In a DMP & about to come into some money.

Moustacheman

I am currently about a year into a Debt Management Plan which I arrange all by myself with my creditors. At the start of my DMP i was £26,000 in debt. Now I feel alot happier that I have agreed reduced payments with my creditors and I can actually see that balances coming down(slowly) and I am not paying extortianate interest rates on the debts.


Anyway to cut a long story short, I am going to be coming into some money in the next few weeks due to me reclaiming my old bank charges. Approximately £1000 will be wingimng its way to me.

Can anyone give advice on what the best thing to with the £1000.

Do I divide it up equally and give all of my creditors a bit each?

Do I pay it all to one creditor and clear the balance of one of my debts?

I have also heard that some creditors will accept a % of the balance to write the debt off completely? Is this correct? If I offer them £1000 are they likely to write the rest of the debt off?

Any advice that you can give would be helpful.

Thanks

Moustacheman

thefoolonthehill

i had an old debt with sky which went to a collector. when i spoke to them the lady asked me to make them an offer which i did just over half what i owed - they accepted.

obviously i cant guarentee that they will accept an offer but unless you try you never know

laughing_cow

If you could pay off one debt, either in total, or a reduced amount as thefoolonthehill suggests, it would be a nice boost to get rid of one of the debts.

Otherwise, if it was me, I would pay half towards the debts. The other £500 I'd put in a high interest savings account for genuine emergencies as it's always nice to know you've got something there for when you really need it. (Actually, I'd probably swipe £20 out of there for a new lipstick or a takeaway before putting it away in the savings account, but that's just me )

Donedoingdebt

If you are accepted for a reduced payment offer, it may only be recorded as "partially settled" on your credit file rather than "Settled". This will then continue being shown for 6 years.