DMP Monthly Repayments

mikon

Hi everyone

Well I have taken the decision to go with CCCS and undertake a DMP. I am awaiting the paperwork from CCCS. What is baffling me is that I have 10 creditors and my SOA shows that I have £550 disposable income a month after my priority debts and living expenses have been paid.

My question is :

Will each creditor get £55.00 per month as they need to be seen to be getting dealt with fairly. If this is the case then 2 of my creditors will be getting more than I pay now and other creditors will be getting just below the minimum monthly payment and others will be getting a drastic reduction.

See Example:

Argos Debt £1,100. Monthly minimum payment at present is £24.00 per month. DMP will this be £55 (£550 divided by 10 creditors) therefore Argos will certainly agree DMP and the debt will be cleared in 1yrs 8mth. However Barclaycard on the other hand £13,000 debt monthly minimum payments £350.00. Under DMP Barclaycard will receive £55.00 (15.7%).

Will the monthly payments be split equally or will CCCS apportion them in relation to the size of the debt?

Thank you in anticipation ad all the support you have given to date.

Regards

RAS

No

Say you have £100 per month?

You owe one creditor £8000 and the other is owed £2000.

So the first creditor gets £80 per month and the smaller one gets £20 per month.

Make sense?

true27

Hi Mikon,

CCCS pro-rata your payment so each individual creditor is sent a proportional amount of your £550. The calulation is:-

Individual debt x surplus per month ÷ total owed = individual offer

Hope that helps!

mikon

Thank you to both of you.