Increase DMP or save for settlement?

LizD_2

At the moment I'm debating wether to try and increase my monthly DMP payment or save it and attempt to offer a lump sum as settlement to my creditors at a future date. I currently have £4450 to pay off. Not accounting for ongoing interest, my DFD is May 2016, but of course this changes depending on interest. Not really sure what is the best option.

Sazzie23

Hi Liz

Sorry I'm not really qualified to help you. If no one replies here, try posting in the DMP support thread.

Good luck, sounds like things are going ok.

matttye

If you save up settlement offers, you should wait until you can make an offer to all of your creditors at the same time, as favouring one over another can affect your DMP.

You will probably be debt free sooner if you save up F&F offers, but progress will *seem* slower than if you paid more into your DMP.

Stewart_78

I would save. I have come to the conclusion that it's better to pay as little as you can get away with and save up for settlement. The more you pay each month, the less likely they are to settle and also they may start adding charges etc.

I'm not sure if you need to pay them all at once. Plenty of people on here seem to make offers as they can afford them, paying off the smallest debts first etc. I don't believe that these banks are as joined up as we think. Your debts have gone in the 'bad' folder and they are trying to get back as much as they can. I doubt they devote a lot of time to monitoring you or your other debts, it's just not worth it for them.