Payplan

Pere_Ubu

What my husband and I have decided t do is to save the extra money we do get and aim to pay off some of our debts in one hit and then tell Payplan. I don't know how they will take it but we feel that we want to pay off our debt quicker and reducing the number of creditors is one way of doing it.

mattp_3

the best solution is to save the extra cash until you have almost enough to clear your outstanding debts (ok I know this will take a few years, but bear with me!) then if you speak to Payplan or CCCS and explain you have a lump sum - they will contact the creditors for you and ask them if they will accept a reduce final settlement?

So for example if you have £5,000 left outstanding to a loan and through your DMP you have been paying them £150 per month, but you can offer them £4,000 in one go to clear the debt in full - there is a good chance they would take it, as it means they do not have to wait another 33 months for their money (and there is no danger of you missing payments or defaulting)

Not ALL creditors will go for this, but if only 1 or 2 accept a reduction, it could save you a lot of money??

in-trouble_3

Pere_Ubu wrote:

What my husband and I have decided t do is to save the extra money we do get and aim to pay off some of our debts in one hit and then tell Payplan. I don't know how they will take it but we feel that we want to pay off our debt quicker and reducing the number of creditors is one way of doing it.

sorry this is a old post but that is what we are going to be doing, when we get extra money in put it aside and when we have a reasonable amount pay off some of our debt, not sure if this will be ok

Pere_Ubu

We have taken our "debt" off Payplan they screwed up big time. We were making payments to payplan but they were not passing them on to creditors, big admin error. Our creditors still stuck to the original agreement and this has left us free to increase payments as and when we are able. As long as we maintain monthly pre-arranged payment amounts.
Payplan have £500 of ours that they have not passed onto creditors so we are currently trying to get this back. I know we can do a small claims but was trying to resolve it without taking this action. I think they are a victim of thier own success. When ever we talked to them about increasing the monthly amount they said it would make it too complicated as they would need to pro rata it out which I can see would make it difficult but now we have taken it off them we can make increases to one creditor at a time and start to pay them off quicker that way. Good luck!

in-trouble_3

I am sorry to hear that. hope you get it sorted.

Pere_Ubu

mattp wrote:

the best solution is to save the extra cash until you have almost enough to clear your outstanding debts (ok I know this will take a few years, but bear with me!) then if you speak to Payplan or CCCS and explain you have a lump sum - they will contact the creditors for you and ask them if they will accept a reduce final settlement?

So for example if you have £5,000 left outstanding to a loan and through your DMP you have been paying them £150 per month, but you can offer them £4,000 in one go to clear the debt in full - there is a good chance they would take it, as it means they do not have to wait another 33 months for their money (and there is no danger of you missing payments or defaulting)

Not ALL creditors will go for this, but if only 1 or 2 accept a reduction, it could save you a lot of money??

I agree with this. We have saved some money nad have already been offered a 50% reduction with 2 of our creditors which we have taken up and have agreed a date in the New Year when we have to make this 50% reduced amount by. They approached us with a figure but managed to get it a little lower.