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DMP how long before interest might stop?
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Mine didn't all completely stop adding interest and charges for about 5 months but by then I was past caring. Just make sure that you get updated balances regularly so you know full well how much you owe. Don't get stung with a years worth of extra payments when you think you've finished like I did!0
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Always remember that interest freeze on a DMP is a concession, not an obligation. A DMP, whilst the most numerous of all the debt solutions, is non statutory and therefore little more than a gentlemen's agreement.
That said, the vast majority of creditors will freeze, and relatively quickly as well, interest in order to help. However, some creditors are notorious for not engaging with debt advice agencies, even charities. Catalogue companies generally are the worst, in my experience, Argos isn't much better and Lloyds do like to keep adding interest, historically at least, although they do seem to be getting better, very slowly mind.
I would be tempted to give it a little longer, maybe till the end of next month, but after that you need to be looking again at what to do next.0 -
Hi Im back again Have waited a little to see what happens and interest is still adding Ive just checked and they all seem to have lowered monthly payment so hence I seem to be paying enough for them to keep adding interest. Stepchange have emailed and asked for a review phone call *so have to gather my nerve for that tomorrow* thought they did that in 12months not 5?
I started one as I know my gas has gone up a lot and I now owe them £400 so started review but then realised I was waiting to find out how much tax credit reckon I owe them back *even though I argue I don't as they told me I would get till the date they paid till*
So even though I thought with dmp I was going forward all I seem to be doing is going backward. Dog now needs to see vet and car needs MOT next month don't think this nightmare will ever be overHave gotta get some control back and start seeing something going down!
sometimes wish I had life insurance I could be of some use!!0 -
Dont fret too much about speaking with SC - I have found them super helpful - when I called them about my debts 2 years ago I was physically sick - I have had to do a couple fo reviews with them and had to change my budget too due to underestimating my expenses and some one off expenses with my car.
with regards to interest - all the companies stopped my interest within around 4 months of being on the DMP - however 2 of them have now re-started the interest - this is a tad annoying however I have nearly completed the dmp - I started owing £12k and I am now down to under £4k with only 4 outstanding creditors - 2 of who will be paid off in the next 4 months and the final 2 are the ones who have re-started the interest but my payments are well over the interest amount so the total continues to go down which is good.Anything is possible if you believe
Jan 2015 - £13,000 Feb 2018 £0 DEBT FREE WOOHOO now to start saving0 -
Also please dont feel there is no way out - there is - you are doing what you can with regards to the debt and thats the main thing - perhaps speak to your gp and explain your situation to see if they can provide help re support worker as well or even putting u in touch with local councilling groups and places where you can discuss this without being judged or anything.
When I started my dmp I felt like the worlds biggest loser - I couldnt believe I got myself into such a mess financially - I have a good job and before this has never gotten into any sort of debt or trouble. I totally accept its my fault but getting help and setting up the DMP was the best thing I did - I felt like I was drowning and that I would never be free of the debt and that everyone would know and judge me - turns out noone knew and apart from the fact I have a frankly crap credit score which wont improve for 6 years it has deffo changed things for the better - I am confident once I have paid my debts off i wont get in the same situation again - using the dp has given me a much better insight into budgeting and I have learned the hard way how to manage on low income.
If you speak to SC and get the review done tell them that you are due an MOT an that you are expecting to have work done on the car etc and also about vet bills - they can take this into account and look at setting up a lower payment to start with and then increasing it once the bills are met.
contact your local pdsa hospital or clinic and see if you are able to register with them for a discount on vet care - if you cant them speak to your vet and see if they will offer a payment plan which you can include in your dmp budget. Also check out local vets to see what the prices are - budget vets are in quite a few locations and as a chain brand are generally cheaper than smaller independent vets - if your dog needs prescriptions it can often work out cheaper to ask the vet to write you a prescription (usually £15 and lasts 6 months) and then get it filled via an online supplier - flea and worm treatments are much much cheaper online for name brands - I use advantage to do my 4 cats from the vets would be around £50 online I pay £20 with deliveryAnything is possible if you believe
Jan 2015 - £13,000 Feb 2018 £0 DEBT FREE WOOHOO now to start saving0 -
Stepchange, or any of the debt charities, will tell you you should pay no matter what, but that dosent always work well for the individual.
You could just stop paying altogether and allow all your accounts to default and get sold on.
This would guarantee all interest would stop, then re-start a DMP.
Lots of people are too keen to start DMP's, it only really works well when accounts are frozen and sold on, for non payment.
This would be the pro-active approach.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Right got myself together a bit more this morning so trying to be a bit less doom and gloom
Phoned Stepchange spoke to a very nice man who wasn't as scary as the fear I had before I phoned! so that is good!
He listened to me babble away and we did review and spoke about the interest issue. He says they ask for it to stop but.....
so Ive now written or emailed to debts and asked then to stop so we ll see what response we get.
Gonna try get some stuff listed on ebay this week as monies to put towards debts and start a debt jar to try save some money to put towards them. Then see where we go from there!0 -
backwherewestarted wrote: »Right got myself together a bit more this morning so trying to be a bit less doom and gloom
Phoned Stepchange spoke to a very nice man who wasn't as scary as the fear I had before I phoned! so that is good!
He listened to me babble away and we did review and spoke about the interest issue. He says they ask for it to stop but.....
so Ive now written or emailed to debts and asked then to stop so we ll see what response we get.
Gonna try get some stuff listed on ebay this week as monies to put towards debts and start a debt jar to try save some money to put towards them. Then see where we go from there!Time_to_face_the_music wrote: »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
Did you ever make complaints to your creditors as advised back in March? If not, you really need to do this now, you don't ask them to stop interest, you must write an official letter of complaint to each creditor with a follow up to the FOS if they don't comply.
TTFTM xLBM 10/1/12 ~ DFW Start 6/2/12: £82,344 ~ Now Zero:staradmin:starmod::staradmin Debt free 17th April 2015 :staradmin:starmod::staradmin
Eternal thanks to the DMP & Mutual Support (no.439) and Payment a Day ThreadsMortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads"Debt is normal. Be weird!" Dave RamseyProud to have dealt with our debt0 -
Hi
Yeah I have now written to them as I did a review with Stepchange as they asked me to phone and the man said though they ask to stop interest *and he would ask again* they are not obliged to but he said it wouldn't hurt to write and ask myself so I did last week Ive heard nothing as yet from any of them.
so will get back when I know more!
thanks x0
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