DMP question

swansea_lad

I have been paying my DM since September 2019, with no problems all the creditors stopped the interest.

 mbna are now adding interest to my debt. Any advice on a way forward?

sourcrates

Two avenues you can go down, either, make a complaint, say that by the addition of further interest HSBC are not allowing you to pay down your debt as quickly as you could be doing, which you regard as unfair.

Or, simply stop paying them, they will, eventually sell the debt, once defaulted, all interest and charges stop, for good.

Ideally all accounts should be defaulted, and sold before even starting debt management, then you avoid this problem altogether.

swansea_lad

I have contacted MBNA and they say as i am making the contractual payments interest will be charged.

sourcrates

swansea_lad said:

I have contacted MBNA and they say as i am making the contractual payments interest will be charged.

Then you need to stop making the contractual repayments.

This is why its imperative, you stop paying for a good 6-8 months before entering debt management, in order to get your accounts defaulted.

Your choices now are carry on as you are, and keep complaining, or to stop paying them, we encounter this all the time, people keen to keep on paying thinking its helping them, when it most certainly is not always the case.

Suseka97

We found ourselves in a similar situation with Barclaycard.  After many letters back and forth, they eventually reduced the interest to around 1%, then a few months later they defaulted the accounts (again, after much complaining on my part) and interest stopped altogether.  

Once you are in a DMP you really need to be pushing for your accounts to be defaulted so that interest and charges stop, which allows you to pay down the outstanding balance far quicker and often the only way to achieve that is to stop paying them altogether until they default.  You can then make your payment arrangements either with the original creditor, or more likely at that point with a DCA.