Debt Management Plan

navboy

Hi entered into a DMP in 2009 following my divorce. In the next few months I will be able to pay off all the creditors in full. Am I better off repaying all the creditors at once or drip feeding it and pay off each one over a few months??
Has anyone done this??

andy1886

I don't know the answer but my feeling is pay all together because if you have x pounds available under the fairness way a dmp should be run this amount should be paid pro rata to all your creditors . If you decide to pay creditor A off in full but nothing to B and C this isnot how a dmp should be run . I would wait until you can pay them all off together , congratulations on achieving this hopefully I will reach this stage in december 2014 .:j

Time_to_face_the_music

navboy wrote: »

Hi entered into a DMP in 2009 following my divorce. In the next few months I will be able to pay off all the creditors in full. Am I better off repaying all the creditors at once or drip feeding it and pay off each one over a few months??
Has anyone done this??

Hi navboy

Am a tad confused here as in your other post

https://forums.moneysavingexpert.com/discussion/3945229

you said you needed a loan to pay off your debts included in your DMP, is this correct? Or do you mean a private loan from family or friends?

If you mean a bank loan, I don't understand the point of getting a loan to pay off debt that is managed currently in your DMP and am not sure you would even be able to get a loan. Have any of your creditors defaulted you?

Am sure someone else will be along soon to offer more advice but good luck with your plans