Dmp

tomandjerry

Hello,

I have been on a DMP for the past 5 or so years and like everybody want to be debt free as soon as possible. I have enough money to pay off 1 creditor, but I don't think I am allowed. I never undestood why. How would other creditors find out about this?

Mort

Payplan told me that it was best to treat all creditors equally so when I had a lump sum to pay it was split up amongst them on a pro rata basis. The theory being that treating them equally keeps them all happy.

If you cleared one debt and that payment was to be paid to the others they might wonder where the extra money was coming from, until the next annual review shows one less creditor.

sickasachip13

Hi T&J

Who is your DMP with? I know CCCS now have a F&F team. But, I have done F&Fs on my two smallest amounts owed, with CCCS's knowledge. My situation might be slightly different as I have a lot of creditors - 19 when we started - with a small group of them with quite small amounts owed, which meant it took only a paltry amount of money to clear them - so small that none of the bigger players would be interested in the amounts.

SAAC

BlushingRose

I'd ring the DMP provider and see what they said, if it were me.

Deep_In_Debt

I'm with CCCS and have made f&f settlements along the way with individual creditors. CCCS were fine with this as it means that your remaining creditors will get more money as the money you were paying towards the debt you cleared is being redistributed...so the other creditors get more every month...every one's happy!

I'm not very good at explaining things so I hope that made sense.

tomandjerry

Thank you all for your input it's greatly appreciated. It's all makes perfect sense. One of my creditors has already been cleared by dmp payments, but still appears on the list only with 0 balance. I am with CCCS and my review is coming up so I have plenty to ask.

Mort, how long did it take you to clear your debt? If you paid it all off in 5 years that is very inspiring. Any tip??? I could have been debt free sometime next year or so, only I had to decrease the monthly payments for a while and some of the creditors punished me by increasing the interest as they were not able to accept the reduced payment. So debt is even higher and for longer.

tomandjerry

Just a random question: When you are on DMP can you still claim bankruptcy if you cannot pay the creditors agreed amount?

Heffi1

I would speak to your DMP company and they can advise about bankruptcy, if this is the best option for you they can talk you through all of the options.

Mort

tomandjerry wrote: »

Mort, how long did it take you to clear your debt? If you paid it all off in 5 years that is very inspiring. Any tip???

• It was a case of facing up to a lifetime of bad spending habits and overcoming them.
• Main one being working to a strict budget, worked out by Payplan.
• Mrs Mort lost her job towards the end of the DMP, after a lengthy spell of unpaid sick leave, and received a lump sum which was equivalent to about 5 months DMP payments, pre MSE me would have blown the lot. We used some for a holiday and the majority went towards the debt.
• All the way through I took the opportunity to work any and all overtime that was up for grabs - not an option for everyone but the general principle is grab any extra income that you can.
• It was five and a half years or approximately 2003 days.

Lensman_2

tomandjerry wrote: »

Just a random question: When you are on DMP can you still claim bankruptcy if you cannot pay the creditors agreed amount?

Not sure about an IVA - I think they have to fail first.

But for all other debt management arrangements and plans you can go for bankruptcy at any time.

You will need to tell the judge that you have had advice from a debt professional (a charity is fine) and that bankruptcy was advised.

If you are thinking about BR then please read some diaries on the following forum:
http://forums.moneysavingexpert.com/forumdisplay.php?f=136
Bankruptcy really is the last resort and seeing what other people go through is a good way to understand what the implications are and what a big step it is to take.

Lastly - please seek advice from a debt charity.

tomandjerry

UF!!!!! Well done! Did you pay an extra sum often (or whenever possible) or you started with high repayments? I did started well, but later I couldn't afford the repayment sum so had to reduce it. I cannot wait for DFD!