Considering DMP

gargrave50

We are considering a DMP with CCCS (who are lovely aren't they!), however my question is this.

When on a DMP does that stop you make any overpayments to creditors directly? On the odd occasion where we have any extra cash (eg car boots) would we be able to overpay anyone? I suspect not, but thought I'd check with the experts i.e you lot! :money:

jonnym8083

ni i was looking a t a dmp with cccs and i have a monthly commision bonus. they said they would only take my guranteed income into place to work out what i can afford to pay but i can throw a lump sum in at any time and that would get equally diveded up between creditors. so yes you can no problem
you can only give lump sum to cccs you could not just call one creditor and pay them off it has to be shared between all creditors.

dancingfairy

I think you can make extra payments. However
1) you might be better saving it for emergencies cos things do sometimes go wrong and as you will be a dmp you will no longer be allowed to get any credit so any spare money you might want to save up for when the washing machine breaks, the roof leaks, the kids have to go their school prom or an outing or whatever, etc, etc.
2) you are meant to treat all creditors equally so I guess an spare money would have to be divided up equally and possibly have to go via CCCS? you would need to check with them.
3) you might want to save up to offer full and final settlements - ie a lump sum at the end to pay them all off.

df

DevonGirl

I agree with Dancingfairy's post (above). It's easy to get enthusiastic at the start and, while I'm not knocking that at all, don't forget that once you're on a DMP you agree to not take out any more credit. Therefore EVERYTHING has to come from your budget and life means that things are always cropping up that you don't expect. Previously i'd shove these little things on my so-called 'emergency c/card' - and before I knew it I was an extra grand in debt, so please stash any extra cash away. If you need it, it's there, if it you don't, then after a period of time you can pay off a creditor or make a lump sum to be divided to all creditors. Also I think CCCS have advised that constant overpaying would suggest that you have more available than you've revealed in your budget, and creditors will start pushing for regular higher payments.

Sorry if I sound negative - don't mean to!!!

Numpty_Monkey

To go with what DF says in point 2,
CCCS treat all creditors equally based on "pro rata" payments, whoever you owe most to, gets a bigger share of any payments.

Point 3
CCCS are happy for you if you can make a F&F to 1 creditor at a time if you can ,but clear it with them first

And CCCS are very lovely:A:T

gargrave50

Thanks guys I really appreciate all your help. It certainly clarifies things. I reckon I'll follow your advice and store spare cash away keeping some for emergencies and where possible eventually using some to make F&F offers one at a time! Thanks you lovely people - will definately be signing up to DMP. Wish I hadn't gotten ourselves into this situation all the same! Have a mystery shop for today (£12.50), new current account details came through today for an account away from any bank we have a financial relationship to - and I'm planning a NSD! Motivation is wonderful eh?!