Can i switch Debt Management Companies?

steve808

I've been in a dmp for 18 months with a company called 'debt fixers' and i have to say they have been very good.

They've managed to stop all the interest on my credit cards and overdraft and i just have to pay them 1 managable monthly amount.

The only problem is, i have to pay them a £35 fee each month for their service. So, I pay them £170 a month, but only £135 of that goes to paying off my debt.

Since starting the plan i have found out there are companies that offer free dmp, such as CCCS, but is it possible for me to switch my dmp over to CCCS? Will my creditors start charging me interest again during the switch over? I have a total debt of over £15,000 so just 1 month of paying full interest could cost me hundreds.

Has anybody ever attemted to swich dmp's? or know how difficult it is?

Frankie231

Not difficult at all. Just cancel your current DMP (28 days written notice is standard), then contact your creditors via post explaining that you are switching DMP companies so that more of your available funds go to them, rather than a DMP Company. During your 28 day's with your current company, contact CCCS and sort out a new plan with them.

podperson

Just write to your creditors explaining that you are changing dmp companies so they will get a slightly higher payment each month. Works out better for them so very unlikely for them to cause problems.