is tis standard practice?

[leigh_p]

Hi,
I have begun my DMP and sent out letters to my creditors, I have had a couple of them accept, a debt recovery company and a solicitor, I have also had a couple of letters making an offer, 2 loan companies have offered to re-finance my loans with the payment I have asked for but with additional payments (around 5) to cover the extra interest incurred by the additional time, is this the norm? Also my bank has offered to consolidate my credit card and overdraft into a managed loan at 1% above the base rate also at the payments offered but again with additional payments, please could you advise if this is standard practice?
Thanks for your assistance.
Leigh.

[Viki.W]

Hey Leigh, welcome to the forum. Sounds about right, the creditors want all of their money back, if they can get you to sign up for a loan then they will......plus interest. Stick with your DMP as consolidation loans don't always work, you might end up in a worse mess. If you want to post a few more details about your debt and circumstances then we can help further.

[kallis3]

Hi Leigh and welcome.

The bank wouldn't be HSBC would it? They are terrible for trying to get you to take out managed loans, they tried it with us and even sent us the forms to sign making out that we'd asked for it!

As Viki says, carry on with your DMP, that way you will be paying your creditors back at the rate that you can afford, not what they reckon you can afford.

[David Mond]

My advice would be to speak to an expert (visit www.iva.com) who will advise the best solution for you.

[leighpeabody]

Hi All,
Thanks for the advice, I called HSBC and told the person in the call centre that I did not want a managed loan and that I was trying to to control of my debt and not add to it, they advised they would only consider a managed loan and were not prepared to negotiate, I pointed out that if I did not pay the balance then they would send the debt to an agency who would accept the offer (which seems to be what is happening with other debts) This isnt ideal as the debt will continue to accrue interest. Please help?
Regards,
Leigh.

[Viki.W]

Hey Leigh, I think this exact same thing happened to Jan, I'm sure she'll be along in a minute to advise you of what she did. X

[kallis3]

Viki is right, HSBC actually sent us the forms for the managed loan and told us we had applied for it. The monthly payment they were asking for was way more than out reduced payment,it wasn't much less than our loan payment. No way could we afford it.

We never sent the forms back, and just continued to pay them the reduced amount we had sorted out. They still continued to phone and write, but as long as you are making a payment to them, there shouldn't be a problem.

Eventually, they will sell the loan on, and your payments will be accepted no problem. Ours were.

Don't let them bully you into taking out this loan. Write to them and inform them that you don't want it, and the payments you are offering are the only ones you can afford. Once it is sold on, you will probably find that the interest will be frozen.

Hang in there.

[David Mond]

It seems to me that you need to speak to an expert to advise whether a DMP or IVA or even a Consolidation Loan is the appropriate solution. Don't try and do it by yourself. Seek professional help from the professional experts. AS I have previously posted visit www.iva.com where you will find details of reviews on experts. Good luck.