Can you get Creditors to Freeze Interest and charges? The answer to this question is that there is no guarantee that you can. When you are on a Debt Management Plan, most of the time you should find that interest and charges are frozen. However that is not always the case.
The problem is that if additional interest and charges are being added onto your debt, it is going to take you longer to pay it back and in some cases, it could mean you may never pay it back because your payment just doesn’t cover the amount.
On the Debt Management plan I currently have, I did manage to get all interest and charges frozen. It was a case of asking for this to be done, and in some instances it was done automatically. However there are occassions where this might not happen, and it could be a horrible situation to be in. Especially if this interest and charges is increasing what you owe each month.
What other options are there to stop interest and charges?
If you are currently on a Debt Management Plan and you find that you are being charged interest or charges on top of your existing debt, you should consider a more formal solution. A Debt Management Plan is not legally binding so creditors are still allowed to charge interest and charges. It would have been part of the terms and conditions when you signed up.
You could write to the creditor and ask them to freeze the interest and charges and see where that gets you. In most cases they are normally reasonable, especially if what they are adding on is just pushing you further into debt. If they are not budging and your debt is becoming a problem then you may be better off looking at alternate solutions. There are a few other ways to manage your debt which could help you.
For example, you could consider an Individual Voluntary Arrangement or a Debt Relief Order. These are legally binding solutions and could be better for you and your situation. Once these types of debt solution are in place, additional interest and charges stop, and you should have a clear plan of how you are going to pay back your debt.
If you are struggling with Debt and would like to get some help, please visit the Get Debt Help section of this blog. On that page you will find a list of organisations who can help you with your debt problems.