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Loserpippa
Posts: 6 Forumite
Hi I'm new to this, so wasn't sure where to post this. I initially posted in the loans section and got some advice, but some said that it's my own fault. I just needed some advice please. Firstly I should tell you that I'm on a DMP with Stepchange- I have 2 credit cards . One of them has frozen my interest. The second one (£9700 with Halifax) refuse to freeze the interest as i can pay the minimum through the DMP. My issue is that I am paying £150 a month, but only £50 goes towards the main balance. They are charging me £100 a month in interest. I called them and they said that they couldn't help. I cant get a loan as it's not allowed as I'm on a DMP. Also my credit rating is not great.I don't know what to do. I'm never going to pay off the Halifax card at this rate and I'm feeling quite depressed and anxious about it. I don't have anyone to talk to. Please help!
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Hi pippa,
And at last, welcome to the forum.
It's always difficult when your on a DMP and one creditor refuses to stop interest, now stepchange will advise you to keep paying them no matter what, but that's not always the best option for you.
Most DMP'ers will tell you they developed there own ways of dealing with stubborn creditors, now essentially you have two options here :
(1) You can carry on as you are and hope Halifax relax there attitude.
(2) You take matters into your own hands, either pay them nothing, or a token payment of £1 a month, this action should see your account defaulted pretty quickly.
Once defaulted, no further charges or interest can be added, and your free to resume your normal DMP payment.
Your "problem" lies with stepchange, as they will not sanction such actions, SC are funded by the banks you see, so whilst they do Stirling work for people in trouble, it's a "one size fits all policy' and as you have found, not best suited to everyone's situation.
It would possibly mean self managing your affairs, would you be caperble of doing that ?
Unless you keep pestering the Halifax with letters demanding they stop interest on the loan, and they do so, then this, unfortunately, is your only other option.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 -
Thank you so much. 2017 is my year of change. I won't give up on this- I know it's my own fault for getting into this mess, but I'll get out of it too. I'm going to leave it until after Christmas and then call Halifax and SC with a revised budget plan showing how the minimum won't be paid. I'm not bothered too much by the credit score. If I default then so be it. Thank you again for all your advice x0
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Loserpippa wrote: »Thank you so much. 2017 is my year of change. I won't give up on this- I know it's my own fault for getting into this mess, but I'll get out of it too. I'm going to leave it until after Christmas and then call Halifax and SC with a revised budget plan showing how the minimum won't be paid. I'm not bothered too much by the credit score. If I default then so be it. Thank you again for all your advice x
No problem, any further help you need, feel free to ask.
Have a nice Christmas !!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 -
I agree with everything that Sourcrates says.
If you are going to nag Halifax, do it in writing.
National Debtline have a sample letter here, asking a creditor to freeze interest.
https://www.nationaldebtline.org/EW/sampleletters/Pages/Freeze-interest-%28sole-name%29.aspx
In your case I would add:
I note that you are a Registered Firm with the Lending Standards Board and subscribe to the Standards of Lending Principles. This states that Firms should consider reducing or freezing interest when a customer is in financial difficulty.
Please respond to this request within eight weeks, setting out your reasoning for your decision so that I may consider referring this matter to the Financial Ombudsman Service.0 -
Just stop paying them. It will screw you for the next six years from the date of the default which will take about six months from last payment but could save you £k's. Once it has defaulted no more charges will be added and your £150 will go towards the balance. Halifax will eventually sell the debt and the buyer may accept an even smaller payment to settle the account early thus saving you even more. I am not recommending any of these actions.0
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worried_jim wrote: »I am not recommending any of these actions.
But they make sound common sense !!!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
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