Reducing DMP payment - successful?

ynnub

Hi,

I've just come across this forum and thought I would ask if anyone here has successfully reduced their monthly payment to their DMP?

I managed to squirrel away some money which I was hoping to use as settlement payments but I have had to use this money for paying my DMP.

Although paying, I am struggling to meet the current payment and it would be easier if I could reduce the amount by say between £60-80 per month.

I've only ever increased payments so obviously they have all been fine with that but what are they usually like when you have to reduce the payment?

Does anyone have experience of this?

Many thanks in advance

Stewart_78

Yes, I've done it several times. Now on £1 per month per creditor. Nobody ever complained as long as you send in the budget.

Earthmother_2

Can I ask Stewart, are you with Stepchange or similar or do you manage your own? We are currently with Stepchange and they have been great, but at times make me feel like a naughty schoolgirl if we disagree on how much money we need (and I am sensible).

National_Debtline

ynnub wrote: »

Hi,

I've just come across this forum and thought I would ask if anyone here has successfully reduced their monthly payment to their DMP?

I managed to squirrel away some money which I was hoping to use as settlement payments but I have had to use this money for paying my DMP.

Although paying, I am struggling to meet the current payment and it would be easier if I could reduce the amount by say between £60-80 per month.

I've only ever increased payments so obviously they have all been fine with that but what are they usually like when you have to reduce the payment?

Does anyone have experience of this?

Many thanks in advance

Hi ynnub

When you say "they", are you referring to your creditors or to the debt management company itself?

Either way, if you're finding it difficult to maintain your current repayments you must take action now. Complete an up to date budget and send it to your creditors so that they can see exactly why you're having to lower your offers. You need to dictate this to them, rather than waiting for them to say "Yes". Lots of people on repayment plans have to renegotiate at some point, as very rarely will one's circumstances remain unchanged throughout.

Secondly, if you are paying any sort of fee for debt management, you are wasting money which could be used to reduce the debts more quickly.

Regards

Dennis @NDL

sourcrates

Agree entirely with the above, you need to be pro-active, you decide how much you can pay, not them, do a new budget as suggested and only pay what you can comfortably afford too, you have to be the one in control, not the other way round.

ynnub

Thank you Dennis for your input.

When I refer to 'they' I suppose I mean both, as I say I have only ever increased the payments before so of course both the debt charity and the creditors have been fine about that because it all gets paid off quicker. I have no experience of reducing the payment so don't know how either would be about it.

I realise that I can only pay them what I can afford to but will they not be 'but you were paying xxx' but if I am as you suggest the one in control of it then I hope that all will be okay with it. I don't want them to come down on me like a ton of bricks because I can't stick to the current payment amount. I hope that once I have more of an income I could increase it again.

@ Earthmother, have you managed to reduce payments without any problems?

sourcrates

ynnub wrote: »

Thank you Dennis for your input.

When I refer to 'they' I suppose I mean both, as I say I have only ever increased the payments before so of course both the debt charity and the creditors have been fine about that because it all gets paid off quicker. I have no experience of reducing the payment so don't know how either would be about it.

I realise that I can only pay them what I can afford to but will they not be 'but you were paying xxx' but if I am as you suggest the one in control of it then I hope that all will be okay with it. I don't want them to come down on me like a ton of bricks because I can't stick to the current payment amount. I hope that once I have more of an income I could increase it again.

@ Earthmother, have you managed to reduce payments without any problems?

Its really simple, you just do a new budget, which shows how much you have left to pay creditors with, whatever that figure is, then just submit copies to your creditors, they cant have what you don't have can they ? you just need to show why your payments have gone down, for instance, your car insurance has risen £30 a month or you need more money for petrol, or whatever it is.

Earthmother_2

I had to argue my case for my the bits on my budget, but had to let it go.. For example I have 3 dogs and they allow me to budget £30 each month to feed and insure. The food bill comes to that, but there is no way it would cover insurance, so now my pets are unprotected. I am about to have to redo again, due to DH's job being restructured at work and his salary is taking a nose dive. I am wondering if this is the time to go it alone with our DMP. I am in my 3rd year with Stepchange and fell a bit more confident than when I was starting out.

sourcrates

This is the thing that annoys me about lenders whose customers are in a DMP, a DMP is an informal arrangement, and lenders are not obliged to accept what they are offering, but would be stupid not to, as most folk pay what they can afford, costs go up, fact !! creditors know this, you just have to show why your costs have gone up, and you need to be fairly robust with these people as they will try to get you to increase rather than decrease payments.

Stewart_78

Earthmother wrote: »

Can I ask Stewart, are you with Stepchange or similar or do you manage your own? We are currently with Stepchange and they have been great, but at times make me feel like a naughty schoolgirl if we disagree on how much money we need (and I am sensible).

I did it through Payplan. Just updated my budget and emailed my account manager to say I was going to be short for a good while until I can up my income again.

debtfreeby50

I've been with CCCS/Stepchange for 5 years now and have never had a problem with reducing payments. I find they are always very friendly and helpful and you can also update the budget online and submit it, they'll then get back to you with any queries. When we started we were paying £456/month but had to reduce that very quickly to just £78/month following a redundancy.
Provided you have all your facts and figures to hand you should be fine