Quick DMP question?

safeashouses

If we go ahead with the DMP from CCCS and my husband gets a bonus or any overtime, can we pay it off quicker? Ie - could we pay a lump sum in does anyone know?

CLAPTON

yes you can, but it might be better to save it up for a bit and make sure you wont need it.
remember once you enter a DMP you will have all your debts defaulted and your credit record trashed. you will not be able to get credit for along time. so you need to consider what you would do if your CH broke, a tile fell off the roof, the car needed major repair, washing m/c needs replacement etc.

easypeasy_2

Yes, like the previous poster said you can. We have one with the CCCS and they suggested we built up a "slush" fund, so if washing machine packed up or whatever we could fund a new one. So you could build up a fund and then anything over that you can pay off your DMP, you just make the extra payment to them, it will reduce your term which is a good thing !

safeashouses

Thanks - that was what I wanted to hear

And is it right (was reading another thread) that our credit rating would be shot for 6 years AFTER the debt was paid off? Our credit rating is crap anyway, but if it takes 8 years to pay off our debt, does that mean it will take 14 years to restore our credit rating?

We only have an interest free mortgage you see and my husband is 45 so am thinking future mortgage options....

Donedoingdebt

The defaults will stay on your file for 6 years from date of default.
The way you have conducted your account for the last 36 months will stay on file for a further 6 years after account is paid up.
Your account will be marked as "Settled" or "Partially Settled" OR "Satisfied" or "Partially Satisfied" depending on which CRA report you're reading. This will also stay on for 6 years from date of settlement. (Partial settlement means that you've come to an agreement with your creditor to pay less than the original amount owed, whereas settled means you've paid in full which probably looks better to any future prospective Lender).
CCJs will also stay on file usually for 6 years from CCJ date.

safeashouses

Donedoingdebt wrote:

The defaults will stay on your file for 6 years from date of default.
The way you have conducted your account for the last 36 months will stay on file for a further 6 years after account is paid up.
Your account will be marked as "Settled" or "Partially Settled" OR "Satisfied" or "Partially Satisfied" depending on which CRA report you're reading. This will also stay on for 6 years from date of settlement. (Partial settlement means that you've come to an agreement with your creditor to pay less than the original amount owed, whereas settled means you've paid in full which probably looks better to any future prospective Lender).
CCJs will also stay on file usually for 6 years from CCJ date.

Agh I am sorry, I am so confused! So if we do a DMP that pays off over 8 years... how long after the 8 years will our credit rating be poor? Another 6 years?

safeashouses

Sorry - just bumping this - can anyone clarify?

JoJo_Sparkly

Sorry can't offer help on that - but I did discuss paying off extra whilst on DMP and spoke to CCCS. The advice I was given was to be very careful about paying off more. If you can pay off all of a debt that is great - but if you pay off some then Creditors are well within their rights to re-intstate any frozen interest charges etc and expect higher payments monthly from then on. Came as a real shock to me as I was hoping to chip away at my debts a little at a time by making a few extra payments here and there. Now I'm stashing the cash into a savings account called Target Debt and when I hit the golden number I shall pay off one creditor completely and then move on to the next - Only problem with this method is making sure that I don't weaken and use the money for other things!

Hope that helps

Jojo

safeashouses

JoJo_Sparkly wrote:

Sorry can't offer help on that - but I did discuss paying off extra whilst on DMP and spoke to CCCS. The advice I was given was to be very careful about paying off more. If you can pay off all of a debt that is great - but if you pay off some then Creditors are well within their rights to re-intstate any frozen interest charges etc and expect higher payments monthly from then on. Came as a real shock to me as I was hoping to chip away at my debts a little at a time by making a few extra payments here and there. Now I'm stashing the cash into a savings account called Target Debt and when I hit the golden number I shall pay off one creditor completely and then move on to the next - Only problem with this method is making sure that I don't weaken and use the money for other things!

Hope that helps

Jojo

Thanks Jojo - so do CCCS keep you informed as to what has been paid where and what is still owing to each creditor? So you can save and make a one off payment if possible? So sorry if I sound really stupid, I'm so confused!

safeashouses

Also, if I have an agreed overdraft, can I keep it, or do I have to include thta in the DMP?

spud30

safeashouses wrote:

Also, if I have an agreed overdraft, can I keep it, or do I have to include thta in the DMP?

I included mine in my DMP.

Just a word of warning, as soon as my bank heard we were having money problems, they cut my agreed overdraft by £1500 and gave me 3 weeks to pay it back.