just started DMP, income increased, what happens now?

ozzyfan_2

Has anyone been in the situation of having an increase in income whilst on a DMP with CCCS?

My DMP is still in the negotiating stage (I made my first payment on 1st March) & I have to make a second appointment due to the income increase I recently had. However on working out my budget this now means that I can afford to make the original payments on my loans which is a good thing but does anyone know what CCCS will do?

Will they stop the DMP & leave me to sort things out with my creditors, I am now 2 months behind on proper payments due to starting the DMP & would have to catch up with these which would be a struggle.

Or will they continue to let me pay the increased amount through the DMP though I'm sure that the chances of getting the interest stopped would be minimal if I'm paying the correct amount on the loans. If I'd known I'd have been getting the extra income I wouldn't have started the dmp & snowballed instead but now the DMP has started to be set up what will happen?

I would prefer to pay through CCCS but will they abandon me!?

Xbigman

You are right in that you will not get the interest frozen if you can pay the full amount. You should now inform CCCS that your income has risen to the point where you can make the full payments. You should contact your creditors and begin making your normal payments and come to an agreement to clear the arrears. Don't panic too much as you should be able to get agreements with creditors to pay these arrears pretty slowly. Its worth asking if arrears can be rolled into the debt over its whole lifetime or if payments could be extended so you pay the arrears at the end of the repayment period. This generally costs a bit more in interest but will give you time to sort it all out without creditors demanding huge sums now.
Regards



X

ozzyfan_2

Thanks very much X

My CCCS advisor is away until Thursday so I will ring her then.

I think most of my creditors will accept an arrangement to pay back the arrears but I am worried about HFC who are being very awkward at the moment & who will probably try to get me to go into their branch to take out another loan & add the arrears on at extortionate interest.

Not sure what to do about them as I don't want another loan again with them.