DMP and irregular salary

dottyanne

spud30 wrote:

I'm with CCCS, and asked Wonder_Girl's advice a while ago.

She said if I receive any extra money, to save it towards paying one debt in full. If you are able to pay one creditor off in full, it will benefit the rest, because they will automatically get more each month once one debt is gone.

Obviously, if the extra money will be received every month, you need to increase your regular payment accordingly.

Hope this helps.

Hi All

S[ud, i'm not sure if this is allowed? On my DMP I have 10 debts, 1 really large which is the bulk of my debt, 2 slightly smaller and the rest under £500. It would be great for me if i could try to save and startpaying extra towards the smaller ones too but i didnt think that was allowed? can some-one clarify the position for me - by the way im with the CCCS?

thanks in advance

dotty x

spud30

Hi Dotty

As I understand things, all regular payments are shared equally between creditors.

If you manage to save a sum, or come into money and it is enough to pay a debt in full, that's what you should do.

If you send the extra to CCCS to be shared out, you could leave yourself open to questions from creditors - how come you can pay extra this month, and not every month etc etc.

Hopefully WG will be along and settle this one

milliejon

Can anyone offer any more advice on this please?

Wonder_Girl

You SOA should only be based upon the wage you can rely upon, if you get a bonus, do overtime get commission etc the extra money should be put aside and saved up until either

1) you have enough to clear off your smallest (or smallest interest charging) account as this will benefit all of your creditors in the long run or

2) paid into your DMP once every 6 or 12 months. The reasons for this is the creditors are not that bright, they can cope with one off larger payments but can not cope with a budget that changes every five minutes.

Lump sums - If you get a lump sum and want to replace your car etc this is entirely up to you and how you can justify it to yourself and to your creditors, if you can justify that this spend will reduce monthly outgoings and increase your DMP payment then that’s fine, if you need new double glazing cos your house is freezing that’s fine, but if you go on holiday then be prepared for the creditors to fight back. Legally how you spend this money is up to you, but if you do something the creditors dislike and you then have to justify the use of it in court the judgement may go against you if the court thinks you were being frivolous.

Re seeing wage slips – the creditors have no automatic right to demand to see your wage slips. However they also have no legal responsibility to stop charging you interest or accept reduced payments. At the end of the day if they feel you are hiding money from them they will get a CCJ and demand the court see this information, the court DO have a right to look at your wage slips and into your saving etc.

dottyanne wrote:

Hi All

S[ud, i'm not sure if this is allowed? On my DMP I have 10 debts, 1 really large which is the bulk of my debt, 2 slightly smaller and the rest under £500. It would be great for me if i could try to save and startpaying extra towards the smaller ones too but i didnt think that was allowed? can some-one clarify the position for me - by the way im with the CCCS?

thanks in advance

dotty x

You CAN pay of a debt in FULL
You can NOT pay a bit extra on the side to your creditors.

Anything else just ask

WG xxx

milliejon

Thank you Wonder Girl - that's really helpful. At least now I know how to justify the extra money showing on my wage slips to my creditors if I need to.

Zulu_Dawn

Hi WG

Its great to hear from you.

I hope you don't mind if I ask you a question or two

My goal with my DMP has been to eliminate interest as this seems to be in the best interest of all my creditors. Thus due to the approach of different creditors, I have not ended up with equal pro-rate monthly payments. (e.g. MBNA refused to freeze interest unless I agreed a higher monthly repayment) Is this wrong?

I have not been able to readily find new bank accounts that meet my professional needs (i.e a debit card for business trips). I have thus excluded my current bank account, credit card and loan from my DMP negotiations. Will I get found out?

At what point will I be able to offer full and final settlements? I met all my minimum payments until four months ago. Since then I have paid an amount I can afford each month as I have negotiated my DMP.

My current mortgage deal with Abbey finishes in February, from when I revert to a standard rate mortgage. My credit rating is clearly now rubbish. If I negotiate a new mortgage deal, will they automatically check my credit record and is a poor credit record likely to affect the deal they offer me? Do you think I would be better off just accepting the higher rate mortgage to avoid too close an investigation. There is plenty of equity in my house and I have never missed a mortgage payment?

I would be really grateful for any help.

Thanks,

ZD

dottyanne

Zulu_Dawn wrote:

Hi WG


My current mortgage deal with Abbey finishes in February, from when I revert to a standard rate mortgage. My credit rating is clearly now rubbish. If I negotiate a new mortgage deal, will they automatically check my credit record and is a poor credit record likely to affect the deal they offer me? Do you think I would be better off just accepting the higher rate mortgage to avoid too close an investigation. There is plenty of equity in my house and I have never missed a mortgage payment?

I would be really grateful for any help.

Thanks,

ZD

Hi - our mortgage is with Abbey too and our credit rating is zilch! i think we may be stuck with their standard repayment mortgage im afraid!

dotty x

Zulu_Dawn

Oh Dotty I hope you are not right. The difference for me is £400 per month!!!!!!!!!

Wonder_Girl

Zulu_Dawn wrote:

Hi WG

Its great to hear from you.

I hope you don't mind if I ask you a question or two

My goal with my DMP has been to eliminate interest as this seems to be in the best interest of all my creditors. Thus due to the approach of different creditors, I have not ended up with equal pro-rate monthly payments. (e.g. MBNA refused to freeze interest unless I agreed a higher monthly repayment) Is this wrong?

I have not been able to readily find new bank accounts that meet my professional needs (i.e a debit card for business trips). I have thus excluded my current bank account, credit card and loan from my DMP negotiations. Will I get found out?

At what point will I be able to offer full and final settlements? I met all my minimum payments until four months ago. Since then I have paid an amount I can afford each month as I have negotiated my DMP.

My current mortgage deal with Abbey finishes in February, from when I revert to a standard rate mortgage. My credit rating is clearly now rubbish. If I negotiate a new mortgage deal, will they automatically check my credit record and is a poor credit record likely to affect the deal they offer me? Do you think I would be better off just accepting the higher rate mortgage to avoid too close an investigation. There is plenty of equity in my house and I have never missed a mortgage payment?

I would be really grateful for any help.

Thanks,

ZD

Hiya Zulu Dawn,

Don’t mind questions at all

You are running your own DMP right?

Ideally all of your creditors should be treated fairly and if one of your other creditors notices MBNA are getting a better deal they might kick up a fuss, however I understand why you would do this as MBNA can be a bit full on, however make it clear to them if they ask for another rise that they are already getting the most and won’t be getting any more.

Natwest Step account a solo card as does the Co-op cashminder account. Again by not including them in your DMP you are showing preferential treatment to one creditor which can cause the other creditors to kick up a fuss. Are you looking at your DMP being short term (6-12 months) or a long erm solution? If short term you may get away with it, if long term you are being unfair and your creditors may decide to retaliate.

You can offer full and final settlement at any time so long as you have the money available to pay it.

I honestly don’t know much about mortgages I’m afraid, you are going to have to ask somebody else. I do however know that a lot of the time your existing lender will offer you the best deal and although they may do a credit check they will have your payment history to hand and then to pay more attention to how good you have been at paying, if not then there is a very good independent company I know of that does mortgages for people in your position, however I don’t want to post them here in case I am breaking the advertising terms so if you want a company name/phone number PM me,

WG xx

Sultana

Our mortgage is with Abbey and a few years ago our discount finished 2 months after OH lost his job. We called and implied that we were considering looking around for a better deal (as if anyone would have given us one at that point) and the discount was extended on the spot. If they checked our credit record they were pretty quick about it, they certainly didn't ask about income.