| Creditors are not obliged to freeze interest charges. They may freeze interest for a limited period of time or charge interest at a reduced rate. This means that it is possible for the total debt to increase, particularly if your monthly payment is very low
Creditors can go to court and obtain a County Court Judgement, bankruptcy petition or attachment on property-equity etc in respect of a particular debt
Creditors may still issue a default notice which will show on your credit file
Creditors do not have to accept your offer of reduced payments. If they do accept they are entitled to review your situation at anytime
You will pay your creditors in full over a longer period than the initial agreed term
You may be required to pay greater contributions as time goes by ( e.g. if you get a pay rise)
The term of the arrangement is not fixed |