A TPP is suggested to give you a breathing space on your debt payments sometimes. This is designed for people under temporary financial difficulty. However, it’s not certain that you won’t be facing any unfortunate events in the succeeding months when managing a TPP. The only way to cushion any changes is to make sure that you are prepared in case it happens.
When you’re on a TPP or temporary payment plan, you’ll be able to gain an understanding of what to expect ahead and how you can deal with it. Below are some of the ways that can help you manage a TPP for it to run smoothly.
Reviewing your Budget Regularly
You can only expect that the prices or commodities and basic needs can gradually increase over time. Hence, you have to take this into account when creating your budget. It should also be considered when your income is reduced due to unemployment, job loss or reduced hours at work.
You must inform your TPP provider when there are changes with your essential living costs or income. When you regularly review your budget, it can help you determine areas that you can eliminate, cut off or reduced. If this is possible, it could mean extra money that you can use to pay off your debt faster or save for emergencies.
Sticking to Your TPP
When you’re on a TPP, your creditor can still reach out to request for higher payments. Thus, it is crucial that you stick to your budget and to the agreed payments. Do not be pressured with making higher payments that you cannot afford. Should there be any issues that may arise, you can talk to your TPP provider.
Before starting a TPP, your provider will put together a budget to determine a realistic approach in solving your debt problems. You can send a copy of the budget to your creditors to convey how much you’re making each month and how much you can afford to pay. This way, your creditors will understand that the payments you’re making are adequately realistic.
Keep Your TPP Provider Informed
Your creditor can forward your debt or sell it to a debt purchaser or a debt collection agency. This is a part of the debt collection process and is usually in practised. When this happens the collection agency will contact you by any means to inform you about the debts and payment details.
You have to inform your TPP provider in this matter so they can update your TPP and forward any payments to the collection agency or new company. You can ensure keeping and preparing the letter or email from the collection agency to you ca give the details to your TPP provider.
Include All Debts in Your TPP
Your TPP is in place to help your manage your debts. Therefore, you must include all your debts to ensure that you won’t struggle to make any payments. If ever you missed a debt on your TPP, make sure to contact your TPP provider right away.
Save Money and Increase Income
You can check for alternatives or opportunities that can help you save money. This can include:
- Comparing prices and determining where you can save more in terms of food and other essential needs
- Switching utilities or checking for a better deal
- Cutting back on your subscription or ending contract that you’re not using
- Checking for entitlements in terms of benefits and government grants
Focus on the Progress of Managing a TPP
Managing a TPP is essential until your situation gets better. As you perceived that your situation is becoming better, you have to stay focus on your TPP up until you’re stable.
Also, the progress on your TPP relies on you. If you keep chasing for the positive things to happen over a short period, it would feel unattainable. Instead, you can focus on your TPP and check if there’s progress. Once you see progress, this should be enough to keep you going. Managing a TPP can be daunting sometimes but doing something to clear your debts is something you can boast about.
Avoid Credit and Loan when managing a TPP
Getting a new credit or loan is against your TPP terms. If you think of getting a new loan or credit even if there are no additional costs, it could mean that your TPP isn’t working with your expenses.
However, if there are unexpected costs, you just have to contact your TPP provider the soonest possible.
Should a TPP right for me?
If you think a TPP is right for you, do not get into a decision right away. Make sure you seek expert advice from an organization like us. We can help you evaluate your choices and find out which debt solution would suit you best.