Questions DMP & Advise Please

heyshunt

Hi All,

On a DMP with GP at the moment (6 months in). Pay £90 per month. I owe a large amount of money and this is all i can afford. In 3-4 months my mortgage rate decreases by 4% and my girlfriend is looking at moving in.

I should have about £600-£700 per month spare.

I have 5/6 debtors each owing a range from £1k - £17k.

Can i approach each debtor and pay one off at at time? Without this doing anything to my arrangements with my other debtors / GP?

I really want to pay off all my debts and i know it will take a few years but i would rather do this than an IVA

help/advise would be appreciated...

Tks,

Grumpelstiltskin

By GP I assume you mean Gregory Pennington?

If so ditch them NOW, there is no need to pay anyone to run a DMP,

Please read this.

https://forums.moneysavingexpert.com/discussion/2077631


You can then either go with one of the charities that don't charge you a monthly fee or you can run your own DMP.

heyshunt

Hi Grumpel,

GP yes them.. I really did need them, was at an all time low. I fully understand the system now and if i knew then what i know now i would of completed my own DMP.

But if i remove GP and cntinue paying the debtors the amounts agreed - can i pay off more to debtors to get the smaller amounts cleared?

Grumpelstiltskin

You are suposed in a DMP to pay them proportunatly, but if you do it yourself you can use the snowball method ie. pay most to the ones with the highest interest rate rates and work down them that way or if you have a number of small amounts and you would feel better with paying those off then as long as you can continue to pay at least the minimum on the others and you can clear the small ones quickly you can do that.

All of the creditors are going to want at least the amount they have been receiving from G P but as you won't be paying their monthly fee you will have that extra amount to distribute.

rising_from_the_ashes

Please phone one of the debt charities (CCCS / Payplan) - contact details at the top of the board.

There is no need to pay someone to run a DMP for you - the charities can arrange it all for you and that £90 could be going towards your debts each month.