DMP Mutual Support Thread - Part 12

Dandytf

Hi mser's
I have a decision to make very soon if and when I return to full time in a few weeks.
Is it more sensible to whack almost all additional earnings onto SC DMP payments-reducing term
Alternatively is it more sensible to increase mortgage overpayments-with possible near term interest rate increases.
When I was previously full time I settled for small overpayments and medium DMP payments.
Which is more important to increase payments and why

January2015

Dandytf wrote: »

Hi mser's
I have a decision to make very soon if and when I return to full time in a few weeks.
Is it more sensible to whack almost all additional earnings onto SC DMP payments-reducing term
Alternatively is it more sensible to increase mortgage overpayments-with possible near term interest rate increases.
When I was previously full time I settled for small overpayments and medium DMP payments.
Which is more important to increase payments and why

If you are not worried how long your DMP will take - well those debts are probably all interest free - so pay the lower amount and take longer to clear it, but the end result is that you will pay the same total.

Your mortgage has interest accruing so it makes sense to overpay that..... however........

If you pay your DMP at the minimum (don't tell them your hours at work have increased) and pay your mortgage at the amount due and SAVE all extra money you can, when you have enough, make full and final settlement offers to your DMP debts. They may not be accruing interest but there is the potential to settle them for less than the outstanding balance. That is definitely the way I would go because you can save tens of thousands of pounds quite quickly.

I've settled debts with F&Fs, one at 10% of the balance and a couple of others around 50% of the balance. That did save me £20k - £30k. I wouldn't have saved that much overpaying my mortgage with the same amounts of money.

Dandytf

January2015 wrote: »

If you are not worried how long your DMP will take - well those debts are probably all interest free - so pay the lower amount and take longer to clear it, but the end result is that you will pay the same total.

Your mortgage has interest accruing so it makes sense to overpay that..... however........

If you pay your DMP at the minimum (don't tell them your hours at work have increased) and pay your mortgage at the amount due and SAVE all extra money you can, when you have enough, make full and final settlement offers to your DMP debts. They may not be accruing interest but there is the potential to settle them for less than the outstanding balance. That is definitely the way I would go because you can save tens of thousands of pounds quite quickly.

I've settled debts with F&Fs, one at 10% of the balance and a couple of others around 50% of the balance. That did save me £20k - £30k. I wouldn't have saved that much overpaying my mortgage with the same amounts of money.

Thanks Jan2015

DMP wise to increase payments I could clear DMP in 2yrs approx-tempting.
F(&F's- partial settled-these must have an additional negative effect on credit rating than existing defaults which are starting to drop of my report.
Though you have achieved very impressive savings!
I have a few weeks yet to consider the way forward.
Edited-If I could trust myself to save then maybe I could continue with existing payments -though think I'll make a small increase with mortgage payments to cost in some possible rate increases -though my mtg is 2yr fix if I could get away with leaving overpayments until mid2019 (when I expect rates to have increased a few times until then)
Enjoying mser's advice which I am already taking into consideration on my attempt to return to full time hours.

System

Akelly wrote: »

Asking for some advice please.

At the moment I'm in about 24000 debt.

I'm currently owing loads to payday loans and in disputes with then via resolver. Hopefully be getting interest paid back.

I'm considering going into a DMP. What worries me if the fact it effect my credit score and hopefully in a few years time I wanted to buy a car on finance. This is what's stopping me. Right now I'm paying out more than what I have in.

I don't want my partner to know which I understand is confusing for some but I can't bare to tell him plus he's very ill.

