Is it a good idea to settle smaller debt when getting an DMP arranged?

sjsindebt

I'm going to get a DMP arranged by PayPlan. There are a couple of smaller debts (Capital One 500pound and Vanquis Bank 750pound). The Cap One is with Westcott now and they offered me to settle the account for 483pound. I told them that I might be able to make a payment of 200pound on my payday. They told me to call them after I get paid.

Now is it going to be a good idea to call them at the end of the month and haggle to settle the account for 200?

[Deleted User]

You need to look to settle all of your accounts, with or without PayPlan. So if you can manage to put a few debts to bed before you start the DMP, why not? I'd ensure that they are taking payment in full and final settlement though and ensure that you get the best price.

Don't forget going with PayPlan does not mean that the interest and charges will be stopped, so if you can clear things before that point it's always a good option.

Remember to look at priority payments as well, no point paying debt to leave things like rent and secured debt unpaid.

HTH - Quiet response unusual!

sjsindebt

assj wrote: »

You need to look to settle all of your accounts, with or without PayPlan. So if you can manage to put a few debts to bed before you start the DMP, why not? I'd ensure that they are taking payment in full and final settlement though and ensure that you get the best price.

Don't forget going with PayPlan does not mean that the interest and charges will be stopped, so if you can clear things before that point it's always a good option.

Remember to look at priority payments as well, no point paying debt to leave things like rent and secured debt unpaid.

HTH - Quiet response unusual!

Thanks for your reply. So I'm going to have a chat with Westcott. Do you think 200quid for a debt which originally was 500 is an agreeable amount from their side? Although the original amount was 500, they added another 500 on top of that as charges and fines.

[Deleted User]

I don't know to be honest, look at some of the full and final threads on here, I have seen people offer much less, I don't know if you can start at a really silly price like £50 and then just work up, I'd like to see you get it for less though if you can...

sjsindebt

assj wrote: »

I don't know to be honest, look at some of the full and final threads on here, I have seen people offer much less, I don't know if you can start at a really silly price like £50 and then just work up, I'd like to see you get it for less though if you can...

Do you mind to point me to some of those threads please? I searched for them but can't seem to find any.

[Deleted User]

Ok there are often loads on this site, I think the followin link seems to be a good one to show you what people have done or are doing;

https://forums.moneysavingexpert.com/discussion/3927001

P.S - I had to google this one as I couldn't find them either

sjsindebt

assj wrote: »

Ok there are often loads on this site, I think the followin link seems to be a good one to show you what people have done or are doing;

https://forums.moneysavingexpert.com/discussion/3927001

P.S - I had to google this one as I couldn't find them either

Thanks a lot for the link. I'm gonna start at 15% and try to settle within 20%. Let's see how it goes.

[Deleted User]

Yes good idea, do come back and update your thread, someone just like you may find it useful.

I'd also like to know how you get on, although I have never done this it would be good to know should anything happen in the future.

Having said that I tried to do it with EDF Energy just last week! Don't think they will go with it though as I am a current customer :-/

sjsindebt

Sure I will keep MSE updated. Now I need to find some money which I will offer to them.

Another quick question: after I start a DMP, is it still possible to haggle with the creditors to get a F&F of lower amount?

As an example: one of the debts are for Capital One credit card which is now with Westcot. The original amount is £500 + charges/fees of another £500. The DMP will start very soon which is arranged by PP. By my understanding if I start paying through DMP, I'll have to make a total payment of £1000 (over the next 2-3 years along with other debts).

Now if I haggle with Westcot to get a F&F of lower amount (lets say £200), I won't have to pay £1000 (or £500 is PP can make them drop the charges).

So, I'm wondering after a DMP starts, can I bypass/involve DMP provider to negotiate with a creditor to get a F&F of lower amount?

I hope I'm making sense.