Should I stay in DMP

joslancal

This is my 3rd post and I think it's in the right place, the last two probably in the wrong threads but thanks to those who replied.

I've been on a DMP for the past 4 years paying £200 per month, I ca probably increase this by another £200.

I'm looking for advice on whether I should stick with the plan and keep increasing when I can or do I come out of it completely and go back to paying them seperately but then they will start the interest payments again and that will be tight.

I'm paying some of them a bit extra each month such as MBNA and Alliance and Leicester as it's keeps them away from the door.

I want to pay of my debts as quickly as possible and improve my credit score and I've done all the SOA with payplan and Citezens advice and I've also stripped my monthly bills down to the minimum for example we have got the weekly shopping bill down to £70 and there are 5 of us (wife and 3 kids)

If any of the people who have posted threads have expereince or views then I'd appreciate all your comments

boo80

Hiya, have your creditors frozen the interest? Have you thought about saving the extra money you are saving to make some full and final settlement offers? Are you organising your own DMP or are Payplan sorting it out for you? Sorry about all the questions!!

Fire_Fox

I don't think you are supposed to pay individual creditors extra if you are in a DMP: the arrangement is that each are paid pro-rata to the amount you owe. If you are getting hassle there are template letters on this board that can be used to stop all communication by telephone and any excessive or threatening communication (harrassment) by post.

System

Hi, I would be wary of paying creditors yourself if you are on a DMP as it may send out the message that you have more money to pay. Before I say if I think you should increase your DMP, May I ask who runs your DMP?

RAS

Yes

Unless this DMP is with one of the debt charities or Payplan, you are paying charges on it. How much per month?

joslancal

Thanks all, the DMP is run and arranged through payplan all the interest is frozen on my creditor amounts. I pay extra to MBNA through debit card each month but on the clear proviso that if I can't afford it it doesn't get paid.

RAS

i think you need to talk to Payplan about this as MBNA are forcing you to break the terms of your DMP.

System

Roger that, then if you can afford to increase it then do so, but I would stop paying the 'extra'. Let Payplan know if you are getting phonecalls/letters etc or let them know they should deal with Payplan as they are administering your DMP

joslancal

have done all of the above but was told by MBNA that offer on DMP did not meet minimum payments to stop defualt. I've already got one default which is killing my credit score so just did what I needed to do to stop a second one. The minimum payment they need to clear the debt within 10 years.
Listening to your comments I think if I increase the payplan it might take care of the additional payments so I can stop them. I know MBNA play hard and don't want to get in messy battle with them as I've been managing my accounts so well for a while, I don't have any credit cards, a cash only bank account with no OD, my wife is the only one with a seperate account with the debit card. I feel like we've turned a corner not sure I want to go back to the stress tha nearly broke us

System

Well I hope so, but RAS is right about them forcing you to break the terms of the DMP though. Well good luck, but remember not to leave yourself too short. How long now until your DFD?

joslancal

a long long time!! hence the question is it quicker to come out of the arrangement or stay with it In 4 years I've reduced my debt from 0ver 40K to around 34K If I double the amount of the arrangement then this will obviously decrease the time but I think my kids will have left home by the time it happens. key thing though, it will happen