DMP & Mutual Support Thread - Part 10

alamaya

I should add im having a DMP wobble.
1 month in to our DMP and hubby has had a threaten to default notice sent. I know people say this is a good thing but I feel crap. I just want to pay what I owe, I know slower but I will pay every penny, but with this and my 26k and 6k loans still having interest added I cant see any way out of this debt

Ellieseleven

KID77 wrote: »

That's great your defaults will be off soon, have you complained to BC yet? I've read all sorts on the forums about them. Did they freeze your interest? I am hoping they will for us as my new monthly payment will be less than 1% of the balance and from things i have read if its under 1% then they will...... I was going to give it 3 months and if no notice of default then start requesting one. Its obviously still very early days for us but as I know its not going to be paid off in next 6 years, I am uber keen to get defaults asap.

K
xx

No, I haven't complained to BC as I don't want to rock the boat. They have frozen interest and I am paying over the 1% threshold and it's our biggest debt so for now I just plod on until something changes:o

Puzzcat

alamaya wrote: »

I should add im having a DMP wobble.
1 month in to our DMP and hubby has had a threaten to default notice sent. I know people say this is a good thing but I feel crap. I just want to pay what I owe, I know slower but I will pay every penny, but with this and my 26k and 6k loans still having interest added I cant see any way out of this debt

Hi,
Who are the loans with? I thought interest was front loaded for most?
Puzz.x

Puzzcat

KID77 wrote: »

That's great your defaults will be off soon, have you complained to BC yet? I've read all sorts on the forums about them. Did they freeze your interest? I am hoping they will for us as my new monthly payment will be less than 1% of the balance and from things i have read if its under 1% then they will...... I was going to give it 3 months and if no notice of default then start requesting one. Its obviously still very early days for us but as I know its not going to be paid off in next 6 years, I am uber keen to get defaults asap.

K
xx

Ellieseleven wrote: »

No, I haven't complained to BC as I don't want to rock the boat. They have frozen interest and I am paying over the 1% threshold and it's our biggest debt so for now I just plod on until something changes:o

I was above 1% for the last 6 months or so with BC and paying no interest but now have been put on a formal repayment plan with 3% interest, many threats of default with the notices but no default. I rang and asked them but got the usual ap markers are better, blah blah.. They won't default if you are paying a reasonable amount, you can ask but 'the computer says No'....
Will be interested to see how bb gets on with his low token payments now he is self managed.
But remember a dmp is to get rid of your debt that is the aim, unfortunately a wrecked credit file is the price we pay for being able to do this with hopefully minimal interest charges. Being debtfree is a hundred times more important to me than a clean credit file, and even if I have to pay a higher mortgage rate because of it, that would still be less than the £1400 a month I was paying to service the debts each month. I did fix my mortgage prior to starting so 2018 will be the test for me.
Puzz.x

alamaya

both TSB, one in my name and one in hubbys. Wasn't preloaded as I when we received them, the amount we received was the balance and every month interest went on and our payment cleared the interest and knocked the balance down.


TSB loans are the ones you can pay overpayments too without penalty


my 16k one I pay 225 towards and the interest is 215. 16k paid off in £10 reductions is ridiculous

Puzzcat

alamaya wrote: »

both TSB, one in my name and one in hubbys. Wasn't preloaded as I when we received them, the amount we received was the balance and every month interest went on and our payment cleared the interest and knocked the balance down.


TSB loans are the ones you can pay overpayments too without penalty


my 16k one I pay 225 towards and the interest is 215. 16k paid off in £10 reductions is ridiculous

Have you sent the please freeze interest letter as a complaint? If not do so and then you can take it to the FOS. (Ombudsmen) Although I better add you are very early into your dmp and it does take awhile to settle down.
Puzz.x

alamaya

whats the freeze interest letter lol I ask sounding like a total newb

Puzzcat

alamaya wrote: »

whats the freeze interest letter lol I ask sounding like a total newb

There will be a few variations on this thread but unfortunately it does involve searching back, hence the advice to read from the beginning. You may find someone pops up shortly with a template, but I can't recommend enough reading through. I may have one I sent on my pc, if so I will paste it tomorrow if still needed. Have the loan company responded to the dmp letter from sc?

KID77

Ellieseleven wrote: »

No, I haven't complained to BC as I don't want to rock the boat. They have frozen interest and I am paying over the 1% threshold and it's our biggest debt so for now I just plod on until something changes:o

Perhaps once you are near the end of paying it you can challenge it as I someone mentioned recently they got a reduced settlement after 6 years and default back dated so that will be worth a try :-)

K
xx

KID77

Puzzcat wrote: »

I was above 1% for the last 6 months or so with BC and paying no interest but now have been put on a formal repayment plan with 3% interest, many threats of default with the notices but no default. I rang and asked them but got the usual ap markers are better, blah blah.. They won't default if you are paying a reasonable amount, you can ask but 'the computer says No'....
Will be interested to see how bb gets on with his low token payments now he is self managed.
But remember a dmp is to get rid of your debt that is the aim, unfortunately a wrecked credit file is the price we pay for being able to do this with hopefully minimal interest charges. Being debtfree is a hundred times more important to me than a clean credit file, and even if I have to pay a higher mortgage rate because of it, that would still be less than the £1400 a month I was paying to service the debts each month. I did fix my mortgage prior to starting so 2018 will be the test for me.
Puzz.x

I agree Puzzcat, the whole point is to get rid of debt but I will still be pleading for the default from BC if my other 3 creditors have defaulted. May not get anywhere but I will certainly try :-)

K
xx