Additional payments to DMP, or save?

amat6219

Hi All, 

We were in dire straights in the Summer - £40k+ debt and not a clue where to start. We have combined our finances fully and now managed to pay off over £7k thanks to DMP with Payplan, and are in a much better place mentally because of it! 

As of Friday, I have paid off all my debt which wasn't included on the DMP (husband's) so all outstanding debts we have now are included in the DMP.

Because of this, I have a 'spare' £150/month that I was paying off my debt - what is best to do with this? Add it to savings then offer as a lump sum at some point? Or is there a way it can come off other debts included in the DMP? - the review with Payplan is not until July and I am not sure of the best path to take...?

Any suggestions appreciated! 

Rob5342

Have the debts all defaulted?

DisabledDan

amat6219 said:

Hi All, 

We were in dire straights in the Summer - £40k+ debt and not a clue where to start. We have combined our finances fully and now managed to pay off over £7k thanks to DMP with Payplan, and are in a much better place mentally because of it! 

As of Friday, I have paid off all my debt which wasn't included on the DMP (husband's) so all outstanding debts we have now are included in the DMP.

Because of this, I have a 'spare' £150/month that I was paying off my debt - what is best to do with this? Add it to savings then offer as a lump sum at some point? Or is there a way it can come off other debts included in the DMP? - the review with Payplan is not until July and I am not sure of the best path to take...?

Any suggestions appreciated! 

Considering the collection status of debts can change and the fact that you never know what is around the corner I would save it or checkout this site for high paying accounts.

amat6219

Rob5342 said:

Have the debts all defaulted?

I think so… we just threw everything to Payplan and pay DD to them monthly now, have assumed they’d let them default? 

Rob5342

amat6219 said:

Rob5342 said:

Have the debts all defaulted?

I think so… we just threw everything to Payplan and pay DD to them monthly now, have assumed they’d let them default? 

Check your credit report and see if they have defaulted or if they have payment arrangement markers.

If they have defaulted and are with DCAs then I'd save the extra money and consider reducing what you pay towards them. That will let you save up some money that you could use to make a reduced settlement offer. If they have been with DCA's for a while then you might also want to make a CCA request to see if the debts are enforcable or not.

If they haven't defaulted then depending on how long left the DMP has to run then you may wwant to consider stopping payment completely until they default, saving the money while you wait.