Default and interest?

A question about : Default and interest?

Hi,

I'm planning on switching my DMP from Payplan to StepChange - probably not worth going into details as to why. From my limited experience, these things generally don't go smoothly and I imagine a few payments to creditors will be late during the transition.

My bigger debts are all defaulted and from my credit report it looks like after defaulting interest has stopped being charged. My question is whether creditors can apply interest after a default. I'm concerned they may retroactively apply interest on all my accounts which would wipe out the progress I've made so far over the past year on bringing down my debt. That would potentially be over Ј5k wiped out

Does anybody have any similar experiences?

Many thanks in advance for any help!

Best answers:

• OP, just make the payments to your creditors yourself during the "transition period", all a debt charity does is pass on your payment, there is no reason you cant cut out the middleman and pay them directly, you don't really "need" anyone to do this for you, especially if you have all your creditors payment details, its very simple to do, then there would be no problem would there.