Want To Quit DMP

moore7354

I have been on a fee charging DMP, since 2009. I really want to leave them, mainly due to the monthly fee I am paying. I wish to self manage my plan as I resent paying the pay. The fee I feel would be put to better use at paying my creditors more money.

Has anyone got any advice on self management or guidance and the process on what happens when I leave the plan? At present I have no correspondance with any of my creditors. I am afraid that I will start getting threatening letters, demanding immediate payment!

However I am ready and prepared to take back control of my finances.

JM

Jinx

Hi There

The self-managed DMP is the same as a managed one; you're just doing it yourself....

You need to write to your creditors saying you are leaving the managed DMP and get their bank details.
Set up recurring online payments (standing orders) and pay them what you were paying before.
Keep in touch with your creditors periodically to reiterate you're happy to pay etc...

Only pay what you can genuinely afford, only communicate in writing; send by recorded delivery, keep all the mail and statements they send and pay without missing any payments.

You will get LOTS of mail from your creditors, all standard letters with lots of threats, demands for full payments, demanding you call immediately. You will get used to it and just end up filing them...

Once your self-managed DMP is up and running you will get used to it and its just checking your balances and the odd letter after that. I'm nearly at the end of a long self-administered debt free wannabe journey - you will get there too

moore7354

Hi, thank you so much for your post, that has really reassured me, however really not sure what step to take next; Should I write to my creditors first or inform my DMP company that I intend to leave? I am also not sure what their cancellation policy is, which I will need to find out.

And well done to you for almost clearing your debts, what a great feeling that must be. One day...........:-)

Jinx

Do you have an agreement? Dig it out and have a look. I didnt use a managed DMP (was too mortified!!) but I would imagine you possibly have to give maybe a months notice or something? You are paying for their services so cancelling shouldnt be too difficult. I would try not to miss a months payments so the last month you pay them have yourself set up to pay the creditors the following month....

It is quite scary getting the letters constantly through the door, but you do quickly recognise the empty threats as just that....but regular payments are essential in my opinion to keep you in the right. Please remember to ask for the interest to be frozen. I actually changed my phone number as I started getting a lot of calls; it just helped my stress levels. And over the years I have put my payments down as well as up as employment etc dictated. The time passes really quickly and you will realise you ARE in control. And of course this is an addictive and amazingly supportive site

moore7354

I seemed to have mis placed my agreement, very unlike me as I keep everything else financial together. I stopped answering my home phone a long time ago, maybe its time now to change my number too..

I have my monthly payment going out next week, so hopefully have it all sorted for April.

Thankyou once again :-)