Increasing my payment to payplan

Completely_Confused_2

Hi all,

Please can you give me some advice on this?

I currently pay £668 to Payplan per month on a combined unsecured debt of approx £37k.

However, I am getting a promotion and payrise and, with cutting our utilities etc, come April I will be able to afford to pay £1,000 per month towards my debt.

My question is can I just increase my standing order to Payplan and they will apportion the amounts as they do now?

Or, would you recommend that I save the difference and let it accumulate in a savings account and make some full and final offers nearer the conclusion of the arrangement?

A little bit confused by the process of increasing but I just really want to get my debt cleared asap, so that I can have another child. Obviously I don't think it's sensible to do so having this hanging over my head.

By doing the above, 4 out of 5 of my creditors will then be receiving more than they were requesting while I was paying normally before I went to Payplan. The reason I did so was because the interest rates were going up and up and it just became unmanageable.

I'd appreciate your thoughts, many thanks.

With love, CC xx

immoral_angeluk

How long is your plan set to run? At £1000 a month you'll be paying that off for 37 years.... would it be a better option to go bankrupt?

DanielleNic87

immoral_angeluk wrote: »

How long is your plan set to run? At £1000 a month you'll be paying that off for 37 years.... would it be a better option to go bankrupt?

Wouldn't that be 37 months?!?!?!

immoral_angeluk

DanielleNic87 wrote: »

Wouldn't that be 37 months?!?!?!

you're right sorry.... brain apparently isn't working tonight. :rotfl:

broadpaws

definatley - save it up and make offers when you have lump sums, if suddenly you can pay more they may start to pop intest back on .

ald65

prehaps an idea would be to make an increase towards your payments , however maybe not the full £1000. I would try and put some of the money aside for unexpected outlays.
just a thought

Completely_Confused_2

broadpaws wrote: »

definatley - save it up and make offers when you have lump sums, if suddenly you can pay more they may start to pop intest back on .

Many thanks for that. Sorry, but now I have more questions...

1. What would a fair offer be as a percentage of each balance? Just so that I can have a go at working it out.
2. Am I allowed to make offers to each creditor as I have the money? For example, my smallest debt is £420 and I could almost pay that off in one month.

Thanks again

CC xx

ald65

ps should have said if you go on the justabank web site you can submit new payment online. Payplan then send you a new form to sign , let your creditors know and all you need to do is adjust your standing order.
good luck whatever you decide to do

broadpaws

hello

you can deal direct with the creditor for example and clear the lowest one, then contact payplan and instruct them to male no more payments to that creditor you can then keep paying the same amount into payplan and they will eithier increase the payments marginally to teh other debt, just tell them your family cleared it for you if they ask.

F&F can vary, some have achieved 25% some 75% - there are lots of threads here about F&F which may help a bit more - just get the money behind you and cross that bridge as and when x

Good Luck xx

DVardysShadow

broadpaws wrote: »

hello

you can deal direct with the creditor for example and clear the lowest one, then contact payplan and instruct them to male no more payments to that creditor you can then keep paying the same amount into payplan and they will eithier increase the payments marginally to teh other debt, just tell them your family cleared it for you if they ask.

F&F can vary, some have achieved 25% some 75% - there are lots of threads here about F&F which may help a bit more - just get the money behind you and cross that bridge as and when x

Good Luck xx

Aren't you on dodgy ground to pay one creditor more????

Deep_In_Debt

I'm on a dmp with CCCS and with payrises and getting another job with more money, I managed to save as much as I could and made F&F's on some of my smaller debts along the way. The extra money from my monthly amount gets distributed to my other creditors.

As previously mentioned, I was loathe to increase my monthly repayments as some of my creditors would be receiving the same, if not more, then the minimum I was making before my dmp and therefore they would be likely to start charging interest.

I cleared some of my debts at 45% although I could have done better. I waited until the debts were sold to DCA's who buy the debts for pennies in the £ and generally accept lower F&F's. The original creditors would accept nothing less than 70%. I'd start low - 20-30% which leaves a bit of room for negotiation.

Good luck.