Cant I Do DPM myself with Interest Frozen?

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Baba_2
Baba_2 Posts: 36 Forumite
in IVA & DRO
I am in debt of about £16k. All on credit card. No thanks to interest on cash withdrawal.
I honestly dont want IVA or BR.

Cant i just write a SOA, sent it to the creditors.

What is the chance of getting the interest frozen?


Cheers

Comments

  • lexie2005
    lexie2005 Posts: 121 Forumite
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    Hi Baba, you can certainly try it, my in-laws did it with the help of their local CAB (think they just told them how to do their SOA & their letters) but after just over a year their creditors turned nasty & they have ended up with a charge against their house. Have you not considered a DMP through one of the debt advice agencies people on here recommend, sorry I can't remember what they are called but they are in lots of peoples siggies. Good Luck with everything....
    :grinheart I'm getting there...... slowly but surely
  • lexie2005
    lexie2005 Posts: 121 Forumite
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    Just checked some threads & it is CCCS that can advise you....
    :grinheart I'm getting there...... slowly but surely
  • Baba_2
    Baba_2 Posts: 36 Forumite
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    Thanks Lexis

    I am just after the interest frozen. Once that is done, i will be able to manage the debt well.
  • lexie2005
    lexie2005 Posts: 121 Forumite
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    Really not sure on that one Baba, I would have said if it was that easy then more people would do that. CAB may be able to advise you. Good Luck with it though....
    :grinheart I'm getting there...... slowly but surely
  • CCCS_Sarah
    CCCS_Sarah Posts: 1,555 Organisation Representative
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    Baba wrote: »
    I am in debt of about £16k. All on credit card. No thanks to interest on cash withdrawal.
    I honestly dont want IVA or BR.

    Cant i just write a SOA, sent it to the creditors.

    What is the chance of getting the interest frozen?


    Cheers

    Hello,

    You would be able to offer creditors reduced payments yourself, and ask them to freeze the interest and charges for you.

    If you run your own dmp it is still the same principle as going through organisations such as ourselves or CAB. There is never any guarantee that the creditors will stop the interest and charges for you.

    The key when offering reduced payments is to stick to a monthly payment that you can afford, and don’t feel pressured into paying anymore.

    If you need any help completing a financial statement CCCS will be able to help you. If you would like an appointment, please call 0800 138 1111.

    Hope this helps
    Sarah
    I am a Debt Counsellor that works for the CCCS and have specific permission from Martin, to post on these boards to try and help those in debt. Read more information on the CCCS and what it does in the Debt Problems: What to do and where to get help article.

    CCCS is a registered charity, and there is no charge whatsoever for any of the services we provide to our clients. We take great pride in offering first class help and advice, but we only offer this where we have been able to fully explore and understand your circumstances with you. We want to help you understand these choices and their possible implications but not make them for you.
  • munchkinsmum_2
    munchkinsmum_2 Posts: 4 Newbie
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    Hi,
    I've managed to do a self managed DMP for a couple of years now and, apart from a few calls from MBNA chasing exact payment dates, it's all gone smoothly. Most ask for a financial review every 3-6 months but as long as you pay what you've agreed they pretty much leave you alone.

    Good Luck!
  • PT66
    PT66 Posts: 55 Forumite
    First Anniversary Combo Breaker
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    Hiya In my experience it is down to the individual credit card companies. I have £27k debt over 3 cards, TSB Mastercard, MBNA & Co Op Visa (ex Northern Rock). When I got into financial difficulty when my business went belly up, TSB were pretty unhelpful until I had missed 3 payments. Then they put me on 3 months reduced payments and during this time I paid £134 instaed of £135 so they closed the account. Still paying it off (£150 pcm) and still being charged interest. MBNA were good, agreed reduced repayments and after 3 months they wrote off a considerable amount of my arrears. Now paying back as normal with interest charged. I thought co op were the most unhelpful - very off hand staff and put me to a debt managment company. I believe however it is not an independent company but part of the co op. I am now paying them back at 0% and it is the only balance that is really reducing. My credit history has been damaged by my previous missed payments but I hope to repair it in the next 6 months and clear the balances with a loan. I will never get a credit card again!!!

    Good luck.

    Phil
  • Baba_2
    Baba_2 Posts: 36 Forumite
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    Thank you guys, i am indeed very grateful.

    How do i go about it?

    (1) Do i offer each of them what i can afford?

    (2) Do i give all of them a copy of SOA?

    (3) How do i "word" request for interest frozen?

    Cheers
  • gandolf_2
    gandolf_2 Posts: 2 Newbie
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    The only thing is that it wont be legally binding mate. They are within thier rights to raise intrest or demand payment in full. I used a site calledhttp://www.credit-debt-help.co.uk and was able to get the same issue sorted. Hope that helps
  • Deep_In_Debt
    Deep_In_Debt Posts: 8,579 Forumite
    Photogenic First Post First Anniversary Mortgage-free Glee!
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    National Debtline website has a good template letter that you can use for this. Just amend it to your circumstances - the website also explains how to work out the pro rate payments.

    I'm on a dmp with CCCS but thinking of going it alone soon now that CCCS have done most of the "leg work" for me and started the ball rolling.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
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