Student loan company getting bulk of DMP

Gaia2014

Hi

I've got a DMP with Step Change. My biggest monthly payment goes to the student loan company because my balance with them is highest. The debt will be paid off within 2 years at the current rate. However, by my calculation money owed to debt collection agencies will take longer.

In all honesty I would rather tackle the debt collection agencies first because I'm actually paying more to SLC on the DMP than I was before and they are not hassling me! The only positive aspect I can think of is that the interest on the SLC balance will be less because the debt will be paid off faster.

So I guess it comes down the fact that emotionally I would prefer to get rid of the mainstream debts first and manage the SLC balance myself. I'm not sure what to do. Obviously I'll be guided by Step Change, but it seems daft to throw money at the student loan company when it feels like a more respectable debt. Any thoughts appreciated before I contact Step Change? Thanks.

seanavfc92

Gaia2014 wrote: »

Hi

I've got a DMP with Step Change. My biggest monthly payment goes to the student loan company because my balance with them is highest. The debt will be paid off within 2 years at the current rate. However, by my calculation money owed to debt collection agencies will take longer.

In all honesty I would rather tackle the debt collection agencies first because I'm actually paying more to SLC on the DMP than I was before and they are not hassling me! The only positive aspect I can think of is that the interest on the SLC balance will be less because the debt will be paid off faster.

So I guess it comes down the fact that emotionally I would prefer to get rid of the mainstream debts first and manage the SLC balance myself. I'm not sure what to do. Obviously I'll be guided by Step Change, but it seems daft to throw money at the student loan company when it feels like a more respectable debt. Any thoughts appreciated before I contact Step Change? Thanks.

You tend to find that those who shout loudest are owed the least amount of money.

Your repayment offers are based on the contractual payments of each debt. Chances are, SLC will have had the highest contractual payment compared to the rest of the creditors.

My advice would be to keep it as it is. If any of the collections agencies has the hump about it, they'd let SC know.

Gaia2014

Thanks for the reply.

I guess I'd just prefer to clear the other debts first (to be free of the debt collection agencies, creditors etc)... I think it would boost my morale knowing that finally they are off my back (it's been far too long)... I'm worn down by it all and although it's largely my own fault it's stopping me getting on with my life... I won't bore you with the details here. But, it's making me feel depressed knowing that if I hadn't got into this debt I could have a house and a family by now!
It's not too late, but I feel like they debts have been with me as long as I can remember. The student loan debt doesn't have the same negative associations... hence my preference to pay them last. The other aspect is that the student loan company haven't frozen interest to my knowledge. So I probably will take longer paying them back than the DMP suggests.... Bah!!!!

seanavfc92

All of your creditors are non priorities. They have to be treated equally.

If any of your creditors saw that you were making extra contributions separate to the pro-rata payments through the plan, they would see this as preferential treatment, making them more likely to reject any repayment offer.

As easy as it is for me to say, don't worry too much. Stick at it!