DMP and dealing with Creditors

bananah

Hi,
Not my first post regarding a DMP, but I just wanted to see what other people's experiences have been.

We have a possibility of getting a windfall, and we're wondering how best to use it. We have about 50k in our DMP, and we're thinking we could offer some full and finals on some of the smaller creditors.

The CCCS, who are managing the DMP, state that we should offer the amount to all creditors and they will share it out. However, we have some creditors STILL charging huge interest, even though they know we'll never pay it off. The CCCS can't really do anything and just send us letters saying "we will continue to pay them the minimum amount in your DMP" so we're going nowhere.

Rather than split this amongst all creditors, would it not be better to offer F&Fs on 2-3 smaller ones? If they agree we can get them cleared!

The issue is, are we allowed to do this with the CCCS? Are they likely to stop supporting us?

Thanks for any advice on this.

Deep_In_Debt

Is it enough to offer F&F's on all your creditors? If you've got enough to make F&F's on all your debts then why not do that and clear them all off?

If not, I'd be inclined to use it on the ones who are charging the extorionate interest and be done with them if you have enough to do that.

I'm with CCCS and made F&F's along the way on some of my smaller debts but still paid the same amount into my dmp so the other creditors receive more.

bananah

Its never enough to pay them all, not by a long way. We're hoping to clear 2--3 smaller ones (500-1000 each). If we manage to get them down to 50-60% of the total on F&Fs then surely that will benefit the other creditors as we will have more to give them!?

Its just that the CCCS say we shouldnt do it, and we don't really want to lose their support.

cheers

Deep_In_Debt

I would be inclined to start lower than 50-60% for a start. Try 30% as a starting point and it leaves room for negotiation.

CCCS were the opposite with me when i told them and encouraged me to do it as it would clear my debts more quickly. Your other creditors will be happy as they will be receiving more and you'll be clearing your debts more quickly.

go for it.

Let us know how you get on. National Debtline website has a good template letter you can use for this purpose as you need to make sure it is in writing and not done over the phone.