DMP & Mutual Support Thread - Part 11

GrinC

Also - what does F&F stand for please?

sourcrates

GrinC wrote: »

Hello there - I hope no-one minds me posting?


I just wanted some advice and many of you are so helpful. I'm currently in a DMP with PayPlan since July 2014 and am due to be debt free (according to them ) by April 2018. However, I'm wondering if it's a good idea to take on the plan myself and pay directly to the companies I owe? Some of the payments have been passed on to debt collection agencies.


I just feel that I could be making bigger payments to get the smaller debts written off and smaller payments to the big debts until the smaller debts are paid off then I can increase payments when the smaller debts are paid off (hope that makes sense!!?).


Not all creditors have stopped interest and I don't feel like I'm making any headway.


The only thing I am nervous of is the 'protection' of being managed and the repayment agreements on the DMP have been accepted by the creditors.


Anyone have any thoughts?

GrinC wrote: »

Also - what does F&F stand for please?

Hi,

You have no more or less protection being in a managed DMP, or a self managed one.

If payplan can negotiate deals with your creditors, so can you, your arrangement is not regulated, it's informal, so it's what you make it.

Most people who start off in a managed DMP end up going it alone, just for the freedom it gives you.

F & F means full and final, as in full and final settlement of a debt.

GrinC

sourcrates wrote: »

Hi,

You have no more or less protection being in a managed DMP, or a self managed one.

If payplan can negotiate deals with your creditors, so can you, your arrangement is not regulated, it's informal, so it's what you make it.

Most people who start off in a managed DMP end up going it alone, just for the freedom it gives you.

F & F means full and final, as in full and final settlement of a debt.

Thanks so much for your advice - it really is giving me the encouragement to take stock of it myself and get fully in control. For the first time ever, I feel so much better not living on credit and I know I wont go down that route again.


As for F&F's - that is interesting. Can I offer to settle debts even if I've not completely paid them off? e.g. there's a few companies that added charges and interest when I was in difficulty but I never had them refunded so can I offer to pay them £65 instead of the full £105 I owe? Or is that not how it works and it only kicks in when the payments schedule is coming to an end?

sourcrates

GrinC wrote: »

Thanks so much for your advice - it really is giving me the encouragement to take stock of it myself and get fully in control. For the first time ever, I feel so much better not living on credit and I know I wont go down that route again.


As for F&F's - that is interesting. Can I offer to settle debts even if I've not completely paid them off? e.g. there's a few companies that added charges and interest when I was in difficulty but I never had them refunded so can I offer to pay them £65 instead of the full £105 I owe? Or is that not how it works and it only kicks in when the payments schedule is coming to an end?

You can make settlement offers when ever you like.

You can do two things to lessen the amount you pay.

Complain about the charges added to your account, in writing, ask for a refund.

When that's done, then make an offer to settle the outstanding balance for whatever you can Agee on.

Just because your on a DMP does not mean the usual complaints procedures are not open to you.

January2015

GrinC wrote: »

Also - what does F&F stand for please?

As Sourcrates says, F&F stands for full and final settlement offers. However, it's a bit of a misnomer - it should really be called Partial and Final settlement offers.

If you are making full and final settlment, that would indicate you are paying the full balance owed to settle and close an account.

In reality, what people on this forum do is make offers below the balance(s) owed on account(s). Often there is a bit of back and forth negotiating to reach an agreed discounted figure. Then the creditor(s) or debt collection agency (DCA) need to put in writing the amount offered will settle the debt in full and you (the debtor) will be released from any future liability for the balance of the debt from either the creditor, DCA, or any other party that in future tries to collect the debt. So, really people on this forum are making Partial and Final settlement offers.

sourcrates

January2015 wrote: »

As Sourcrates says, F&F stands for full and final settlement offers. However, it's a bit of a misnomer - it should really be called Partial and Final settlement offers.

If you are making full and final settlment, that would indicate you are paying the full balance owed to settle and close an account.

In reality, what people on this forum do is make offers below the balance(s) owed on account(s). Often there is a bit of back and forth negotiating to reach an agreed discounted figure. Then the creditor(s) or debt collection agency (DCA) need to put in writing the amount offered will settle the debt in full and you (the debtor) will be released from any future liability for the balance of the debt from either the creditor, DCA, or any other party that in future tries to collect the debt. So, really people on this forum are making Partial and Final settlement offers.

Should really get that changed as it does cause no end of confusion amongst folk.

GrinC

Thanks so much sourcrates and January2015. I'm so blinkin relieved reading this, I want to cry!


I'm going to give it a go!!

January2015

GrinC wrote: »

Thanks so much sourcrates and January2015. I'm so blinkin relieved reading this, I want to cry!


I'm going to give it a go!!

Do as Sourcrates says and chase refunds of interest and charges since you started your DMP. We had to do this with Barclaycard - a battle, but we got there

Mulder83

I have been on a DMP since the end of 2013, I was stupid and took out loans and credit cards until it snowballed. It was one of the worst experiences knowing that I couldn't pay my debts and at the time only just started paying my Car finance. I was totaling almost 25k of debt with 10k of that in unsecured payday loans, store accounts and credit cards.


So 4 years on, my Car finance finishes in September because it was secured against the car I've been paying £230 for the last 5 years, the Greatest New Years Present I get was from Ladder Loans writing off £1000 of my debt and closing the account. my total outstanding DMP is around £4k!!! my original plan was set to finish around 2020 however because of ladder loans writing off £1k It could be sooner maybe next year.


Also Step Change have been great and very understanding if there was money problems.


At the time I was rock bottom now looking back the light at the end of the tunnel can be seen.

sourcrates

Welcome to the MSE forums Mulder 83 !!

Any hints or tips you can provide to anyone just starting out on there DMP journey, feel free to post them.

Well done on your progress so far.