Considering a DMP but concerned my creditors will pursue further legal action

Suseka97

sourcrates said:

RebeccaO26 said:

I think my biggest worry/concern is that if my creditors keep adding on interest or fees etc then I am going to end up in a situation where, what should take me 7 years to pay off, may end up taking considerably longer and that is a genuine source of concern for me.  

  

Once an account defaults, that is it, the balance is frozen, no further interest or charges can be added, as technically, the financial relationship between you and the creditor has broken down irreconcilably.

This is the aim of everyone in DMP land, to get all their accounts defaulted, as soon as possible, it brings you two benefits, not only do charges and interest stop, but the 6 year countdown begins till it falls off your credit file, now some creditors are better at this than others, and default you pretty quickly, others just threaten it, which is no good to anyone, so you have  to be pro-active, if they won`t or don`t default you, stop paying them till they do, its sometimes the only way.

This is the reason I'm suggesting you stop making payments and hold off launching into the DMP - because of the preference to get all your accounts defaulted to ensure interest and charges cease.  Not just for an EF, which you seem to already have.  Once you've set up your DMP with SC, there's no guarantee that your creditors will stop the charges - some of mine did fairly quickly, whilst others took a good deal of persuading (for me that was Halifax and Barclaycard).

Hopeful yours will play ball - but delaying the start of your DMP will push them in the right direction