DMP Payment Break (Payplan)

Ginger182

Hi,

I've had a DMP via Payplan for over 4 years. During this time I've never missed a payment and have paid off around 50% of the balance (circa £13k left to pay).
I was wondering if anyone has had a payment holiday and if so, what are the implications? Due to Xmas, Car Repairs and my wife's maternity pay finishing I could do with a little help over the coming 3 months and enquired whether I could take a 3 month payment break. Has anyone else had one? I don't want to jeopardise my DMP in any way as it works for me.
Thanks for your help.

Willing2Learn

Yes, other people before you have had to suspend their DMP payments due to unforeseen expenses or reduction of income. You won't be jeopardising your DMP. You should phone up PayPlan and let them know your intentions.

Ginger182

Thank you. I've been getting conflicting advice on these forums. Some people saying their debt company won't extend and they issue CCJ's if payments are stopped. (Thinking about it I would only be after a 2 month break rather than a 3 month.)
As I said above, I don't want to ruin or upset my DMP creditors. My DMP works well for me. The payment goes out of my account on payday and has done for 4 years. I've almost forgotten about my debt as it was very stressful when setting it all up and I've had years of calm which I'd like to continue.
I was worried about getting threatening letters again through the post!

Willing2Learn

If you do get any letters, then they will be of the auto-generated type and can be ignored. Two months is not a problem. Like I said, you must talk with PayPlan and keep them fully appraised. Stuff such as emergency car repairs and the reduction of income due to end of maternity pay, are perfectly acceptable reasons to have a short suspension of the plan.

With your wife's maternity pay finishing are you sure that your current level of payments will be affordable in the new year. If not, then you might have to recalculate things with the support PayPlan.

Ginger182

Thanks again. You're a great help.
The only slight problem I have is that Payplan won't be aware of my new arrival! My reviews have just rolled over and everyone is happy with the payments so I haven't told them of my change of circumstance. I don't want them to 'dig up the drains' again as my wife and my finances are closely intertwined. She doesn't have a DMP but I'm the main 'bread earner'. She has bills to pay that I assist with and vice versa. I think this is where my fear of upsetting my creditors comes from!

I may say it is just for car repairs which is perfectly true!

Ginger182

Update: Payplan come back to me and send can I defer for 3 months but I must pay a minimum of £4 which is great! (I assume £1 per creditor as I have 4). Thanks for your help! I'm just so nervous with mucking up my DMP as for work reasons I can't have anything stronger (IVA/CCJ etcs)