Paying off a debt while on DMP?

Younganddumb

Hi,
I am on a debt managment plan and have been since November. Included in my debts is a £200 overpayment from Student Finance England (this was over £1500 but have been paying for a while beforehand).
I have an interview next week for a Foundation Degree starting in September which I would need to get funding through SFE for and I remember reading on my original letter something to the effect that money that I owed would be taken into consideration if/when applying for SFE again.
I was just wondering would it be possible for me to pay off this debt given the possibly that I won't be able to do the course IF this is the "consideration" or would that muck up the whole DMP? As my Grandma has offered to pay it off for me if it means me getting onto this course.
Further to that, which should've been my first question really. Will me applying for a student loan have any effect on my DMP or vice versa? Will they be likely to say no because of that?

Just to clarify; this is a work based foundation degree so it'll have no effect on my income as I will still be working full time.

Many thanks.
Kirsty

mrschappers

That should be no problem

Pay it off and just tell who is dealing with your dmp to take it off the creditor list, therefore all other creditors will get a new increased off pro gratia so win win all round.

I know ppl will say to treat all creditors the same, but have you thought of if you could do any full and final settlements to the others. The process will be the same as above; 1 creditor taken off dmp equals more to offer the others within your set amount per month

Younganddumb

mrschappers wrote: »

That should be no problem

Pay it off and just tell who is dealing with your dmp to take it off the creditor list, therefore all other creditors will get a new increased off pro gratia so win win all round.

I know ppl will say to treat all creditors the same, but have you thought of if you could do any full and final settlements to the others. The process will be the same as above; 1 creditor taken off dmp equals more to offer the others within your set amount per month

Thank you for your reply!
I was under the impression I wasn't allowed to do full and final settlements if I was part of a plan so if I can that is great!

I work my full time job plus I have a couple of other zero hours contract jobs and if I need to cover my supervisor if they're not in I get a higher hourly rate anyway so when I did my DMP I gave them a "minimum wage" for the month and I had asked them if on months where I did get paid more than usual (this can be nothing extra which has been the case for the last two months but most recently I got £450 extra) but they never actually got back to me about it.

So seriously thank you so much, now I know I'll try and save up enough for more F&Fs.. Hopefully be clear much sooner than September 2018! You've made my night!

sourcrates

Younganddumb wrote: »

Thank you for your reply!
I was under the impression I wasn't allowed to do full and final settlements if I was part of a plan so if I can that is great!
!

You can do pretty much what you like, a DMP is not a regulated agreement, it's an informal arrangement between you and your creditors, if you want to repay one or more accounts, that's up to you.

Hope your DMP is not with a company you pay to provide this service ?

Younganddumb

Fab! Yes my DMP is with Stepchange so not paying any fees.

I feel so much more positive already! Motivated me enough to be up until 2am last night writing complaints to my various payday lenders :rotfl: Now the waiting begins!

whattodo1967

mrschappers wrote: »

That should be no problem

Pay it off and just tell who is dealing with your dmp to take it off the creditor list, therefore all other creditors will get a new increased off pro gratia so win win all round.

I know ppl will say to treat all creditors the same, but have you thought of if you could do any full and final settlements to the others. The process will be the same as above; 1 creditor taken off dmp equals more to offer the others within your set amount per month

Hi is this right as I thought you had to treat them all the same, some months I get overtime which I don't disclose to DMP just put in my emergency fund. I have 1 debt that is only £120 and would love to pay it off, can I do without penalty from Step change? thanks in advance

National_Debtline

whattodo1967 wrote: »

Hi is this right as I thought you had to treat them all the same, some months I get overtime which I don't disclose to DMP just put in my emergency fund. I have 1 debt that is only £120 and would love to pay it off, can I do without penalty from Step change? thanks in advance

Hi whattodo


Normally I would agree about giving all creditors equal treatment. In this particular case, however, the OP seems to have good reason for treating the Student Finance England debt as a "priority", given that it might otherwise limit his access to further education funding. Still a good idea for them to run the plan by the debt management charity first, though.


As for making lump sum offers to the remaining creditors, I would definitely advise approaching them all at the same time and offering to spread out any lump sum on a pro-rata basis. It is then up to individual creditors whether to accept the "share" on offer to them.


Dennis
@natdebtline

whattodo1967

National_Debtline wrote: »

Hi whattodo


Normally I would agree about giving all creditors equal treatment. In this particular case, however, the OP seems to have good reason for treating the Student Finance England debt as a "priority", given that it might otherwise limit his access to further education funding. Still a good idea for them to run the plan by the debt management charity first, though.


As for making lump sum offers to the remaining creditors, I would definitely advise approaching them all at the same time and offering to spread out any lump sum on a pro-rata basis. It is then up to individual creditors whether to accept the "share" on offer to them.


Dennis
@natdebtline

Hi Dennis
I think I will continue saving and hopefully be able to offer all my creditors a full and final at some point in the future, just thought I could pay some of the smaller ones off without it affecting my DMP. Thank you