On a DMP and want to treat one creditor differently...?

Deep_In_Debt

I wouldn't suggest leaving the HSBC debt off - as all unsecured debts must be included in the dmp otherwise it will become void.

It really shouldn't be a problem, Payplan will want you to pay your debts as quickly as possible and you are doing that.

MyLastFiver

I don't get it - you said earlier that you have paid some of your creditors in full. Presumably they've now disappeared from your plan then?

insider66

A DMP is an informal agreement. You do not sign any declaration that you have given full details, nor is it legally binding.

You could negotiate payments with individual creditors yourself, and no creditor will ask you if they have been worked out pro rata....

Some creditors will say things like "if you increase payments by 20% we'll freeze interest" - and those things are done so it's no longer pro rata either.

debrag

I am the same with wanting to treat one creditor differently.

I have a loan,OD & CC with TSB all on a DMP with Payplan. I have been told I no longer have an OD and my loan has gone down ALOT. I need to remove my OD from the DMP but am unsure what to do with the loan. I don't want to decrease my payment as it will be paid off in 6 months at this rate (plus I don't want interest to be added again) should I just remove my OD and in 6 months get Payplan to re calculate my payments or remove both the OD & loan and reduce my payment to Payplan by the amount I'm paying on my loan so i can pay them myself?

Deep_In_Debt

MyLastFiver wrote: »

I don't get it - you said earlier that you have paid some of your creditors in full. Presumably they've now disappeared from your plan then?

Yep, they were orignally all included in my dmp but I managed to raise some funds to pay them.

Deep_In_Debt

insider66 wrote: »

A DMP is an informal agreement. You do not sign any declaration that you have given full details, nor is it legally binding.

You could negotiate payments with individual creditors yourself, and no creditor will ask you if they have been worked out pro rata....

Some creditors will say things like "if you increase payments by 20% we'll freeze interest" - and those things are done so it's no longer pro rata either.

They do actually ask to see what you have offered other creditors - they normally want a fully breakdown before they consider your dmp and freeze interest.

Been there, done that!

insider66

MyLastFiver wrote: »

This gets a bit complicated - please try and persevere!

1. Interest on the loan is "pre-loaded" so by making monthly contracted or DMP payments I'm not being forgiven any interest.

2. Despite my written requests HSBC are continuing to charge interest at full rate on my overdraft.

3. All my other creditors have stopped interest.

Interest has already been stopped...

I appreciate you have experience of your DMP DiD, but everyone' isn't the same.

insider66

Deep_In_Debt wrote: »

They do actually ask to see what you have offered other creditors - they normally want a fully breakdown before they consider your dmp and freeze interest.

Been there, done that!

I was talking about negotiating directly with the creditors, not a DMP

Deep_In_Debt

I appreciate that but creditors still like to see that they are being treated fairly.

Not sure who are are or where you are from but you seem to be going against all the advice that people are trying to give.

Deep_In_Debt

Other creditors might then start to charge interest if they feel they are not being treated fairly.