Is this the quickest way to become debt free?

Hannahcho

So I m currently in about £4000 debt and paying £60 per months on a DMP!

I have been reading about Full and Final settlement offers, I don t have a lump sum of cash available.

Would it be possible to keep paying the £60 per month on a DMP, save up about 80% of the debt and offer to pay them on a full and final settlement offer, then move onto the next debt and continue until debt free or would I have to pay all crediors at once?

Any advice would be greatly appreciated!
Thanks in advance!

sourcrates

Hannahcho wrote: »

So I m currently in about £4000 debt and paying £60 per months on a DMP!

I have been reading about Full and Final settlement offers, I don t have a lump sum of cash available.

Would it be possible to keep paying the £60 per month on a DMP, save up about 80% of the debt and offer to pay them on a full and final settlement offer, then move onto the next debt and continue until debt free or would I have to pay all crediors at once?

Any advice would be greatly appreciated!
Thanks in advance!

Hi,

You can do exactly what you want to do, DMP's are informal arrangements, there are no real rules here.

Who is your DMP with ?

Normally you are expected to treat each creditor fairly, but in reality, you can pretty much do as you please, save up, and settle each one, as and when you can, is a good plan.

As you pay each one off, just ask your provider to remove them from the arrangement.