Payplan at moment, should I get loan instead?

keelyf

Afternoon
I posted this earlier on another part of site(I registered today!) I was advised to post here instead.
Can anyone give me some advice? I have debts which Payplan are dealing with. I have paid £10,795 off, with £19,636 to go! I started paying this in April 2005. I am now starting to get interest from some of my creditors e.g. Lloydstsb, Barclaycard and Bank of Scotland. Payplan don't seem to want to deal with this and say that interest is sorted out when you are getting close to paying off your debts. I am wondering now if it would be better to apply for a loan and deal with my debts that way. At least then I would know my interest from the start and would not get any extra charges and interest. If anyone could give me any advice I would appreciate it.
Thanks

Storm

My gut reaction is a no, as PayPlan know what they're doing, but I have to admit to being under the impression that normally interest was stopped at the beginning of a DMP, rather than the end!

It may be that they're looking at doing full & final settlements with the creditors closer to the time, but I honestly wouldn't know. Presumably though, if the majority of your creditors aren't charging interest then a loan would work out more expensive in the future, especially if you've got any defaults/CCJs that would stop you getting the lowest deals around.

Hopefully someone who's been through the PayPlan DMP route will be along soon with more answers!

System

Do you mean they are starting to charge you interest again. That's worrying. Did they let you know or did they simply start charging it again. It is something at the back of my mind and I would hope they wouldn't start interest again. You haven't missed any payments have you? Lenny

keelyf

Three of my creditors are charging interest, Lloydstsb nearly as much as I am paying, Bank of Scotland the same, they reckon I have got my balance below my credit limit so it's just back to normal!! I have 'phoned both of them and they are awful to deal with! I have not missed a payment, it is kind of getting to me. I just want it cleared. I do have my review with Payplan next week so maybe they'll be able to help me out.

System

keelyf wrote: »

Three of my creditors are charging interest, Lloydstsb nearly as much as I am paying, Bank of Scotland the same, they reckon I have got my balance below my credit limit so it's just back to normal!! I have 'phoned both of them and they are awful to deal with! I have not missed a payment, it is kind of getting to me. I just want it cleared. I do have my review with Payplan next week so maybe they'll be able to help me out.

Very stange, I have noticed that my credit limits have been reviewed and are only slightly above what I owe. One to watch and let us know what Payplan say.

keelyf

Thanks
I will post the outcome from payplan next Tuesday. I shall hopefully feel happier after speaking to them.
Cheers to all who gave me advice
xx