Making overpayments on a DMP

Legacy_user

Hi guys

Thanks to loads of tips here and a bit of help from my Mum this week I should have a bout £800 to pay towards my debts on top of my minimum DMP payment. Do I just go ahead and make the overpayment, or could this lead to questions about how I can afford this large sum all of a sudden?

Thanks for any thoughts!

DarkConvict

How much extra do you have, is £800 the total payment or the extra figure?

I would personally do an F&F offer instead of overpay, family member has offered to help pay off one debt so i am making this F&F offer etc. - Tag that into the template - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers

gonzo127 wrote: »

well here is a ROUGH guide on what companies have been known to accept,

please remember some people get lower amounts other have to pay much more than this,

these things depend on so many variables including what side of the bed the person in the company got out off

anyways rough guide is below

Debt still with original creditor NO default = 90% or more
Debt with original creditor but with a default = 75% or more
Debt with 'in house' debt collectors of the original creditor = 60% or more
Debt with external debt collector however still property of original credit = 40% or more
Debt owned(purchased) by external debt collectors = 25% or more

Otherwise just ring your DMP provider and let them know, probably just make an extra payment.

System

Thanks Dark Convict


My overall debt is £15000 with several creditors. Is it really likely that I can make £800 work that way? I thought you have to be seen to treat each creditor fairly? so in effect I only have £160 per creditor . . . or could I make a F&F payment to each creditor?

Sorry if this is all old hat to everyone else!

Deep_In_Debt

i'd suggest not making over payments. This could open a can of worms with creditors as they will expect the extra payment every month and wonder where you've suddenly got the extra money from and think you have access to it every month.

I'd suggest using the money to make F&F's on a smaller debt and reducing your debts that way.

System

Thanks both

So would this be safe to discuss with Payplan?

Or would this let the cat out of the bag?

Deep_In_Debt

Safe to discuss with Payplan but they would probably want to negotiate a F&F on your behalf...you'll get a much better deal if you negotiate yourself. You don't even have to tell them...just do it and tell them after.

Check out the National Debtline website...they have lots of advice on how to do it and template letters you can use. Make sure you keep everything in writing.

System

Thanks

I'll try and take a look. I tend to get overwrought whenever I think about the debt and it's not helpful.

T