Leaving DMP - Help needed

TakingControl

Hello :wave:

I have been since November 2009 in a DMP with creditors being MBNA, Capital 1 and BarclayCard.

My mum kindly gave me a lump sum and I offered all creditors a full and final but only MBNA accepted and as off yesterday, this is paid leaving me with the 2 creditors.

I still have a chunk of the lump sum and will pay off some of the outstanding balance one one card and then I will be in a position to make the normal contractual payments again and hopefully as such start rebuilding my credit file.

I have a couple of questions really and hope someone can help?

Capital 1 did default me and I owe the biggest amount to them. Interest rates if I would go back onto the contractual agreement is 21% per annum. My BarclayCard is 24.9% per annum and is the smaller amount however my account wasn't defaulted, in fact it has only a marker of payment arrangement and is in status satisfied on the credit report. Should I pay off the balance on the barclaycard and a little extra on capital one or would you try and clear the capital one balance first seeing that this is the worse of the two with regards to my credit file?

The other thing, do I just write to the creditors advising that I have financially stabilized and will leave the DMP and start paying minimum + extra each month again? If so, has anyone got a template letter?

Thank you

winner12

Cant you hang onto the money and try a F&f again in another few months and keep paying you DMP

TakingControl

winner12 wrote: »

Cant you hang onto the money and try a F&f again in another few months and keep paying you DMP

Based on my SOA I did for myself I am able to pay the minimum monthly contractual payment and a little extra on both so I don't think a DMP is still valid? I always thought it is on good faith on both sides and should my circumstances change, I am bound to advise my creditors?

winner12

Its an informal agreement are you self managed or with a debt management company

TakingControl

winner12 wrote: »

Its an informal agreement are you self managed or with a debt management company

I am with a fee charging debt management company (letter of termination will be send as soon as I have figured out what I need to do).

winner12

Not fully knowledgeable on this one then
Bumping up so someone can advise you

TakingControl

winner12 wrote: »

Not fully knowledgeable on this one then
Bumping up so someone can advise you

Thanks. Anyone else got any advise? My next DMP payment is due to be taken by DFH on the 28th Feb and I really would like to sort this before then?:)

TakingControl

Morning. I was hoping someone could give me a little advise?

Jinx

Whatever you decide to do you should get rid of the fee charging DMP company. Use Payplan or CCCS or do it yourself.

If it was me, I would pay it to Barclaycard. The reason being Ive done my own DMP for years and Barclaycard were the last to default me - in fact they only did it a couple of years ago which means it will be on my credit record for 4 years after I finished paying it off!! So if you can avoid a default I think Id go with that.

HTH
Jinx

TakingControl

Thanks Jinx. I actually want to stop the DMP all together as my SOA shows (and I have monitored it like a hawk) that I am no longer in the dire situation that I was in just over a year ago. I used the 'what does it cost' calculator here and funny thing is, if I pay Barclays off and just pay Capital One with interest of 21%, it costs the same each month in total as if I would pay off a chunk of Capital One and none of the barclaycard

Jinx

TakingControl wrote: »

Thanks Jinx. I actually want to stop the DMP all together as my SOA shows (and I have monitored it like a hawk) that I am no longer in the dire situation that I was in just over a year ago. I used the 'what does it cost' calculator here and funny thing is, if I pay Barclays off and just pay Capital One with interest of 21%, it costs the same each month in total as if I would pay off a chunk of Capital One and none of the barclaycard

Then I think you have your answer :j I think sometimes we all need a break from compound interest to let us get back on our feet...

Roll on being debt free.....:T