help!

bones61

I would pay off the 1000 on the cc and then see if the 9000 left could be used for reduced F&F payments to clear debts through the DMP, must be worth a try. good luck either way

moneyworry_2

What just pay the cc off and not tell the debt management company then offer the money to distribute?

skintandscared_2

If your other creditors were watching your credit report they would already know you had the card and would be cancelling your DMP. I don't actually know how you managed to get it - I thought DMP wrecked your credit rating, but that's irrelevant.

Look, it's up to you. You either

1. clear this rogue card that nobody currently knows about, and offer the rest to your DMP managers to share round, then carry on paying the rest of the balances (but take the chance that the creditors might start charging interest again as the balances left will be quite small). I suppose there is the chance that your credit file would suddenly show a discharged debt but I don't know how they would find out about that?

2. clear the rogue debt and keep the rest back, waiting for F&F settlement offers; or

3. 'fess up and tell your DMP manager about the rogue card and the money. They may cancel your plan altogether, but then you could pay off all but £1.5k anyway. The creditors would start charging interest again so you'd then have to budget to pay off as much as possible as quickly as possible.

You have to do what you feel most comfortable with.

moneyworry_2

well the reason i got the card was because before i went on a DMP i opened a new bank account, they gave me a card then but i never used it, cut it up. Then one landed last year I presume because the other one had expired then all these bills started racking up and just did it. I'd had a really rough time with my realtionship breaking down, operation and deaths in the family. I just saw it as an easy way..... Stupid I know but i did it and i feel ashamed about it.

skintandscared_2

Don't feel ashamed. You were desperate and you did what you had to do. There's no point feeling bad about it now. You have the means to deal with it AND pay a nice big chunk to the other creditors too. I can't see how it's a bad situation. What are your DMP payments at the moment? How long would it take to clear the last £1.5k? You could be debt-free much sooner than you thought. Look on the bright side!

moneyworry_2

im paying in £180 a month, i feel ashamed cos i managed so long living without credit then stumbled.

Mrs_Sparkle

Please stop giving yourself a hard time. If you learn from the mistake then it's not the end of the world is it? Don't be ashamed, please- we all make mistakes. It's not as if you went out and blew a grand on a holiday is it. Big hugs to you, you sound really upset.

moneyworry_2

Thank you Mrs Sparkle

crapwithcash82

Hi Moneyworry, I'd say the same as bones61, pay off the £1000 on the credit card and then the remaining £9000 on the DMP, they're surely not going to give you a hard time if you're paying off 90% of your DMP - and just think how great it will feel if you only have £1500 left of your DMP!! Keep your chin up and let us all know what you decide and how it goes. Good Luck! xxx

skintandscared_2

See, there's lots of us with the same opinion. Clear the £1k card and forget about it. Make the creditors very happy by giving them a wad of cash. They won't be worrying about what else is paid off (and actually it is entirely possible that one of your known creditors COULD be paid off entirely with this payment, so it's not going to look strange if there's suddenly a discharged debt on your credit file).

Just thank your lucky stars for the windfall and use it to get things a bit straighter. Stop feeling bad about it! Best of luck.