Struggling with debt? Ask a stepchange debt adviser a question

StepChange_Aidan

Richba50 said:

Hi, I have just applied for a DPP through step change and received the email saying to contact our creditors and stop payments immediately. All our creditors have paused everything for 30 days. My question is because we are not paying creditors we have around £800 surplus, can we use this money to, for example, pay off smaller creditors? Our loans and credit card debt is £50k but we owe Creation £500 on a buy now pay later deal so could settle this before its due? Also, we have a holiday booked for next July and the deposit of £400 is non-refundable (cancellation fee is £400) the balance is £800. Can we pay this up if on a DPP and still go on holiday? Thanks,

Hi,

Thanks for your post.

We would recommend offering each creditor their fair share of what you can afford, but you do have the option to clear some of the smaller debts before starting a Debt Payment Programme (DPP).

In a DPP application, you can choose how much you want to pay towards your debts, but creditors will be able to see the amount you have left in your budget and the amount you have chosen to pay, if this is less.

You can also set aside funds for in your budget to save for holidays, but there is a risk that creditors may not consider this as an essential expense and be less likely to accept your offer.

I would recommend getting in contact with our Debt Arrangement Scheme team in Scotland directly, as they can discuss your DPP and budget in more detail.

I hope this helps,

Aidan

Richba50

Thanks, just as a follow up, if I earned overtime (voluntary and non-contracted) could I use this for a social/holiday fund and to pay extra to the DPP? Thanks,

StepChange_Aidan

Richba50 said:

Thanks, just as a follow up, if I earned overtime (voluntary and non-contracted) could I use this for a social/holiday fund and to pay extra to the DPP? Thanks,

Hi,

If you earned overtime, you wouldn’t be obliged to pay the extra funds into the DPP, so it could be set aside for holiday costs.

Alternatively, if you received the overtime on a regular basis and wanted to increase your monthly payment to clear the debts sooner, you could contact your DAS (Debt Arrangement Scheme) Administrator for a review.

Regards,

Aidan