Going it alone- DMP

stephy110288

Hi, I have explained in another post that i am in a debt management plan but with a company, purely because cccs and payplan didnt want to help me and just told me to go bankrupt because half of my income is student grants as i am a full time student. i thought this was silly because i work really hard in the evenings and weekends so i have around £200 spare each month.
i've decided i am going to run my own debt management plan, and so far i have set up a spreadsheet with my new proposed payment. each creditor will be gettin around 15% more because i'm not going to be paying the company, so hopefully they wont have a problem with it.

could anyone please tell me what documentation i need to send to each creditor to start this off?
thanks

Tixy

You can find quite a few template letters on national debtline.

Initially you would need to send them a letter stating that you will be taking over your debt management from Xcompany and detailing your new monthly repayment offer. You probably would enclose an income & expenditure statement at this point (because if you don't they'll certainly ask for it).
You may also want to include a bit about keeping all contact in writing and asking them not to contact you by phone.
If you haven't already I would also ask for an up to date statement of account from the creditor and their bank details so you can set up a standing order.

Good luck

stephy110288

Thats great thank you. It sounds like it shouldn't be too stressful once its all set up. Its weird that im stressing because i'm going to be paying them more and i know they are going to make it difficult. how does that make sense???
Also the company i was with had got all my creditors to freeze all the interest and charges, will they stick with this do you think

Tixy

Hopefully so - remember to include that in your letter as well.

Just one thing - are you certain that all had frozen interest?, some commercial DMP companies have been known to [STRIKE]lie[/STRIKE] confuse/mislead a customer in to thinking interest had been frozen and its only when the customer gets a statement from the creditor which shows a higher balance do they realise interest was never frozen.

stephy110288

Most have been frozen, and the ones that are still within the credit limit are still charging interest but I think it's lower now. I keep an eye on all my accounts to make sure they are paying them
To be fair, I cant fault them, they sorted me out quickly when i needed it. but now i have made this spreadsheet and seen how much i could hav paid off by december if i do it myself, its making me think twice.
the templates on national debtline are really useful, i think i will be using them.
not looking forward to the mountain of paperwork that will arrive through my door though!