extra payments on a DMP

flossieflipflop

Hey,

I've been in a dmp for 3 years now and having started with £18,000 of debt I have managed to bring it down to about £10,500. When I joined the dmp I was told it would take about 7 years to clear my debt so I should have 4 years left.

I want to clear my debts faster but am unable to commit a higher monthly payment. However, some months I do have extra money and some months my husband is able to do some overtime which gives us a bit of a surplus. I'd like to put this towards the debts.

Would I be able to send extra payments, via cheques direct to my creditors as and when we have the extra cash as it would not be regular months or regular amounts. Or would this jeopordise the arranged dmp?

Thanks for any thoughts

Flossie

Hannah_10

Just thinking why not save it for a reduced full and final offer right towards the end of the DMP? There will come a point where what you have saved and what you owe are roughly the same, that's a good point to try if with a reduced F&F.

flossieflipflop

Thanks Hannah, I did consider this but I worry that if I save it, it will eventually get eaten into (I'm terrible in that if I have money I spend it) so would rather send it straight to creditors so I can't touch it!

Angyles

Is your DMP being managed for you? I have just started a DMP with CCCS and I asked them this question as I am sometimes able to work overtime, they said if I have more money one month that I want to put to my DMP to give them a call and they will request the extra with my direct debit and distribute it for me. I guess you will need to speak to whoever manages your DMP.

DarkConvict

The only problem with extra payments can be if creditors see it go up, they expect it again. They don't seem to handle well with one offs, they don't see it as a bonus payment but a regular thing.

Holding onto the money for F&F offers is better. Open a separate savings account, maybe even an ISA is best and keep it tucked in there. Atleast been separate you know you must not spend the money, if it lies in a current account it will just get chewed up.

flossieflipflop

thanks for the thoughts, I was a bit worried about whether they would want it every month, especially as my biggest creditor is Lloyds who have been total pains in the a**e ever since I got into debt.

I guess if I look for a savings account that is one you can't draw money out of for a set period or without 3 months notice that would stop me getting my spending mitts on it!

Hannah_10

flossieflipflop wrote: »

Thanks Hannah, I did consider this but I worry that if I save it, it will eventually get eaten into (I'm terrible in that if I have money I spend it) so would rather send it straight to creditors so I can't touch it!

Give your Mum/Sister/lifelong mate the bank book and atm card for the account so you have to explain yourself to that person before you can get access to the cash?

You can then do online bank to bank transfers fairly easy as and when you ahve leftovers. Best to have the savings account at a different bank and not set online banking up on it though because you would only be tempted to transfer money out of it. You don't need online banking enabled to transfer money into it though.