DMP set up but I can now clear all my debts - quick question!

missgstar26

Hi guys

I recently set up a dmp with StepChange (such helpful people). Everything is ready to start on 1 June 2013.

At the weekend I finally spoke to my parents about my debts after keeping them to myself for many years. I also told them about the plan that I had set up with StepChange.

To my surprise, my parents have offered to pay off all my debt which is as follows:

Wonga: 1423
Payday express: 645
Pounds to pocket: 635
Swift sterling: 749
Quickquid: 480

Hsbc cc:6400
Santander cc: 5113
Mbna cc: 2770
Barclaycard: 495

So that's approx 18.5k

StepChange have already made contact with my creditors. Do I contact the creditors to let them know that I want to clear the debts? I'm waiting for my parents cheque to clear, so I'm looking to pay next week.

Will they add charges if I say I'm no longer in the dmp? This is especially for the pay day loans, which are due end of this week/beginning of next week.

Thanks in advance!!!!!

harrys_dad

Others on here may have more informed advice, but if you are setting up a DMP they may be prepared to consider a "full and final" settlement, which could be less than the total owed. If you just paid the lot off in full I doubt there would be any charges, but would be worth getting that in writing. Why not ask StepChange.

One other point, make sure you spend within your means in the future, and that means nothing on credit, to make the most of your parents' generosity.

beth3735

Yes just contact your creditors and pay them, but you would need to do this asap or at least cancel the Stepchange Direct Debit and tell them you no longer need their service, otherwise they will take it from you.

I agree with Harrys Dad about really spending within your means. I had my husband bail me out of around £7k worth of debt years ago, because he did this I felt no hardship from my mad spending and ended up back in £18.5k worth of debt again. This hurt my husband and frustrated him, and this time I had no help at all from him

Really glad your parents are there to help you and I wish you all the debt free luck for the future

RAS

Please let stepchange know what is happening tonight (their lines are still open). That prevents a lot of work to no effect.

missgstar26

Thanks everyone.

I definitely do appreciate what my parents are doing for me. I think they were very concerned about the long term effect on my credit rating even after I would have finished the dmp.

I plan to pay them what I would have paid on my dmp going forward. I have definitely learned that I need to be honest and open, and the hard way that my family really do love me, and are willing to help me where they can.

matttye

missgstar26 wrote: »

Thanks everyone.

I definitely do appreciate what my parents are doing for me. I think they were very concerned about the long term effect on my credit rating even after I would have finished the dmp.

I plan to pay them what I would have paid on my dmp going forward. I have definitely learned that I need to be honest and open, and the hard way that my family really do love me, and are willing to help me where they can.

If you've already defaulted on some/all of those debts, it's unlikely that your credit rating would get any worse now anyway. Defaults will stay for six years regardless of whether they're paid immediately or paid through a DMP.

Really great parents though!! Must be a big weight off your mind