Confused by a creditor on a DMP

Gemmzie

Luckily, we haven't had that problem yet but National Debtline advised us to be wary of paying near the minimum as they are then entitled to re-instate interest.
How much difference would it make to the payments? If it's only a little then I'd go with what Sea said. But if it's more it might make the other creditors decide to re-instate interest too. It's hard!

milliejon

Thanks both. The company involved are not making any changes to the amount I pay each month - just adding interest (which I think is about £17 per month). The payments I'm making to them is about £10 more each month than the minimum would be (I think). I'm really confused about what to do. I've always been upfront with the creditors so my instinct is to include the interest payments when I update them, but like you say Gem, I'm afraid that the others will see and start adding interest too.

milliejon

Hi all - been loitering for a while and reading all the great advice here, but I'm really getting frustrated with my creditors. As above, this one added the interest, and another one has followed suit. Another has advised me that I'm no longer on an arrangement with them so that I'll start to have the interest added. The statements have started to come through and I'm actually only paying around £20 from two of them (with very much higher payments) and the other I'm only paying less than £5 per month, and nearly £3 is going on as interest.

Is this about right for interest? It's been such a long time that I can't remember. My worry is that now when I do my next update for the creditors, these three don't need letters, because they're happy to accept what I'm paying now (obviously more than the minimum payment would be I think). But the amount I owe won't have gone down as quickly as the others.

Basically, I have eight debts. Three are now off arrangement (well at least having interest added), and two are personal loans which had the interest added at the beginning, so I'll still be paying this just taking longer than arranged to pay it. The others are all store/credit cards and one bank overdraft. One of these has accepted my last offer, but only for 3 months so I guess I'll have hit my minimum payment with them too by then.

My worry is how I go ahead with the DMP with the others, whilst have three out of arrangement. My thought is to use the amounts that I would have had without the interest when working out the pro-rata amounts, then writing to those still on the plan to offer the new figures, and then just increasing the standing orders I pay to the other three. I just don't want the others to figure out what has happened as they'll all start adding interest - although I wouldn't really mind that as long as I can still pay the minimum amounts. I wouldn't be able to pay the loans the amount they would need though. I'm in such a pickle - I even applied for a loan through Citifinancial (although I've not heard anything from them in a week so I guess I haven't been successful) to pay off the whole amount.

Does anyone have any other way I could get around this? I think I will sit down with my paperwork tonight and look at the minimum payments etc and see if anything becomes clearer. I really would appreciate some advice.

tara66_2

I know that you are administering this yourself at the moment, but would you consider contacting CCCS or National Debtline for some advice?
It might be worth you posting on the DMP thread on here (sorry I can't do links) as peeps on there a very experienced at DMP's and some definitely self manage.
Hope you get sorted.
Tara x

moneylessbella

We have a DMP arranged through a charity started in july 06. We have 11 creditors in the plan all of which ceased to charge interest. Now Bank of Scotland and Sainsburys have reinstated full interest charges and also a £12 per month penalty for late payment. We have kept to the agreement of paying by the 7th of the month every month but that does not coincide with their statement dates hence the charges. The interest charged every month is more than the agreed monthly repayment therefore the accounts are just spiraling upwards. I have been advised not to pay them any extra as it will compromise the agreement with the other creditors.Any ideas what I should do as these two companies are not the largest creditors outstanding.

milliejon

Thanks both. I will post this on the DMP thread. I'm sorry Moneylessbella but I'm not sure I have any ideas. I hope you sort things out soon.