DMP Question

Faye449

Afternoon all :-)

Am about to start on a DMP based on my basic salary but was wondering whether you think its better to 1, throw all my commission at it and make as many additional payments as possible to shift it quicker or 2, save my commission with a view to making full and final settlement offers?

Will I get a choice?
Will either be worse for my already ailing credit rating?

miss_missy

hi
im not that knowledgeable about dmps but would have thought you can only put your basic salary as commission is not garanteed
i would personally only put basic and save the commission to do F&Fs to hopefully be debt free quicker

Faye449

Exactly, they wont be counting my commission so I am wondering what to do with it. I can just ask the CCCS on monday but thought I'd see if anyone had any pearls of wisdom first :-)

Numpty_Monkey

You can save it as miss_moppy says to do F&Fs, or you can make additanal payments to CCCS to distribute to your creditorson pro rata basis

I think most people save the money to do F&Fs

missal

I'm no expert but what about doing the snowball on makesenseofcards (i think!)

Once you have done your SOA if you have a good idea of what your comission will be, you can enter that info and it will tel you how quickly you can pay your debts off in (literally throwing everything you have in could mean you spend considerably less time paying them off)

Saying that if you have a lump sum and can get a f&f you might be able to clear it sooner than paying the whole lot by spending every spare penny on it every month until it's cleared.

How's that? - Clear as mud?!? Hopefully it makes some sort of sense!

Missal

Deep_In_Debt

It's generally not advised to throw extra money during your dmp as it could open a can of worms with your creditors as they could start wanting the extra amount every month.

As others have suggested and as I have done, saved the money (somewhere where you might get a bit of interest too) and make F&F's along the way.

Good luck.