Coming out of DMP - help please

joe298487

Hello

We are with payplan and they have been excellent.

However so we can get a better mortgage rate we wish to come out of our DMP plan.

At the current rate our plan finishes in 6 years but we wish to come out and pay creditors in 3.

is there a template letter/email we can use to try to come to an agreement with creditors to lock in the same benefits as pay plan ie no interest given the fact that they will be getting double the amount of payment they normally get.

Any advice on this would be very much welcome.

Thanks
Joe

sourcrates

Hi,

The only problem you may encounter by doing this, is that if the payments you make are equal to, or more than, the original contracted payments, then they will start interest again, regardless, it will be very difficult to persuade them otherwise.

What people normally do is keep the payments the same, and save up any potential extra money they may receive, then in time, make full and final offers to creditors as and when funds allow.

This has two benefits for you :

(1) No risk of interest been started again

(2) You get to settle each account for a substantial discount.

If you need further advice on this, why not post in the general forum ?

joe298487

thanks that is something i never thought of doing.

we were told by a mortgage broker that ideally we need 12 months out of DMP to be considered for the best rate.

i will move this to general discussion.

thanks

joe298487

I was going to send this email?

Dear Sir/Madame
I would like to email you regarding account XXXXXX

In December 2011 we entered in a DMP plan with pay plan because of payment difficulties, with our immense gratitude you accepted the terms of offer and since then we have paid nearly 50% of the debt off to yourselves. The current DMP plan is expected to end 1/04/22 nearly (6 years’ time).

We very much would like to pay you quicker than this and come out of the DMP to a self-managed plan.
At the moment we pay XXXX per month and according to our records we owe XXXX
We would like to make an increased offer of XXX . This will finish the dept within 36 months (3 years).

Please can you confirm that this is acceptable to and that like in payplan the interest charges would be wavered and the final amount paid back would be XXXX

Many thanks
x

what do we think?

glentoran99

joe298487 wrote: »

I was going to send this email?

Dear Sir/Madame
I would like to email you regarding account XXXXXX

In December 2011 we entered in a DMP plan with pay plan because of payment difficulties, with our immense gratitude you accepted the terms of offer and since then we have paid nearly 50% of the debt off to yourselves. The current DMP plan is expected to end 1/04/22 nearly (6 years’ time).

We very much would like to pay you quicker than this and come out of the DMP to a self-managed plan.
At the moment we pay XXXX per month and according to our records we owe XXXX
We would like to make an increased offer of XXX . This will finish the dept within 36 months (3 years).

Please can you confirm that this is acceptable to and that like in payplan the interest charges would be wavered and the final amount paid back would be XXXX

Many thanks
x

what do we think?

Couple of things you aren't actually "coming out of a DMP" you are just doing it yourself, A DMP is informal, so they wont commit to waive interest and will look to review probably every 12 months or maybe less.


how many creditors? What are the balances? you would need to try and ensure your offer is pro rata to them.


If you must insist in sending an email I would cut out most of it and simply say


Dear Sir/Madam
Ref Account :-xxxx

In December 2011 we entered in a DMP plan with pay plan because of financial difficulties,

I am now going to self manage rather than use payplan
At the moment we pay XXXX per month and according to our records we owe XXXX

We may be in a position to offer xxx per month

Please can you confirm that this is acceptable and interest and charges will continue to be frozen and could you also confirm the current balance on the account


Yours
joe


also be careful of your spelling, but I would second what sourcrates has said, put the extra in a savings account and pay off in full and final settlements, chances are you will finish a lot sooner, in fact it may be worth reducing your payments if you can wangle it, an 11 year DMP seems very long, is there a reason other solutions weren't acceptable?

joe298487

thats great thanks for your help