I'm terrified by court action and constantly harassment from the companies. Could anyone help me xx

Just reiterating what Jan has said really. Look at if a DMP shows as being a good option for you and do not worry about your credit rating....you will not be wanting credit again in the future.
The DMP was the best thing we ever did. Yes our credit scores are trashed, but that doesn't matter as we don't want credit ever again. We are 3 years into the DMP and actually live off real money these days and not overdraft.
Once you start a DMP, you will stop get getting harassed by your creditors and and can start to live a normal life.

chereb

Ok earlier in the thread i was setting up a DAS (scotland) mainly to protect my home. I have a mortgage term remaining of 8 years and about 31k equity which would split jointly between my ex and myself. I am now wondering if i should try the DMP first because it isnt as binding. I dont mean that as i have no intention to pay but hoping through time i will be able to throw extra money into making F&FS. Is anyone here on a DMP with a mortgage and equity? My highest credit card is £14000 !!!129324; and next highest is £9000 the rest are all under £5000. Im just not sure what is best to do.

System

chereb wrote: »

Ok earlier in the thread i was setting up a DAS (scotland) mainly to protect my home. I have a mortgage term remaining of 8 years and about 31k equity which would split jointly between my ex and myself. I am now wondering if i should try the DMP first because it isnt as binding. I dont mean that as i have no intention to pay but hoping through time i will be able to throw extra money into making F&FS. Is anyone here on a DMP with a mortgage and equity? My highest credit card is £14000 !!!129324; and next highest is £9000 the rest are all under £5000. Im just not sure what is best to do.

Yes, we have £44,000 debt and a mortgage of about £66,000 still to pay, finishes in about 7 years. House is probably worth about £160,000 at the moment.
It has never been an issue. SC did ask at the beginning of the DMP if moving house was an option, although they never knew the value of the property or how much mortgage we had left to pay. I just told them that it would be pointless as we would be lucky to find anything cheaper and they were happy with that.

January2015

chereb wrote: »

Ok earlier in the thread i was setting up a DAS (scotland) mainly to protect my home. I have a mortgage term remaining of 8 years and about 31k equity which would split jointly between my ex and myself. I am now wondering if i should try the DMP first because it isnt as binding. I dont mean that as i have no intention to pay but hoping through time i will be able to throw extra money into making F&FS. Is anyone here on a DMP with a mortgage and equity? My highest credit card is £14000 !!!129324; and next highest is £9000 the rest are all under £5000. Im just not sure what is best to do.

Like Ploppy, we have a mortgage/secured load with about 8 years remaining. We have over £250k equity in the property. We are on a wonderful DMP

System

January2015 wrote: »

Like Ploppy, we have a mortgage/secured load with about 8 years remaining. We have over £250k equity in the property. We are on a wonderful DMP

Bet you are looking forward to getting it paid....I know we are....happy days:rotfl:

Akelly

Thankyou everyone.

I've applied for a DMP with stephan getting your all right... Thinking about a car on finance.. I don't need one I want one but and that's a big But what is wrong with saving and getting a really nice car with no debt.

So questions I have about DMP

Do I have to move banks
Do you get really harassed cause I hate things like that.

I'll be getting paid at the end of this month. Will the attempt to take out bills out of my bank if i put this in place before the 29th?
Lastly has anyone been taken to court this is another Big worry ov mine.
Thanks

January2015

Akelly wrote: »

Thankyou everyone.

I've applied for a DMP with stephan getting your all right... Thinking about a car on finance.. I don't need one I want one but and that's a big But what is wrong with saving and getting a really nice car with no debt.

So questions I have about DMP

Do I have to move banks
Do you get really harassed cause I hate things like that.

I'll be getting paid at the end of this month. Will the attempt to take out bills out of my bank if i put this in place before the 29th?
Lastly has anyone been taken to court this is another Big worry ov mine.
Thanks

You have to move banks if you have ANY debt with your existing bank or any bank / credit card company they are associated with.

Do you get harrassed..... no :j

I started with over £95,000 :eek: debt, and if anyone should have been worried it should have been me. Once the DMP process started rolling I wrote to all my creditors and advised that they needed to remove my telephone contact details and that all communication regarding account must be in writing. Providing you stay in contact with them then they have to honour that request