DMP annual review

tinybull

I've been on my self managed DMP journey for two years and so far kept my repayments unchanged. I managed to absorbed the cost of living crisis, energy prices and lack of meaningful pay increases over the years until now. Our landlord is increasing our rent by £200 and we simply cannot afford to continue on the same basis.

I shortly want to write to our creditors (debt recovery agencies) that our repayment will need to change in order to meet our budget.

Do I wait for the creditors to respond to my letter before I change the Standing Order to each of them or do I just state in my letter that from "this date" my payment will change fore the reasons given?

tinybull

I have also been considering making a large reduction to our monthly repayment which is currently £750 on £45k of debt in order to save towards a F&F settlement in a few years time. 

In my annual review, is this something that I could do? Is it as simple as creating a budget that reflects this new "affordable" payment? I am thinking of reducing £750 down to £200

[Deleted User]

That does a rather drastic reduction in monthly payment. It would move your debt free date even further away. I am not sure if your creditors would find it acceptable.

fatbelly

Tell them what you are doing, then do it.

You do have to give them figures that add up.

None of them will have a problem. From their perspective as long as you are making a payment you are acknowledging the debt each month .

The longer term the dmp is, the better chance your F&F offers will have of being accepted, when you make them.

You shouldn't have been absorbing any increased costs. If you were on a 'commercial' dmp your expenditure would have been reviewed annually

sourcrates

You don`t really have an annual review when your self managing, you are in total charge of how much you pay and when.

As fatbelly suggests, debt collectors/purchasers will be content with whatever your budget says you can pay.

It would be quite rare to repay the total outstanding debt, especially when times are tough, they pay pennies in the £ for these accounts, so want a reasonably quick return, not £1 a month for ten years, so settlement offers will usually reflect this.

Rob5342

You're in charge so simply change the standing orders to the amounts you decide and tell them what they'll be gettinng.

Have youade CCA requests to see if they are enforceable?

tinybull

Rob5342 said:

You're in charge so simply change the standing orders to the amounts you decide and tell them what they'll be gettinng.

Have youade CCA requests to see if they are enforceable?

I have not yet checked but think one credit card is likely to be unenforceable as it started off as a store card back in 2002. Others are relatively new from 2010 onwards. 

Sly72

tinybull said:

Rob5342 said:

You're in charge so simply change the standing orders to the amounts you decide and tell them what they'll be gettinng.

Have youade CCA requests to see if they are enforceable?

I have not yet checked but think one credit card is likely to be unenforceable as it started off as a store card back in 2002. Others are relatively new from 2010 onwards. 

Would try CCA i have defaults from 2011 onwards up to 2019 so far none have been able to provide info so have had letters informing me they are not enforceable, but still would like me to pay.