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Posted: Fri May 08, 2009 7:04 am
by tele2002
I was thinking this morning, wouldn't it be nice (or scary) to know how much interest you have actually paid all your creditors over the years against the actual amount of money you borrowed.... Loans are very straight forward as they provide it when you take the loan out, but...
Overdrafts - I know they are variable as you have money going in and out, but should banks provide some real world examples of what it will cost you over time.
Credit Cards - we're all told that store cards are more expensive, but are they really? they normally have a higher percentage per month payback and thus go down quicker, so should credit card illustrate better what your long term costs are going to be?
Just a thought really as I'm sure I have easily paid in interested 10 times what I borrowed, it would be nice if that could then be used in your IVA settlement [:)]
Whats your thoughts?
Posted: Fri May 08, 2009 7:07 am
by David Mond
You and others would be shocked and devastated to learn just how much this is!!!
Posted: Fri May 08, 2009 9:00 am
by tele2002
If only it could be used as leverage!
Posted: Fri May 08, 2009 5:58 pm
by kallis3
That's something I would really rather not think about![:D]
Posted: Fri May 08, 2009 6:14 pm
by mickyboy
Oh boy, what a question tele2002,
This is something i definately do not want to think about.
It would be a very SCARY figure..
Posted: Fri May 08, 2009 6:16 pm
by sweet mysteries
My £100 overdraft has turned into over £1500 even though i have been paying some back through a dmp.
Posted: Fri May 08, 2009 6:23 pm
by kallis3
This is the only problem with a DMP - you are not guaranteed to have interest and charges frozen.
Posted: Fri May 08, 2009 6:34 pm
by sparklywatcher
well I was talking to Cheryl at cleardebt today - brilliant lady and she said that looking at my debts if I went into a DMP my 18k debt would end up in 5 years at 43k!!!!!!!!!! Now that was really really scary...
Posted: Fri May 08, 2009 9:29 pm
by MelanieGiles
Really - could David let us know how tht sum would be calculated. David is it your experience with your DMP clients that they end up owing twice as much after five years worth of repayments?
Posted: Sat May 09, 2009 12:08 pm
by GinSkipper
Interesting question Tele2002!
One of the reasons why we finally decided to try and seek an IVA was that we felt we had given repayments our best shot and despite some extremely large repayements being made, we still hadn't got any where!
At that point we felt that while it was our hole to get out of, the creditors have had more than their pound of flesh. Since realising that the original loans have been paid but we are still stuggling with the creditors very large 'icing on top', our guilt about making a dividend less than 100p in th £ is starting to subside!
Posted: Sat May 09, 2009 12:20 pm
by sparklywatcher
MelanieGiles wrote:
Really - could David let us know how tht sum would be calculated. David is it your experience with your DMP clients that they end up owing twice as much after five years worth of repayments?
Cheryl said that would be if the interest on my accounts were not frozen and I was paying under the minimum payment. - which ofcourse I would be as I cannot meet the current minimum payments on everything
Posted: Sat May 09, 2009 2:59 pm
by MelanieGiles
So was she talking hypothetically? Or with some experience of creditors who do not cease charging interest. If creditors generally do not continue to charge interest in DMP proceedings, which most of the DMP companies I work with tell me, then the comparision is a little misleading.
Posted: Sat May 09, 2009 3:15 pm
by sparklywatcher
I would say hypothetically as I was never really looking at a DMP anyway as I know it would take forever for me to pay it all off at the amount I can afford.
Posted: Sun May 10, 2009 11:50 am
by David Mond
MelanieGiles wrote:
So was she talking hypothetically? Or with some experience of creditors who do not cease charging interest. If creditors generally do not continue to charge interest in DMP proceedings, which most of the DMP companies I work with tell me, then the comparision is a little misleading.
It is quite simply a calculation that on the Mondo Matrix shows what is available for either an IVA or DMP over 60 months or 72 months or 84 months and even 10 years.
The calculation shows with the current interest charges made by the respective creditor each month and the payment pro-rated to each of them.
The calculation is also done withourt interest but reflects IVA charges and DMP charges.
Invariably much more either with interest not frozen (horrific!) to liabilities still due at end of 5 years and above.
This is then compared to IVA.
C'est la vie and more IVA's [:D]