DMP advise

Sillymum93

Can anyone advise on my best route?

Or would contacting the debtors individually asking for some grace and pay off my payday loans first. Cause if I settle them both straight away they are gone and then it's just the credit cards and the loan

Thanks

Grumpelstiltskin

Do not contact any of your creditors if you can help it.

Once you are doing a self managed DMP you can do what you want, with the payday loans have you thought about affordability claims before you pay them off?

Sillymum93

https://forums.moneysavingexpert.com/discussion/comment/81997926#Comment_81997926

Sorry I have never heard of affordability claims

What does this mean

Thanks

RAS

It means that the lender has to demonstrate that you could afford to take out/repay the full debt. So giving more credit to someone already struggling, paying minimums long term etc can fail the affordability test. As could someone whose credit record suggested they were struggling when they applied.

If they agree, you might be repaid all interest, have repayments limited to the original value and/or have the debt removed from your credit record, or have it removed once the principal is paid.

Responses aren't necessarily consistent and you may need appeal to the Financial Ombudsman. But some people have had repayment reduced and others who've paid a lot of interest have been refunded.

Rob5342

You can handle it however you want to, but I would suggest that a blanket approach is best. Stop paying everything, wait for them all to default, build up an emergency fund while you are waiting for the defaults and then start paying at a rate that you can afford. The danger in trying to clear some of them first is that you don't have the money to build up the emergency fund, then something crops up that needs paying for and you either have no way to pay for it or you have to borrow again and end up back where you started.

Affordability complaints are well worth considering but they can take a long time and there is no guarantee of the outcome. You should certainly look at them while your are waiting for defaults, but don't delay anything in the hope that they might clear some debts.