DMP & Mutual Support Thread - Part 8

Allypops

Kirsty, If you don't already have a contingency fund built up, I'd stash it. Once you have a bit of a back up fund going you can make overpayments with any other windfalls (or save towards settlements). In the meantime I would keep it in reserve for unforseen emergencies and redo the budget (and increase monthly DMP payment) once your pay rise materialises. It will be increases that you make in the regular monthly payments that signiificantly reduce the term for you (in your case a tenner a month increase will probably bring your DFD forward by over 18 months, £20 a month increase bringing DFD about 3 years closer). I'd stash the £100 and wait for the pay rises.

Allypops

AmyV_2

sickasachip13 wrote: »

Hey Biggles,

BTW, there's a thread around here somewhere that's called something like 'Help with full and finals'. It's got a lot of useful info on it.
SAAC

I've not managed to find this F&F help thread yet, but would be very interested if anyone could point me in the right direction.

Thanks!

rcpbiggles

sickasachip13 wrote: »

Hey Biggles,

Sorry to hear about the divorce but it seems like every cloud has a silver lining in this case! The % that creditors settle for differs tremendously and all sorts of things come into play. For old debts that are now with a DCA, a lot of folk around here would say go in lower than 25%. For debts that are still with the original company, 25% might be a good starting point. How long have your accounts been in arrears? Who are they with?

BTW, there's a thread around here somewhere that's called something like 'Help with full and finals'. It's got a lot of useful info on it. I recently did two F&Fs for my smallest debts and I'm on a DMP with CCCS (I was a year in when I did the F&Fs), both creditors settled for just over 40% of what was owed.

SAAC

Thank you very much SAAC - off to find that thread :-)

rcpbiggles

AmyV wrote: »

I've not managed to find this F&F help thread yet, but would be very interested if anyone could point me in the right direction.

Thanks!

I can't find it either!

sickasachip13

Hmmm, I didn't dream it but maybe I'ver mis-remembered the title. I'll find it....

rcpbiggles

https://forums.moneysavingexpert.com/discussion/115430

Found it by good old Google!!!
I find these forums a bit of a maze

sickasachip13

https://forums.moneysavingexpert.com/discussion/115430

Just bumped it for those interested. I detail the process I went through there, which worked for us. Just be aware that the start of the thread is really old now, but the later stages should have really useful info for those looking at F&F potential.

sickasachip13

KirstyO wrote: »

Quick question...just started on a DMP with CCCS, and have sold a load of stuff on ebay. When all the sales and things have been processed and the money has cleared, I'm hoping to have £100 towards my debt relief. Do I stash it? Or can I overpay CCCS directly? I'm just aware that as my monthly payments are a measly £44 to them, it's going to take over 7 years to clear off what is to most around here a tiny debt (less than 4k). My pay packet should get slightly bigger over the next month or so as I'm climbing ladders at work (not literally), so I assume when I declare this to them the payments might go up a bit, but still, if I'm allowed to overpay and reduce my term....it's a no brainer to me!

I agree with Allypops - stash it somewhere safe and make it the start of your emergency fund. I think CCCS would probably advise the same - they did when I sold my car for just a couple of hundred quid.

nicrobx4

Another quick question to those in the no!
Our DMP is set up the first payment goes out on the tenth :0)
Both my children are adults that live at home, they are not aware of our DMP.
My question is, will it affect them in any way, for example, apply for back account, mortgages, credit cards etc ...
We obviously don't advocate debt especially because of the mess we are in, but if they do need anything does our debt history affect them.
Cheers
Nik

sickasachip13

Hi Nicro,

I don't know all the legal ins and outs but, from my limited knowledge, the defaults accrued during a DMP will be 'attached' to the actual individual lender only. So unless you have joint accounts with your kids, joint loans etc etc, they shouldn't be. There are some people around that have DMPs without their partners knowing, when they have no combined financial interests.

SAAC