Can I do this on a dmp?

flossieflipflop

Hi

quick question; I'm on a dmp and have been for 4 years. Some months we have a bit of spare cash but not always so I don't want to increase our monthly dmp payments but does anyone know if I am able to send any spare cash we have (if and when we have it) direct to my creditors to help clear debts.

Does this break the dmp agreement?
Would I send it just to their postal address?
Would I have to send it prorata or could I just send it to one?

Thanks for any help

Tixy

Hi

To send it to just one would break the terms of your DMP. And if your creditors do keep getting extra bits of cash they might start to pressure for getting more all the time.
In this situation most people either choose to save it up and make an extra payment to the DMP once a year/twice a year (which the DMP company split between your creditors), or some choose to save it up to both act as an emergency fund and also to hopefully build up enough to offer reduced F&F settlement offers to creditors eventually.

flossieflipflop

Thanks, I guess that makes sense. I think we'll try and save and offer F and F at the end of a year of saving! That might also motivate us to save as much as we can so we can see an end to the debts!

Chrisblue1962

Thanks flossieflipflop and Tixy

I was just starting to think of doing the same i.e. start saving for a F & F, which may take about 7 - 10 years but it's a positive thing to work for. I've noticed you can get as much 4- 5% interest on some savings accounts if you save regularly each month, some as little as £1.00 !