In a DMP, can i only make decent token payments for months, then make offers.

stu12345_2

Hi, going thro all my options to get rid of debt. ive been with stepchange for 15 months on a DMP, £547 a  month with wife. we owe £22,500,  3years to go. had to cancel this months stepchange DD as fell behind with rent and electricity bills. so used that money to clear it those bills.. I will have to contact stepchange to say sorry no DD this month. I may make a small payment of say £100 manually with stepchange.
        Can I do this for say a few  4-6 months, even if ive caught up with rent, electricity as my plan is to make small £100 payments, then maybe save up ( cos im making smaller£100 only payments, ) then offer some of the creditors Full and final haggled settlement offers.( cos ive saved up say £2000-£3000) by only paying £100 a month
will they ask questions , both the creditors and stepchange, eg If weve caught up with rent, electricity, and want to know why we not paying £547, will they ask where the money is coming from to make some Full and final settlements at a haggled price, or will they know it is coming from the fact im only making say £100 a month to them?  what about stepchange , will they ask questions or stop my account with them? or suggest an IVA.
 As i will never be able to make haggled F and F offers, cos i cant save up any bulk amounts whilst in on a DMP.

stu12345_2

it's just that ive read and seen videos saying just make token payments for months and months, the creditors will get sick of it and be glad to accept a low ball full and final offer. As 90% of the debts have been sold on already to 3rd party companies. my question is I read i dont have to show them new income and expenditure sheets. I  say i cant afford it anymore, here is a small £100 a month, and then months down the line make a reduced F and F offer.

Grumpelstiltskin

Have you decided against going part time and going for a DRO?

going fulltime to partime and not claiming universal credit then DRO application? - Page 4 — MoneySavingExpert Forum

stu12345_2

waiting for the phone call from CAB DRO advisor on the 28th sept, but ive seen and read more, thats why looking at all options such as staying fulltime at work, but reducing my DMP and saving up and making low ball offers, cos the debt companies hate tiny monthly amounts, as it take yrs to clear,and will be more than happy to take a  low ball offer.
i watched a video and it talks about making an offer, but one viewer wrote"how do i make an offer if i can never save up a bulk amount cos im paying them what i have left over every month in a  DMP" I guess i have the same problem, no family to make the offer for me. so i would have to come up with the money myself.
 as 2 of the debts add up to £14,000, but the other debts are spread over £8000, and if i make theses £8000- debts say 20-40% offer of say £1600-£3200, i save myself alot of cash.
 the best win win idea is make tiny token amounts for months and months, then offer the £22,500 minus the token amounts, and make 20-40% offers that would save me £thousands, as long as the creditors would let me make tiny token amounts for months, whilst i try and save up to make them F and F offers.
then i avoid the DRO method. and maybe stay fulltime at work, or even change jobs

Grumpelstiltskin

Why don't you contact Stepchange and tell them you will have to pay nothing for a few months and during that time make sure you are paying all the vital items, rent, council tax, utilities and if you have any money left over use that to save for F &F payments.

Have you sent CCA requests on the debts to see if they are enforceable?

stu12345_2

i think all my debts are enforceable, and if i do a new finance statement with stepchange, they will wonder why i am suddenly £400 plus poorer every month, when Im not, as ive paid my priority debts now,and my income , expenditure is exactly the same, plus if i alter it to fit the narrative, then stepchange will refuse a DMP for 15 yrs, and suggest other methods, even tho my plan is to make a F and f offers via saving up.
 I only fell behind recently with rent/electricity due to a mix up with direct debits, cos i accidently cancelled them and never budgeted correctly, even tho i should have and could afford to.

stu12345_2

my main point is can i alter my income /expenditure statement, to benefit me,( in order to save up) cos ona DMP i can only save £50 a month( thats the suggested limit) and can i refuse to send one to the creditors if i leave stepchange and do it on my own.

Floss

Or you could leave Stepchange & go self-managed, reduce your payments to £100 split across all of them for 6 or 12 months and then offer settlement when you've saved up? 

Do you have an emergency fund?

stu12345_2

no emergency fund, so you think i can go it alone and make a budget statement( increasing expenditure, in order to allow me to save up) or should i just not do one and write to them saying here is what you are getting. and if i do eventually do a aF and F, and i dont say where the money is coming from, will they refuse? I also have to work out a prorata method, or do i pay them equally, Im worried if i pay one or more of them too much, and I do go down the DRO route, the advisor may say, you are paying too much to one or two creditor every month, DRO refused

Grumpelstiltskin

You say you think the debts are enforceable but have you actually checked?

stu12345_2

not checked yet, but is something about them being before 2007 to be unenforceable, they are well after 2007 when i took them on.many of them we took on in 2018. I cant get the companies on unfair lending, as they stopped my limits many times due to fair banking policies and i was only making just above min payment per month.