Any advise when on DMP

chambo70

It has been advised I post this here -
Hi - I am currently 3 yrs into my debt management plan and thinking of surrendering / trading an endownment policy I have. The endownment no longer is attached to my mortgage but I would like to put the money into maybe an ISA. What I don't know though is if because of the DMP i am bond to declare the lump sum and it would be taken off me. If this was the case would it be worth surrendering at all - would be better off leaving were it is for a few more years. Any body know where I would stand?

eyeopener2

Personally i'd use it all to pay the debt off an start from scratch.

A little more info though.

How much do you still owe on the DMP and how much are you likely to get for the endowment?

chambo70

Thanks for the reply. The endownment is only a small one from my first flat. The settlement figure from the endownment would be around £12,000 at the moment. When I got married and moved house I changed to a completely repayment only mortgage. The settlement I would get would not pay off the debts in full although I I suppose it could reduce the number of creditors if I targeted the lower debts.

Tixy

A DMP isn't legally binding - there is no legal requirement that you'd have to pay off your debts with that money (or with all of that money).

How much longer is your DMP predicted to last? How much do you owe on the DMP now?
You might well find you could get your creditors (or some of them) to accept reduce full & final settlements on the debts.

If you are with a free DMP provider (charities or payplan) then you could consider making F&F offers through them. If you are with a fee charging DMP provider then do not do F&Fs through them, you'll get better offers dealing with your creditors directly (as the DMP company will cream money off the money you pay them).
If you consider doing full & final settlements read the national debtline website factsheet on the topic first.