Hoping to end DMP

Debtfreee

Hi,

Due to two recent changes in circumstances I should be able to increase the amount of my DMP payment to an amount that is more than the original contractual payments of my loans!

First change is a decent payrise and the second is moving in with my girlfriend which should reduce my outgoings.

I know that in the next couple of months my tax code will change due to the payrise and some other benefit changes at work so I don't want to leave or amend the DMP until this has happened as the last thing I want to do is commit myself to increased payments and then not be able to meet them. *

*N.B it was an adverse change in circumstances that got me in this horrible horrible mess (circa £45k of debt!)

My plan is that I save as much as I can between now and the date that my tax code is sorted out and then rebudget with CCCS and determine that I can actually come off the DMP and start paying the contractual payments plus I could use the savings (minus a small emergency fund) to pay off some of the smaller loans and then increase the payments to the larger loans by these amounts.

Is this viable?

Should I use the savings to pay off everyone fairly as a one off through the DMP before taking back the payments myself?

I always fully intended to repay the debts hence the DMP not IVA or Bankrupcy and don't want to start annoying all the creditors now by making the wrong choice.

It is also worth nothing that some of the creditors were more than happy to suspend interest whereas others (Cahoot) hiked it up, I'm hoping to renegotiate this when I start paying the original amounts again.

I'm really grateful to the CCCS for their help over the past 3-4 years and hope to be debt free in 4 years time so still a long way to go but at least I can see the wood for the trees..... oh and I have decided that I will NEVER take on any loans or credit cards again - if I can't buy it outright I'm going to go without, if nothing else this mess that I (with my ex girlfriends help) got myself into has taught me a massive life lesson!

You all seem like nice people on here from the threads that I've read and obviously understand exactly where I am coming from!

Thanks in advance of your help.

DF

DarkConvict

Honestly i would go with the route of paying your DMP the same amount of money and build up a stack of savings, then go and make F&F offers. It could be a quicker way to pay off the debt - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

If you are in a DMP you will have a shot credit file already so there is not much point in coming out of it.

Debtfreee

Thanks for the reply so quickly.

Wouldn't I have to increase the payments anyway rather than build up savings by disclosing my reduced outgoings and increased salary to CCCS?

DarkConvict

It is something to discuss with CCCS as it would be a change in circumstances. As you have already commented if you put the payments up then they need to drop again it is annoying as creditors kick up a fuss.

You do need to tell your DMP provider what is happening and they will let you know what they allow and what they recommend you do.