Payplan and clearing debts

davetheman007007

Hi, I am currently in a DMP (balance around 30k) with Payplan, I have an investment maturing next February which I will use to clear the debts which Payplan are aware off, I am receiving default notices in the post.

I am best to continue paying the full payment to next February and get Payplan to see if they can negotate as reduction on the debts?  Or would it be possible to stop / reduce monthly payments to Payplan as some months are a bit tight, I could then pay off the debts myself in February, could I get a CCJ in this time?  An other negatives in reducing payments apart from an increase in letters?

stu12345_2

if you are making some sort of payment to your creditors it's unlikely they will apply for a ccj.
ignoring them fully will only speed up their debt recovery process, which imo is still slow.

you need to ensure that your lump sum is used in negotiation in full and final settlement offers and is not used to clear the full regular amount still outstanding.

there is no guarantee payplan will manage to do that.
imo only you contacting creditors yourself when you have all the investment cashed in allows you to negotiate.
and you say the money is from a 3rd party, cos if they know your investment amount is enough to clear the full amount and coming from you, you won't get the offers of s discount imo.

I would reduce payments to PayPlan, simply tell them to do a new budget, up your expenses, then when you get your investment, ( don't tell PayPal. that you now have the money)leave payplan, then negotiate by yourself to the creditors , by offering less than what is still owed and always say the money is from a 3rd party ( you don't have to explain  who the 3rd party is,)and is not being offered again 

fatbelly

You would be best to try to get all of them defaulted asap. Check your credit files. Payplan's involvement may mean some firms are putting Arrangement markers on.

When you get the lump sum, start making offers yourself

https://nationaldebtline.org/get-information/summaries/full-and-final-settlement-offers-ew/

davetheman007007

Thanks Stu, I am paying £600 a month to Payplan, If I was to reduce this to say £100, Payplan would distribute accordingly I believe, I make the payment each month via there website and not by D/D, my thoughts was if I make a payment this will at least look good and reduce the risk of a CCJ, do you think reducing in Sepetember is too soon, or should I wait a couple more months?

davetheman007007

fatbelly said:

You would be best to try to get all of them defaulted asap. Check your credit files. Payplan's involvement may mean some firms are putting Arrangement markers on.

When you get the lump sum, start making offers yourself

https://nationaldebtline.org/get-information/summaries/full-and-final-settlement-offers-ew/

Thanks, I was thinking the default is bad, is it not then?

stu12345_2

default allows your credit file to repair faster, cos the repair starts from the date of the default.

can you actually make your own manual payments on payplan  website without them being involved as to why you have reduced your price.
i would expect them to write to you as to ask  why?
just say things are tight, please do a new budget for me.

or you can ignore them and see how  they respond, they may close your dmp account with them

with step change who I once used can stop full payments for one full month  up to 3 occasions a year.
but they can reduce your amount to a point where they think it's still suitable to be using a dmp as a solution 

davetheman007007

I have no  idea what will happen when I make a lower payment, they are slow at the moment to respond to any letter I send them, which I send them all the default notices.  

I can just enter any amount when I pay

If they were to close the plan this would take time and would be pretty close the February I am thinking

stu12345_2

if they close it, see how your creditors respond to you, you only respond to them if you get a letter before action from the defaulted ones.

that's the only letter you ever respond to , (the rest can be read, then filled or binned)

and at point you simply offer a good monthly offer, perhaps the same amount you were previously paying. they will accept 

that gets them off your back, then once you have your investment cashed in, you then negotiate with that creditor and indeed all your creditors.

but it's highly unlikely you will get a letter before action up to Feb, especially if you are making some sort of payment to the creditor

and like I said you just make a fair offer if you get a letter before action, and then await your investment, then clear the debt via negotiation 

davetheman007007

Thanks for your suggestions, I am thinking this is a good plan, ideally I would like to stop getting so many letters to my home address, so thinking of setting a PO Box that I can collect my mail from

stu12345_2

letters to your home can be used as hamster bedding and keep postman busy.
just respond to a letter before action if you ever get one, which is unlikely, I've not paid some defaulted debts for months.

I'm going the DRO route.

davetheman007007

I did consider a DRO but with it being so close to February I decided against it