DMP Advice

alona1

Hiya,
I'm debating what to do with my DMP, my mortgage has just recently dropped onto a tracker so my payments have reduced and I want to throw the extra money into my DMP while interest rates are low.

Which is the best way to go about it - ring up and make an extra payment say every 3 months?

Or save for the next 12 months (assuming mortgage doesn't rise drastically) and offer them that as the full and final settlement? approx £6k maybe (hopefully more)?

I owe approx £15k on my DMP and I currently pay them £250 per month.

Thanks guys

JES_F1

Hello :wave:

I think the general view and recommendation is to save up any spare money and then offer full and final settlements.

I recall reading on here that if you 'randomly' make additional payments - say, every couple of months or so - creditors can get twitchy and think you can afford more each month.

I'm sure others will be along shortly with something more definitive!

alona1

bump, can you help?

BEAT_THE_DEBT

I would save it and just carry on with dmp.x

Pott5y

Yep me too.

Carry on DMP as you are and save the money then use it for F & Fs in the future.

The more you give to your creditors the more they will want to take.

alona1

Thanks guys!

alona1

Also, what do you think would be accepted as F&F?

ie. Currently outstanding £15k- if I'm able to pay in 12 months time, balance should be approx £12k. Do you think £6k would be accepted?

I have been in my plan since August 2008 if that info is needed?

Pott5y

All depends upon who the debt is with and how long you have been paying your DMP vs how long it would take to clear the balance.

Here is a rough guide:

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

It is always worth going in as low as you feel comfortable in the first instance as you can always raise your offer. There is loads of info here and a great letter template too http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers