arrears

babybaby1

Hi

I am in Month 2 to the DMP via stepchange, and the money is coming off my account no bother, but about 3 of the companies have arrears from the month before I got step change sorted, I know that the companies don't have to stop interest etc, but if I found the money to try and pay off would that effect the repayment plan with Stepchange? I can't afford to jepordise that but also concern that because their minimum amount is not being paid, even if I can clear those current arrears, then they will then try and get the difference off me, if you see what I mean.

Thanks

Babybaby1

Deep_In_Debt

Hi

It's not advisable to pay creditors outside of your dmp as this will likely have an effect on your dmp and if the other creditors find out it could open a can of worms.

Keep paying them through Stepchange and eventually these creditors will stop hassling - you just need to ride the storm for a while. Let Stepchange know they are hassling and maybe they could write to the creditors again or send you a letter so that you could write to them.

National Debtline website has a good template letter you could use to write to them to ask them to freeze interest https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Freeze-interest-%28sole-name%29.aspx

Good luck

Tixy

Definitely not a good idea to pay extra on top of the DMP.

The creditor won't distinguish between arrears from before the DMP or during. The DMP payment is the amount you can afford to pay and paying extra undermines that principal, especially at the start of the DNP.

babybaby1

:Dthanks, I did want to check before I did anything stupid

Sazzie23

babybaby1 wrote: »

Hi

I am in Month 2 to the DMP via stepchange, and the money is coming off my account no bother, but about 3 of the companies have arrears from the month before I got step change sorted, I know that the companies don't have to stop interest etc, but if I found the money to try and pay off would that effect the repayment plan with Stepchange? I can't afford to jepordise that but also concern that because their minimum amount is not being paid, even if I can clear those current arrears, then they will then try and get the difference off me, if you see what I mean.

Thanks

Babybaby1

Hi Baby, well done for getting on with sorting out debt.
I've found different companies deal with this different ways. One of my CC accumulates what I am short on the minimum payment and just shows that on the statement, it doesn't create any bother and they have frozen interest. It went up for ages but as the debt is coming down, so is the 'overdue amount'.

Another shows I am paying the minimum and doesn't show any arrears, however they still charge me interest :mad:

Have you heard of the DMP mutual support thread? lots of SC and other DMPers on there if you wanted to chat/advice/rant. Easy to find from the DFW thread front pages.

Hope it helps

sourcrates

Forget what has gone on before, you have drawn a line in the sand now, and the only payments you should be making are via your DMP.
Previous arrears are now just a part of your debt as a whole, the accounts, and how you paid them previously, no longer exist.


You should look at each creditor debt as a whole amount owed to each one, that your DMP will eventually repay, no matter how the creditor try's to dress it up.