We work out what to pay the people you owe (known as your creditors) using your contractual payment amounts. This is what you would have agreed to pay when you first took out the debt.
The payments we make are in proportion to the full amount of the debt you took out, not what you currently have left to pay. Let's say for example:
- Your DMP payment is £15 per month
- You have a £1,000 credit card which you agreed to pay £25 to each month
- You also have a £7,000 loan which you agreed to pay £50 to each month
- This means your DMP payment will be split as £5 to the credit card and £10 to the loan
We work out payments this way because:
- Accounts are paid at a similar rate to the original contract you signed
- Creditors will be paid off one by one, so you will clearly see the progress you are making
- As smaller debts are paid off, the larger debts will get a higher amount
Creditors usually know how we work out payments. If they ask you about this, tell them to get in touch with us.
Fair payment to creditors
The budget we helped you put together means that you have enough money to live on and you are paying as much as you can afford towards your debts.
We make sure that this payment is shared fairly between your creditors so they each get the highest amount possible.
Don't make extra payments to your creditors outside of your DMP. Making payments outside of your plan can:
- Show your creditors you are treating one debt as more important than the others
- Make you fall outside of your budget and lead to not having enough money to live on or pay important bills
The impact of falling behind with important bills are far more serious than not making extra payments to your debts.
Sometimes creditors might tell you they are not accepting your offer of payment. Creditors cannot refuse them, so don't cancel your DMP payments.
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