DMP how long before interest might stop?

backwherewestarted

HI
Ive been on a DMP with SC since Jan (16) and making payments etc all ok the phone calls have stopped and Im still getting statements through post for things like Argos/ littlewoods / CC etc but they are all still adding interest so the debts are going up not down! as the SC payment doesn't cover the the minimum payments. Will they ever stop the interest otherwise it seems no point keep doing the DMP as the debts are never going to go down *feeling bit deflated* should I be writing to them all asking or will it happen naturally and Im just being impatient?
After all the phones stopped ringing I was quite relieved and don't wanna rock the boat unless I have to

thanks

Time_to_face_the_music

backwherewestarted wrote: »

HI
Ive been on a DMP with SC since Jan (16) and making payments etc all ok the phone calls have stopped and Im still getting statements through post for things like Argos/ littlewoods / CC etc but they are all still adding interest so the debts are going up not down! as the SC payment doesn't cover the the minimum payments. Will they ever stop the interest otherwise it seems no point keep doing the DMP as the debts are never going to go down *feeling bit deflated* should I be writing to them all asking or will it happen naturally and Im just being impatient?
After all the phones stopped ringing I was quite relieved and don't wanna rock the boat unless I have to

thanks

Hi backwherewestarted :hello:

You need to start being pro-active here and writing letters of complaint to your creditors, then following this up with contacting the FOS if you don't get the result you want.

You will find masses of useful information, help, advice and fantastic support on the DMP & Mutual Support Thread:

https://forums.moneysavingexpert.com/discussion/5285089

If you need a template letter of complaint, please ask and someone will be very happy to assist you with the wording,

TTFTM x

Karonher

This may be of interest.

http://debtcamel.co.uk/creditor-wont-freeze-interest/

It seems that there are situations when they will be told to stop interest, but others when they will not have to.

backwherewestarted

Thanks Ill have a read tomorrow as I have to go to work now.
I just didn't want to go on blindly paying the DMP and just making situation worse when perhaps there was something I could do but I wasn't sure if it was just a case of early days and I need to wait.

thanks x

muppetscotland

Hi there - perhaps your payments are too much? I know this sounds bonkers but if you pay around 1% of the balance that seems to be the magic number for them not to stop interest. We are paying tiny amounts and all our creditors have stopped interest and charges almost immediately. I would revisit your budget with SC and find some other things you need (laundry pets cigarettes newspaper's whatever you hadn't included first time around). They are not going to argue with you. It's your budget and you are allowed to make mistakes.

In addition to this make sure you have expressly asked your creditors to stop interest and charges. There are plenty templates here and elsewhere you can use.

I wish you well. Once you see interest stopped it's amazing how good it feels to know that eery penny you are paying is reducing the actual debt. It's just a pity that we have to start a DMP and pay them peanuts before they start being reasonable. All the best.

dancingfairy

2 months is quite early days. I'd be surprised if all the companies had registered your missed payments, git the letters from stepchange, sent it to the right department updated the computer etc etc.
Having said that it's always good to be proactive and get reminding them to stop interest and charges. It's easy to let these things slide.
Df

sourcrates

Its very early days, its doubtful your account will even be with collections yet, but, as others have said, you cannot sit around and just expect these things to happen.


If you want them to stop interest, you must write and ask them to stop interest, they cant, after all, read your mind, nor can you expect stepchange to do everything for you, so get writing those letters.

blisteringblue

A few months token payments will always get their attention. And by token I mean £1. Unfortunately as you have started with Stepchange they will not allow this, so if you want to do it then you will have to self manage your own DMP.

Deep_In_Debt

As others have stated, it is early days. If I recall one of my creditors took nearly 6 months before they froze interest so my debts did increase for a while. I found after the creditors had issued a default letter and passed my debt to collections or sold to DCA then the interest would freeze.

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

dancingfairy

Sadly it's a definite piece of string question. Some companies will stop interest and charges immediately and be super helpful, the majority will probably huff and puff, lose the letters/ not action the letters, send it to collections and huff and puff some more before accepting, while others will never formally accept but will eventually just give up chasing.
It really just depends I'm afraid whilst stepchange and national debtline are great I don't think they have the resources to keep chasing all your creditors to stop interest and charges so the more proactive you can be the better ( and let's face it, it's your debt and in your best interests to push for interest and charges to be stopped).
Good luck
Df

backwherewestarted

Thanks everyone for all the info.
wasn't sure quite what situation was and what would happen and when so didn't wanna start writing off to everyone if it was just a case of sit and wait and eventually nature will take its course (so to speak) Right well few things to read up on and then some time to find and make a start. gotta update my SC budget anyway as I owe wee bit more on my gas bill than I thought I did so they are reassessing the direct debit at the mo!! plus tax credit say I have an overpayment *caused by them and their info* so I have to sort that as well!