DMP Mutual Support Thread (Part Three)

Mogminnie

I also asked about overpayments. Payplan advised me to save any extra cash and offer it as a full and final settlement amount to more annoying smaller debts and then let them know if they accept and they would redistribute monthly payments. Although they don't advise favouring one debtor over another the others are ususally happy as their payments go up. Offer as a one and only time payment.

WhoopieDoodle

Good morning folks.

Miss Marple, you have hit the nail on the head! We feel we may be able to save some extra money but would prefer to pay off the smaller debts completely. However, we would have to distribute it between all the creditors as we can't be seen to be favouring anyone.

We will just see how things go and take it from there.

tishywish

Mogminnie wrote: »

I also asked about overpayments. Payplan advised me to save any extra cash and offer it as a full and final settlement amount to more annoying smaller debts and then let them know if they accept and they would redistribute monthly payments. Although they don't advise favouring one debtor over another the others are ususally happy as their payments go up. Offer as a one and only time payment.

Thanks for that info, I was wondering about doing that as I've got two smallish debts that I could probably clear completely in a few months - I'd be happier with the larger debts getting more money thrown at them too. I'm making my first payment next week on my DMP so will be glad to finally get it under way properly.

cloudnine_2

Hi everyone. I'm with CCCS who are simply wonderful and, at least in my case, they advised that my relationship with them might go wobbly should I start paying bits off certain of my creditors ad hoc. They ask that any additional funds are spread around my creditors on, a pro rata basis. However, one of my creditors, a bank, served a statutory notice on me and both CCCS and myself were in no doubt that they were going to see it through. The debt was over £20K. In that case CCCS agreed that if I could settle in full it would be to my advantage and would get them off my back. Family helped me. The full and final settlement was alot lower than the amount owing. So, I place all available savings into a pot and thats waiting for the time another creditor goes for my jugular. At least I'll have something to bargain with. But, in my case, I'd never approach a single creditor without them threatening court action. They may also believe that you have more available funds than you are declaring in your dmp breakdown. I've seen people on this site, managing their own dmps, who have been honest enough to increase their monthly dmp payments only to see some creditors immediately either reinstate interest and other charges or, demand an even higher dmp payment. I can only speak for myself, but, I'm keeping to my 'rainy day' system.

weezypoos

Sorry if this has been posted elsewhere but I was wondering..... If I called CCCS with the exact amount outstanding on the statements we receive from our creditors, will they update the amounts on our CCCS statements as at the moment they are all estimates and I'm sure quite wrong!

cloudnine_2

Hi. I update my monthly balances online at my CCCS personal site. Sometimes, I'll call them and just run through each creditor and balance. The CCCS do take a few days to update their system so, don't be frustrated if your details don't change for a a while. The other thing which can throw you, is when you have perhaps agreed an increase in your dmp payments with the CCCS, and you don't see a change online in your statement. This is because the increased amount will be taken one month but the increased payments won't show in your online statement until the following month. Its just the way they work, but all comes right in the end.

weezypoos

Great, many thanks for that!

I'll dig out all our current statements and hopefully get a final figure of what our actual debt is! Hopefully its not 5k more than what we thought! :rolleyes:

debrag

Mogminnie wrote: »

I also asked about overpayments. Payplan advised me to save any extra cash and offer it as a full and final settlement amount to more annoying smaller debts and then let them know if they accept and they would redistribute monthly payments. Although they don't advise favouring one debtor over another the others are ususally happy as their payments go up. Offer as a one and only time payment.

Oh I'm liking that by the end of the year I'll have enough money to pay off my 2 lowest debts and this would be great if I can do that.

Question:

Getting near the end of the plan - when do the DMC's start to find out what we still owe & what is interest added on etc?
By the end of next year I'll owe between £5-6K hopefully I'll be able to add my claimed charges and get it even lower.

Leaving a plan and snowballing - will creditors start charging interest again?

lisabell

Just a few questions im on a dmp have been for 12 months now and we want to start getting it down is it better to save the extra money and in a few years begin offering some full and final settlements or just start giving it to our DMP company to pay off but am worried if they see us making regular overpayments they will start adding regular interest again.
Any help greatly appreciated
Lisa

rayday2

I personally would save it until you can make some offers, especially in the uncertain financial times it can double as an emergency emergency fund too then and earn interest!