DMP extra payments

sweetnothing

Hi everyone 😊
Okay so a bit of background I'm in the process of setting up a DMP as I've accumulated 13k worth of debt for various different reasons. I set it up based on my base salary not including overtime, I want to do more overtime so I can pay this DMP off quicker.

Anyway my question is, if I did overtime would I pay the extra money I earned to SC or could I go directly to the companies and pay stuff off to them?

Suseka97

If you want that level of flexibility, then you may want to consider going self-managed. I have to admit I'm not sure how SC would handle irregular additional payments, but what you could do is set-aside the overtime income and perhaps when it reached a certain amount - then see whether any of your creditors would be up for considering a full and final settlement at a discount. With that said - F&Fs are generally brought into play further down the line, when accounts are defaulted.

sourcrates

Hi,

Unfortunatly stepchange will not be able to accomodate extra payments such as you describe, they are geared up to accept and disribute one payment from you per month, it could also cause problems with your creditors, as they will be accepting your plan on the basis of the budget you produced to stepchange.

If extra money starts rolling in, they will most likley want to know where its come from, and although it will be from a legitimate source, it could potentially casue you all sorts of problems, not least of which they may refuse to stop interest as the extra payments you make may be as much as or more than, your contracted minimum.

You are best off saving it up as suggested above, and then going for full and final settlements as and when appropriate.