A question about Payplan?

lancashiregirl

Hello I do hope someone can help me as I'm a little confused.

Payplan are setting up a DMP for me, I have debts of around £15,000. I was referred to them by the National Debtline and I was under the impression this was a free service.

I've just had a call from Payplan which I didn't entirely understand so I've asked them to send me paperwork to read over.

They mentioned two options called 'Cover my payments'
One was covering my payments if anything happens to me by continuing to pay the my creditors until the debt is repaid and the other involves them releasing a lump sum of £20,000 to try to settle the debts in case of my death. I'm not sure what this will cost me.

I'm really puzzled. Does anyone know if this is dodgy?
Many thanks if you can help.

Bettingmad

lancashiregirl wrote: »

Hello I do hope someone can help me as I'm a little confused.

Payplan are setting up a DMP for me, I have debts of around £15,000. I was referred to them by the National Debtline and I was under the impression this was a free service.

I've just had a call from Payplan which I didn't entirely understand so I've asked them to send me paperwork to read over.

They mentioned two options called 'Cover my payments'
One was covering my payments if anything happens to me by continuing to pay the my creditors until the debt is repaid and the other involves them releasing a lump sum of £20,000 to try to settle the debts in case of my death. I'm not sure what this will cost me.

I'm really puzzled. Does anyone know if this is dodgy?
Many thanks if you can help.

Not dodgy at all, they are a free service however they will try to sell you various insurances which you have been offered. There is no obligation to purchase if you don't want to. Tell them your not interested, it will no way effect your DMP if you choose not to take their insurances.

Bettingmad

Little bit of advice, be realistic with your budgets for various items such as food, clothing etc. from what I have read the problems with DMP's come from those who have not allowed themselves a realistic figure for expenses. have a look at the National Debtline as they provide guidance figures of what you are allowed.

living_to_regret_it

from my experiences with payplan, they are very helpful and sympathetic. they will, however, try to sell you insurances etc, which are not always the cheapest option.

if you say you are not interested, they accept it and it has no impact whatsoever on your dmp

lancashiregirl

Thank you very much all for the replies. My mind is eased somewhat now. Would you recommend taking out either of the insurances? I remembered last night that the one with the lump sum is 6% of what I have left for creditors goes to Payplan.

I assume my children (16 and 20) would be liable for any debt in the event of my death? I own my home, no mortgage so I guess they could raise some money via that or do you think insurance would be better?

Which would you go for if any?

Thanks again.

Bettingmad

It is impossible to advise someone else, forget the payment protection to cover your monthly payments. If your income drops so does your payment to your creditors. You will have to weigh up the life insurance lump sum payment yourself I'm afraid, personally I haven't bothered. Sorry I can't assist further on is matter. What I would say is that as with anything if you feel you need life insurance shop around.

newlifeahead

It does really depend on how you feel. You don't have to have it and you can add or cancel it at anytime.

I had the Cover my life option which was £5 a month. At the time I had very young children and no other insurance. My debt was also bigger than my outstanding mortgage and I didn't want them to be left with my debt if anything happend to me.

I cancelled it yesterday with no problems at all. I still have debt but a lot smaller than when I first started, and I no longer need it now.

MrsTUS

Please accept my apologies, I didn't realise I was giving out incorrect advice, I thought it was correct to the best of my knowledge - which apparently wasn't very accurate. I wasn't purposefully attempting to mislead. Good luck with your decision.

Bettingmad

MrsTUS wrote: »

Please accept my apologies, I didn't realise I was giving out incorrect advice, I thought it was correct to the best of my knowledge - which apparently wasn't very accurate. I wasn't purposefully attempting to mislead. Good luck with your decision.

MrsTUS you appear to have posted this on the wrong topic, the one your reply relates to is..

https://forums.moneysavingexpert.com/discussion/3446305