Stepchange balances and final payments

dangerpowers

Hi all,


I've searched hard on the forums for a few answers and cant find them.


My Stepchange DMP has been running for 3 years now and is due to be paid off next August, I just had a few questions.


1. I have 5 separate balances, my issue is that one of my balances will be paid off next month but others will take 7-8 months more, Do I have to notify Stepchange about this or will the balances just disappear and more money be available from my regular payment to my larger balances?
(This was actually my largest balance but has paid off at a much faster rate than the others for some reason)


2. When my total debt gets to a point where I can pay a final lump sum am I allowed to do this or do I have to wait until August and let the amounts pay off automatically?

I'm just worried that my payments may disappear into thin air.


Many thanks,


Dan

debtfreeby50

Hi Dan,

Its probably best to speak with Stepchange direct, I would imagine that once the larger debt clears your fund will be re-allocated and spread across the remaining debts. You should clarify this with Stepchange though.

If you only have another 10 months to go perhaps you could look at trying some full and final settlements, you might be able to pay all your outstanding balances alot quicker than you think,

I'm new ish here, but am sure others will point you to templates etc and offer more/better advice.

sourcrates

Hi,
What you have is an informal arrangement, so you are "allowed" to do pretty much what you want, I would assume when the lowest debt is repaid, SC will reallocate your payment to your other debts.

If you have a lump sum in the future, you can negotiate separately with your creditors to see if they will accept full and final offers.

If accepted, you simply inform stepchange and cancel your agreement with them.

crazy_cat_lady

They do just reallocate - just make sure your balances with them are up to date. I had one that was paid off very quickly, then the spare money went to the other debts. I didn't have to do anything other than my reviews, and making sure that my balances were accurate and correct.