Payplan Annual Review

swansea_lad

Payplan have asked for 2 months of Bank Statements and Payslips. Do they alter the payment plan? I worked 2 months overtime and i have a bit more in my bank account.

Thanks

sourcrates

Hi,

Debt management is an informal solution, as you are aware.

Your payments are based on your disposable income from your budget, so if you have had a pay increase for example, then they may recommend your payments rise in line with that, however, with regard to overtime, its never guaranteed, and will not be used to calculate any payment increase.

As I said in my opening sentence, DMP`s are informal, they are not regulated, so you cannot be made to agree to something you don`t think is right, if at any time you are unhappy with what they are asking you to pay, say something, you do not have  to agree to it, you can say no, and give your reasons why.

Its your DMP, PayPlan only run it on your behalf, control always lies with you.

swansea_lad

Ive just put a little to one side just in case i need to change the car. As a emergency fund.

sourcrates

swansea_lad said:

Ive just put a little to one side just in case i need to change the car. As a emergency fund.

And that's fine, if they ask about it, you tell them its non negotiable.

fatbelly

It's always advised to have an emergency fund. The Standard Financial Statement has a space for a savings amount.

https://www.moneyhelper.org.uk/en/savings/types-of-savings/emergency-savings-how-much-is-enough?source=mas#

I would go a bit further and say that your dmp payment should be based on your minimum income so that it is always affordable and your emergency fund should be viewed as a fighting fund that you can use for full & final settlement offers to end the dmp early.