The answer to this question isn’t simple. There are some situations where a creditor has to freeze your balance, occasions where they might and, of course, times where your creditor definitely won’t.
How to Get Your Creditor to Freeze Additional Fees and Charges
In certain scenarios, we can ensure that your creditors stop adding to your already outstanding balance. If we sign you up to a formal legally-binding debt solution, then any creditor included in the arrangement are legally required to freeze your balance. This means that you will start to pay back what you owe when the arrangement begins and no more.
It is worth noting that if you pay your reduced payment every month as per the terms of the agreement, then how much your creditors add to the total throughout the period would be of little consequence. This is because, at the end of the fixed-term arrangement, all remaining debt will be wiped out entirely.
Why Your Creditors Might Freeze Additional Fees and Charges
Creditors on certain occasions will freeze the balance of your debt as a goodwill gesture, even though they do not have to. This will usually occur so that you do not default on the debt, losing them money, or it can be from a place of genuine compassion.
If, for example, you find yourself suddenly unemployed due to redundancy or illness, your creditors might be quite forgiving. The most important thing you can do is to contact them and inform them of the situation before you miss any payments. This will show your creditor that you are aware of the situation and are committed to addressing it. If you ignore the problem, your creditors will have no reason to do anything in your favour.
There are also many informal processes, such as a Debt Arrangement Scheme or a Debt Management Plan, which can encourage your creditors to be more forgiving. This is because your creditors can see that you are committed to paying your debt back, and they may do what they can to make this easier for you. However, they are not legally required to do so – it is not unlikely, but you should not rely on it.
Why Your Creditors Will Not Freeze Additional Charges
Creditors are out to make money, regardless of the effect it has on you. If they think they will benefit from maintaining the charges, then they will. Remember, the people on the other side of the phone are just doing their job and realistically will have very little control over how much help they can or cannot give you.
If you are having trouble paying your bills, and don’t tell your creditors, they can’t help you because they do not know there is a problem. If you ignore every call, every letter, and even the home visits, they have no reason to assume there is a genuine issue that you are keen to solve.
They are also unlikely to freeze any additional fees and charges if they have reason to believe you will be able to pay back the full balance without defaulting. If there has been some mistake as the cause of your missed payments, or if your credit rating is stable and you have not missed payments elsewhere, then they have no reason to believe you cannot make the payments and any additional fees.
Do You Need Help Getting Creditors to Negotiate?
At debt free life we not only have invaluable experience in negotiating with creditors on behalf of our clients, but we also have unrivalled contacts within the industry that we can call on. If you are finding yourself in a position where you are struggling with your finances and need some friendly, professional help, then look no further than us.
For a chat, call one of our fantastic advisers on 0800 808 5124. Alternatively, just fill in our debt free calculator and our team will get an idea of your situation and call you with an appropriate solution.