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payments on dmp

started dmp in oct 2009.was £25000 now down to £17500.due to some ppi and charges claims.my question is i am making reduced payments now and interest is frozen.i have cleared some of my creditors .what happens if i clear some more and am able to meet normal payments again do they start charging interest again ,or do i just stay on the dmp thanks for any help in advance.

Comments

  • Well the interest is only stopped if you are in financial difficulty, so if you can meet the standard payments then yes I interest would be charged again
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  • Faye449
    Faye449 Posts: 173 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    well I'm not expert by any means but can you save the money you would use to make the normal repayments and start offering full and finals??
  • stebiz
    stebiz Posts: 6,592 Forumite
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    Faye449 wrote: »
    well I'm not expert by any means but can you save the money you would use to make the normal repayments and start offering full and finals??

    Not quite. The whole idea of these DMP's is to treat all creditors the same. Offering to pay one off, in preference to others, would put the whole plan at risk.

    Personally I would just stash the cash. The interest is frozen. You are on a plan!!!
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  • Faye449
    Faye449 Posts: 173 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    stebiz wrote: »
    Not quite. The whole idea of these DMP's is to treat all creditors the same. Offering to pay one off, in preference to others, would put the whole plan at risk.

    Personally I would just stash the cash. The interest is frozen. You are on a plan!!!

    Well thats totally thrown me as the CCCS have advised me to do that?!
  • DarkConvict
    DarkConvict Posts: 6,347 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Faye449 wrote: »
    Well thats totally thrown me as the CCCS have advised me to do that?!

    Welcome to the fun of informal agreements (DMPs). Some will say F&F is a good idea, others will say it is not as it is giving preference and not all funds are been put in the DMP.

    Personally i would do F&F offers, preference or not they got get a proportion of the debt value in return so i think it balances it out, early payment but not full amount.
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