Killing off the little debts...

dads_albums

Hello,

We've got a few creditors who've dipped below the £100 mark and we're debating trying to get rid of them early by being a bit more(!) frugal and saving up to knock them off our plan.

Our DMP is with Payplan and they've advised us that, yes, we can do this, but we have to let them know where we got the funds from to pay this off.

How much proof do you have to provide to say that you got the cash from a specific source?
Will doing this make the other creditors think "oh, they can afford to pay a bit more" and start sharpening the knives again?

Who would have thought that trying to get out of debt more quickly would be such a minefield?!

happy_bunny_2

Are they still charging interest?

If not, just put it in a savings account.

No point in upsetting the apple cart...

dads_albums

I've had an update from Payplan.

Basically it's the linked accounts (i.e. everything that belongs to RBS or Barclays Group for example) that I need to worry about, because otherwise they can't directly be told that I've paid off an unconnected creditor, it's just that the amount that they receive will increase. I'm thinking a way of "muddying the waters" is do it at the same time as the annual review so it's fudged by the small annual payment increase.

Sound like a plan?

happy_bunny_2

Sounds sensible

dads_albums

happy_bunny wrote: »

Sounds sensible

That in order to free yourself from penury, you have to become a liar when the banks are such honest organis...oh wait...hmm...oh dear

misterbarlow

been thinking the same... we have next and argos accounts both below £400 now where most of our other debts are like £8-10k, they only get about £10pm where the others get around £60pm, and was thinking of doing some overtime or having a lean few months and paying them off, but was wondering what the others would say about it...