Feeling so upset and deflated :(

jubilee14

HI Mon10

i have a barclays card and have seen some posts on their strategy usually they have a scale of how much you pay towards the debt cant rememeber the details but if its below 1% of total debt then they apply 0% then goes up to 3% then 7% and usually tops out at 12/13%

But if you can locate the letter which TTFTM posted been reposted a few times on here and state it as formal complaint might get somewhere.

I am still getting interest applied to Hfx cc but it was reduced to 12% so not perfect but shows willing.

As responsible lenders they have a duty to assist you in reducing your debts so get those letters out with the formal complaint status and hopefully you'll see some of it coming down a bit quicker.

My loan went to DCA after alot of hassle with HBOS but that has made a difference as i too at one point didnt see me getting anywhere.

Good Luck keep at em.

Puzzcat

rizla_king wrote: »

Get on the DMP thread. https://forums.moneysavingexpert.com/discussion/4437925

They have some letters somewhere on there for complaining to lenders and the FOS to get interest stopped.

.. The one I have earmarked is a TTFTM letter, on the current dmp support thread post 2285. Hope this helps...

Stewart_78

The more you pay them, the more interest they will charge. You are better off paying the minimum you can get away with and put the rest in a pot to build a lump sum. They don't play fair, why should you?

mon1o

Many thanks for all your help.

Puzzcat - I have found the letter you refer to and I am going to read through the thread and post on it later on today.

[Deleted User]

mon1o wrote: »

BedsitBob - I didn't consider the snowball effect (don't know much about it to be honest).

It's quite easy to understand.

Suppose you have 4 debts, and you are paying £200pm to service them.

Assuming you are paying equally to each of them, you are paying £50pm to each debt.

When the smallest debt is paid off, you share out the "spare" £50, among the remaining 3 debts, meaning they are each now receiving £66-66pm, instead of the original £50, so you are paying them off faster.

When the next one is cleared, you will be paying £100pm each, to the 2 remaining.

Eventually, you will be paying £200pm, to the final debt.

In other words, much like a snowball, rolling down a hill, your debt repayments gather speed until, as you approach the end, you are paying them off at a great speed.

mon1o

Thankyou that explains it really well - makes sense.

Ive very kindly been directed to letters I need to send, got a review planned with stepchange for friday, have set myself up a diary, been on this forum pretty much all day reading threads and joining challenges. I do now feel a bit better about things.

I just need to accept that I am in this for the long haul and take it a month at a time.

Thankyou so much for all your help, advice and encouragement. Youve really lifted my spirits and helped me refocus.