Advice on paying off DMP early, please

ChoccyPiglet

I have had a DMP with SC for five years and have another three years and c£13,000 to go. My mother has just inherited some money and wants to give me £10,000. Having had little spare money for the past five years, this £10,000 seems to have addled my brain and I have no idea what to do next!

My priority is to pay as much as possible off the DMP. However, I can see that some people negotiate settlements with their creditors. Is it reasonable to do this? And is it possible while with Step Change? Or should I just pay off a lump sum and continue making payments until it is all paid off?

I know that either way my credit rating is shot to pieces, not that I want credit ever again!

Any advice would be greatly appreciated.

National_Debtline

Hi there


Given how long you have been in a DMP, and how much you still owe, I think using some of the £10,000 to make a full & final offer sounds a good idea.


I'd advise you to start by talking to StepChange as they may be able to do the negotiating for you. If you prefer you can do it yourself but make sure you have written confirmation you will not be pursued for the remaining debt in the future and the debt will not be sold on. You should always keep this letter for your records.


You can more information on making a full & final settlement here https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx. Good luck with it all.


Susie
@natdebtline

fatbelly

Use that factsheet and this thread

https://forums.moneysavingexpert.com/discussion/115430/full-and-final-settlement-help-thread

for support, and make offers in full & final settlement yourself. 10k should be more than enough to get rid of 13k debt.

If you work smart here you should come out of this debt-free with a useful emergency fund.

sourcrates

Agree with Fatbelly on this one.

If you use stepchange to do the negotiations, they usually ask for the, in your case, 10k, upfront.

Then some stranger will more than likely, just distribute the money between your creditors with little or no motive to obtain the best deal for you.

Now I dont know about you, but I like to be in control of where my money goes, if you play your cards right here, you can pay back your debts, and walk away with a few grand spare.

Suseka97

That's really great news :j

Definitely follow the advice of those above and take control of the F&Fs yourself. As said, if you box clever you should be able to clear the whole £13k with change.

Good luck

DawnW

I would definitely keep a couple of thousand back for an emergency fund! Good luck with whatever you decide to do