Borrowing Money While Making Token Payments

DNW_2

My car insurance is coming up for renewal and my mum has offered to pay it in full seeing as though I probably can no longer get/certainly don't want to continue to pay for it monthly via the insurance co finance rates.

I already declared the monthly payment on my SOA to CCCS, but now I'll actually be making the payment directly back to my mum rather than the insurance co (I've not enough cash to pay it any other way).

I've only just started the whole debtfree/future DMP process and have just made my second token payments to creditors, will borrowing this money be frowned up or in anyway create problems?

I am only paying what I would've paid anyway, but I'm doing it an interest free way to a family member instead. Hopefully this will also then allow me to save enough cash to pay it in full myself when it comes around again next year.

Opinions please, and thanks

poppyjay

Do u have to have a car ? Is it for work or is there a good transport link where you are .
Is there anyway you could make some spare cash just to pay this back to your mum so it does not have to go on your DMP (please don't shoot me down if this I's not allowed)
Is there anyway you could help your mum out so you don't have to pay it back I'n cash .

Tixy

Hi

I would think this would be absolutely fine. As you say its just another way of paying your insurance monthly, which is already a cost in your expenditure sheet.

Sparklyfairy

I think it's fine to borrow the money from your mom as they (car insurance companies) will most definitely not allow you to pay via installments...and you need to have it inorder to drive. I do my own dmp, but get advice from either Payplan or CCCS & I believe since you're at the start of your dmp, you probably don't have any emergency savings for this as yet. Just ensure that you do pay your mum back monthly & start that emergency savings that you will surely need to draw upon in the future. Hth, SF

pip10

Just thought i'd reply as i am making token payments to creditors and have been doing this for around 2/3 months. My car insurance is included on the budget which i sent to them. My renewal came through and was really high so i used the comparison sites and have taken insurance out on deposit/monthly installments with no problem.