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Paying a DMP off early
Ginger182
Posts: 17 Forumite
Hi, has anyone got any experience of paying off a DMP early? A family member has had a windfall and offered to pay off my remaining balance (£8k) of my DMP. I'd like to pay the balance off in full but my concern is will they then add additional fees or interest on top of the £8k.
Thanks
Thanks
0
Comments
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Its called "full and final settlement".
You agree to pay the creditor, an amount that is mutually agreeable, pay the debt, your credit file entry will then be marked as a "partial settlement".
National Debtline has a good template letter, by all means negotiate over the phone, but any agreement must be in writing.
Why would they add interest and charges ??I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1 -
Thank you. I'm with Payplan so I assume they would take care of the 'Full and Final Settlement'?
I know a DMP is an informal agreement and I was worried that they could add interest or charges!0 -
No, you don`t allow any 3rd party to deal with this, they will just take the balance, which you have to pay to them, and distribute it amongst your creditors, there will be no negotiating, and you may end up still owing money.
You should really do this yourself, it can take some time, and a little effort, but you will save some money, unless your happy for Payplan to do this for you, depends if your wanting to save some money or not.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter1
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