Could I settle a DMP early with a lump sum?
Let your DMP provider know if you get a lump sum.
A lump sum could be:
They may suggest one of the following options:
- Pay the money into the DMP
- This spreads the amount fairly among your debts
- It makes your DMP shorter
- Pay the people you owe in full if possible
- Make partial settlement offers
- This is when you pay off part of the debt
- This is based on the money you have available
- Your provider asks for the rest of the debt to be written off if there is not enough to pay the full balance
The people you owe do not have to agree to a partial settlement offer. But there is no harm in asking the question to see if any discounts are available.
You could also sell assets to pay off debts.
These include things like:
- Vehicles
- Antiques
- Valuable goods like jewellery
What if I have a windfall or win the lottery during my DMP?
You would be expected to pay off part or all of your debts if you won the lottery.
This depends on:
- How much you win
- How much debt you still owe
- How this lines up with the amount of money you have won