Looking for some help with my DMP

jwmoore90uk

I've just received news that I might be in line for a new job role which has quite a decent pay rise along with it, which is a massive release considering I've been struggling for so long !

I have a DMP with PayPal plus, I have 4 creditors with debts I will post below in images, these creditors have sent me settlement offers and I'm not sure of the best way to go about settling this, wether that's upping my DMP payment monthly, or going direct and settling.


Any help appreciated.

jwmoore90uk

I started the dmp in march 2021, making payments of 550 a month, I was made redundant in December 2022 and had to reduce payments to 34 a month.

My new job role would be able to see me make approx 500 a month in payments.

I have 0 emergency fund, I live week to week, my credit is terrible, I was denied a phone contract the other day as my phone broke, I'm lost and not sure what to do.

elsien

Are you doing a self managed DMP? I would suggest building up your emergency fund before deciding about next steps.

Brie

How much of your money is actually going to your debts?  It's possible that you would be better off managing the payments yourself.  £500 a month means you could clear your debts in 4 years.  I doubt that would happen on the DMP.  

Don't worry about getting a phone contract.  Take a bit of the new money you'll be paid and buy outright a phone.  Lots of nice ones for under £200 even if they aren't the latest iphone or whatever.  You might then be able to get a sim only contract - mine has just shot up to over £7 a month but cheaper ones are available.  

jwmoore90uk

elsien said:

Are you doing a self managed DMP? I would suggest building up your emergency fund before deciding about next steps.

Payplanplus deal with all payments, I pay the monthly fee to them and they divide it between creditors.

jwmoore90uk

Brie said:

How much of your money is actually going to your debts?  It's possible that you would be better off managing the payments yourself.  £500 a month means you could clear your debts in 4 years.  I doubt that would happen on the DMP.  

Don't worry about getting a phone contract.  Take a bit of the new money you'll be paid and buy outright a phone.  Lots of nice ones for under £200 even if they aren't the latest iphone or whatever.  You might then be able to get a sim only contract - mine has just shot up to over £7 a month but cheaper ones are available.  

I believe they pay 100% to the debts, it's a 0% profit org, I'd have to check though, would it be worth contacting the company's and asked for settlement offers ? Would that go on my record as partially paid ? I'm not sure whats best to do, I'm mid 30s now and it's looking like I've ruined my credit for the rest of my life, I'm never going to be able to get a mortgage at this rate 

Rob5342

Getting some savings behind you should be your number one priority. One amount of money upcoming expenses you know about and a second amount for covering genuine emeregencies that couldn't have been forseen. I'd keep quiet about the new job and put money aside for those two things, and then start saving for settlement offers. When it comes to settling contact them directly and see if you can negotiate a lower figure.

In the meantime have you made CCA requests? If they can't produce the CCA then they aren't able to take any legal action against you and you can simply stop paying them.

jwmoore90uk

Rob5342 said:

Getting some savings behind you should be your number one priority. One amount of money upcoming expenses you know about and a second amount for covering genuine emeregencies that couldn't have been forseen. I'd keep quiet about the new job and put money aside for those two things, and then start saving for settlement offers. When it comes to settling contact them directly and see if you can negotiate a lower figure.

In the meantime have you made CCA requests? If they can't produce the CCA then they aren't able to take any legal action against you and you can simply stop paying them.

Is there a certain template to use to request these details from them ? I've never done this so it is something I'll look into! Appreciate your help 

Rob5342

There is a template here, the older the.deht is the.more likely it is that they won't be able to provide the CCA, but it's worth trying on any case 

https://nationaldebtline.org/fact-sheet-library/credit-agreements-getting-information-ew/

Rob5342

jwmoore90uk said:

Brie said:

How much of your money is actually going to your debts?  It's possible that you would be better off managing the payments yourself.  £500 a month means you could clear your debts in 4 years.  I doubt that would happen on the DMP.  

Don't worry about getting a phone contract.  Take a bit of the new money you'll be paid and buy outright a phone.  Lots of nice ones for under £200 even if they aren't the latest iphone or whatever.  You might then be able to get a sim only contract - mine has just shot up to over £7 a month but cheaper ones are available.  

I believe they pay 100% to the debts, it's a 0% profit org, I'd have to check though, would it be worth contacting the company's and asked for settlement offers ? Would that go on my record as partially paid ? I'm not sure whats best to do, I'm mid 30s now and it's looking like I've ruined my credit for the rest of my life, I'm never going to be able to get a mortgage at this rate 

Have all the debts defaulted? A debt that has defaulted will drop off your credit report 6: years after the default date. 

jwmoore90uk

Rob5342 said:

jwmoore90uk said:

Brie said:

How much of your money is actually going to your debts?  It's possible that you would be better off managing the payments yourself.  £500 a month means you could clear your debts in 4 years.  I doubt that would happen on the DMP.  

Don't worry about getting a phone contract.  Take a bit of the new money you'll be paid and buy outright a phone.  Lots of nice ones for under £200 even if they aren't the latest iphone or whatever.  You might then be able to get a sim only contract - mine has just shot up to over £7 a month but cheaper ones are available.  

I believe they pay 100% to the debts, it's a 0% profit org, I'd have to check though, would it be worth contacting the company's and asked for settlement offers ? Would that go on my record as partially paid ? I'm not sure whats best to do, I'm mid 30s now and it's looking like I've ruined my credit for the rest of my life, I'm never going to be able to get a mortgage at this rate 

Have all the debts defaulted? A debt that has defaulted will drop off your credit report 6: years after the default date. 

How would I know this ? All the debts have been bought by collection agency's (moorcroft and pra) I started my DMP in 2021 so I presume they have defaulted ?