Debt management advice - New job

[RhiRhi123]

Hi,

I am currently on a DMP with Pay Plan which I have only just started and have made the first couple of payments. Through some stroke of luck I have been offered a new job which I started this week which is double my current salary. However it is currently a contract till the 31st of December (my previous contract came to an end - I did not leave a permanent job).

I was just wondering what the best way to go about things would be. Has this happened to any of you before?

I would ideally like to pay the smaller things off and then continue my DMP with my larger loans and pay a higher amount towards them. Do I have this flexibility?

I have come here for advice first as I don't want to say the 'wrong' thing to PayPlan. I know they are a free advice service but I can't help feeling that if I tell them my salary has doubled they will take every last penny. I understand that my debts are a priority and i have every intention of paying, however up until now (well untill I get paid) we have been really struggling and could really do with having an extra couple of hundred pounds a month for a bit of breathing space.

TIA x

You will need to pay your creditors off pro rata - you can't pay some off completely & not others. I would ring them , explain the situation & pay more off each month to all of your creditors.

hi Red Helen thanks for that.

The reason I wanted pay off some was that I have 3 creditors on my DMP to whom I ow small amounts but have had no end of red letters and court threats about one for £100 one for £250 and one for £600 and just thought if i paid those off I could start making over payments on the loans I have which total a further 17k who funnily enough have accepted the offer from PayPlan and have since left me alone.

owe*

Hi rhirhi what redhelen said is spot on. You can't pay a creditor in preference to another. I'm talking non priority i.e. credit debts here not your utilities, rent, council tax, etc (those are priority debts). If they're harrassing you, you can complain but that's no reason to give them preferential treatment.
Re increase in income: you must tell Payplan. There's bound to be a term in the DMP that you signed that says you must inform them of changes in income. They'll want to do another financial statement and work out your increased disposable income. The surplus will be offered pro rata to all your creditors.
Good luck