DMP review advice

DFW2015

Hi everyone,


This is my first post on these forums but I have spent the last couple of years reading your posts and it's given me lots of encouragement knowing that there are so many other people out there in a similar position to myself facing up to their debts, so thank you all for that.


I started a DMP with PayPlan in Dec 2011, I have two creditors, Barclays (they've been great) and Lloyds (not so good, but frozen interest eventually) I owed £24,500 and I'm now down to around £18,000 of debt.


The results from my last budget (Dec 2013) showed I was capable of making £237.26/month payments to my DMP.


I'm due another sort of "interim" review next month, which from past experience, this isn't like the annual review I have in December and as been along the lines of a quick chat or an email from PayPlan asking if anything's changed and how am I coping with the payments.


Well, my situation has changed, for the better, and I'm wondering what to do.


I've had a £100/month pay rise and My wife changed jobs and now earns £570/month more, I did a quick budget and it says I can afford to pay around £900/month to my DMP, which is great I know, but I'm thinking my creditors will then want interest payments too.


I am fully committed to repaying my debt and regardless of what I pay from May onwards I will be debt free in April 2015 as the recent changes to the pension laws mean I will be in a position to make an offer to my creditors next April, when going off what I pay now my debt then will be around £15,000, if I up my payment to £900 it will be around £4,000 less whatever may get added in interest.


So, anyone? I know the rights and wrongs here, but does anyone know if interest will be added to my debt if I increase my payments and are my creditors less likely to accept a reduced full and final statement offer next April if I'm paying £900/month of my debt?

sourcrates

Its good your earning more, but I personally would not pay £900 a month to a DMP, I would save the extra cash, then in time, make full and final offers to your creditors, otherwise as you say, they may want interest starting again if they know you have all this extra income coming in.