FOS they will have them for harassment.


HHx

Monkeyballs

Equilibrium13 wrote: »

All of my creditors apart from the Moneyshop have accepted the payment plan.

The Moneyshop keeps calling me numerous times a day from different numbers and send text messages stating that my account is in arrears and that they need to speak to me about "my paperwork." They have not acknowledged correspondence or that they are receiving the payment offer monthly. I have also received a default notice from them demanding the full original outstanding payment even though by the date of the letter they should have received 2 payments from StepChange. I would rather no speak to them on the phone to be honest. Looks like the template posted above by Time to face the music is a good one for this! Thank you Anyone have experience of dealing with them or other payday loan companies?

Hi,

I had a PDL with the Money Shop and they agreed to my payments without any problem? I owed them £520 and am paying them back at £14.67 pcm - I recently contacted them (cheekily) to ask if them if they would accept £80 as F&F which they refused and countered with £300 so they're obviously willing to cooperate...

I contacted them directly to cancel CPA and tell them about the DMP and give them the ref. did you do this? While SC have been great I think the best thing I did at the start was contact my creditors myself as I seem to be having fewer problems than some folk on this site...

My advice is to just call them, I get the impression that they have several dept's so it could just be a case of the correct dept (I.e. the dept who is generating the request to chase to the team who do the chasing) don't have the relevant info? It's worth it for the sake of a call.

Good luck!

MB

Mojo13

Hi,

Quick question this morning I had letters from Mercers about my Barclaycards. I have previously received a letter from Barclaycard themselves telling me that had accepted SC payment offer.

Do I just ignore them, I think I'll write anyway. But now a bit worried that the agreement has not been accepted or we have to negotiate with them again.

Anyway else had the same thing.

Thanks

Mo

stickman

Hi
On DMP with Stepchange who are brilliant by the way.
However creditors willing for full and final which sounds great.
Problem is I can't get loan to cover it.
Currently paying 500 plus on DMP with end date of approx 4yrs time. 12k loan =350/380 over 3yrs.
So saving 200 per month and debt free in half the time.
Realise that loan would default DMP but surely better to clear in half the time also creditors will be happy that all debt has been paid off.

Help and advice please.
Thanks

Monkeyballs

stickman wrote: »

Hi
On DMP with Stepchange who are brilliant by the way.
However creditors willing for full and final which sounds great.
Problem is I can't get loan to cover it.
Currently paying 500 plus on DMP with end date of approx 4yrs time. 12k loan =350/380 over 3yrs.
So saving 200 per month and debt free in half the time.
Realise that loan would default DMP but surely better to clear in half the time also creditors will be happy that all debt has been paid off.

Help and advice please.
Thanks

Hi,

You asked this last August... https://forums.moneysavingexpert.com/discussion/4737551

Not sure if you are serious or not? But, as mentioned on your last thread you won't find anyone to give you a loan and especially not for so much!

If you are genuinely looking to reduce the time then save some money and try going for F&F one at a time or, look into ways to increase your income which you can save to pay F&F's faster or increase your DMP repayment.

Getting a £12k loan simply isn't going to happen...

MB