Overpayments whilst on dmp

secretdebt

Hi

I am in the position whereby I can start to make some overpayments whilst on my dmp.

I have a loan and a credit card with halifax. The problem is that halifax have automatically taken off my plan for the credit card as they said I can meet the minimum payment (even though it is higher than my current proposed payment to them).

Anyway, so my question is, if I were to start overpaying the credit card (they are now charging me interest), would they look at the fact I can overpay it and deactivate the loan interest?

Or should I overpay my barclaycard? Or should I save the overpayment amount and wait until I can pay everything off? I'm determined to pay it all off, but not sure if overpaying will affect my dmp or not?

Thanks

whattodo1967

Hi I was overpaying 1 of my creditors only by £10 per month, and SC found out about it and said they would cancel the dmp, so I had to stop, as I didn't want it to effect our dmp. I am sure there are others on here that do overpay and maybe they can advise. I am also in a position to do the same, but am worried to do so. Good luck whatever you decide to do.

National_Debtline

Hi there,


It is important to treat all of your debts fairly. A DMP should pro rata the money you give them amongst your debts so they all get a proportional offer. If you then start to overpay one debt only this is known as a preference payment. If your creditors were to find out that one debt is receiving more money they may refuse to negotiate with you and/or be more aggressive in taking court action.

Make sure you are using a free DMP provider and talk to them about the fact that the Halifax want you to maintain the minimum payments to the credit card even though you cannot afford the minimum payments on the loan - this doesn't sound quite right. Good luck,


Laura
@natdebtline

another_casualty

Mmm, interesting . With Payplan , you can overpay .
As times are always tough, I would keep the dmp you already have and leave it as is . You could keep the spare cash you have for emergency funds or something .
Eventually , you may be able to make a settlement offer in the future .
That's my opinion
Others should be along with good advice soon. Good luck

dumpyboy

When I went self manage d m p I over paided some for a while, but saved and took some of offers of full and final settlements , then overpaid others after that some went back to normal accounts and charged interest , people say you should treat them all the same but they never treated me the same so I did not lose sleep over that the best thing I did was going self mangled

whattodo1967

I would like to go self managed as I could overpay the smaller ones until they are gone then the next ones, but am too worried about it causing issues with the creditors.