Have I just done the right thing???

ali.rtw.traveller

Hi all
This is my first post so forgive me if it's a bit long winded.

I have a total of £8623 in unsecured credit card debt, plus a £500 overdraft and a further £634 owed to family.

Back in January this year I was all for sorting out my debt and tried getting various loans to consolidate my debt which didn't work out, I then came across Valour Finance debt management company, spoke to them all sounded great they'd help me by speaking to the cc companies and getting reduced payments, freeze interest etc. On a bit of a, stupid, whim i took it out with them not really thinking about what they might be charging each month and what would actually be going towards my debt. Have paid them for a couple of months now and have noticed they are charging £29 a month.

I've been having a good read through all of these forums the last week or so and seen some people are on self-managed debt management plans so today i spoke to my 3 credit card companies, MBNA were great they've agreed i can pay my reduced payment to them without going via Valour and will still freeze the interest and charges. Capital One and Santander have agreed interest and charges will be frozen but i need to fill in expenditure forms which they're sending out in the post and they will then decide. I can't see this being a prblem as after all they have agreed lower payments for me anyway through Valour, and I will in actual fact be offering them a bit more than what they were getting through Valour as between the 3 companies they'll be getting the extra £29 i was paying for Valour's services.

Spoke to Valour, they're obviously not happy for me to cancel and but i'm not bound by anything so just need to send written confirmation that i wish to cancel my agreement with them.

So what I'm asking is whether a self managed plan is the best way forward? I have the standing orders in place to pay the 3 card companies the day after pay day.

Credit Cards
MBNA = £1472 through dmp was paying £22.70, hope to pay £30
Asda/Santander = £1918 through dmp £30.69 hope to pay £40
Capital One = £5231 through dmp £76.73 hope to pay £90

I hope I've covered all the necessary info, thanks in advance for your help

jonjamie1970

Youv'e done the right thing as you dont need to pay anyone to do this, its just £29 less per month that wasnt going towards your debts, speak with one of the companies that provides a free service such as CCCS or Payplan if you are unsure about managing it on your own.

ali.rtw.traveller

Thanks for your quick reply jonjamie. If i were to use Payplan or something along those line am I able to make extra payments to the cc's like I would if I was self managed as with the previous company they just said I'd need to save it all up and pay off one card rather than paying little bits here and there as I just know if the money is sat there then there's every chance it'd get spent.
Do the companies act any differently if you are self managing rather than going through a dmp company?

sickasachip13

I think you've definitely done the right thing - why pay for something either you can do yourself or you can get via a free organisation (CCCS or Paypal for example). We've been with CCCS for about six months, they've been fabulous. Last time I spoke to them, to do a review, they did mention (I'm pretty sure I remember this correctly) that if we had more money one month then we could up the payment. Ask Pavan or Sue (from CCCS) on the sticky thread that says something like 'Ask a debt counsellor for advice'.

Good luck.

eyeopener2

You've done the right thing. When I first started reading your post I feared the worst. Well done, and welcome aboard!

ali.rtw.traveller

Oh this is good to hear, just popped the letter to Valour in the post so now i can get on with sorting out the rest of my finances. thanks for the support.

Hannah_10

I think if your situation is straight forward and you are happy to self manage then do so. You wont really gain anything by going through CCCS or Payplan, 3 creditors is fairly simple.

What I will say though is take on a little atitude, it'll serve you well. You don't ask them if you can pay more, you tell them you will pay more, safe in the knowledge that they have not a leg to stand on if they make it difficult. So your letter to all three should read something like the one below. If you fill in their forms then they WILL send it back with stuoid comments on it like that you could live without a TV to save the licence fee and you have no need of dog food if you sell the dog- don't bother. They don't have a legal right to know this stuff, they do not need it to make a decision, they lied! The decision is made for them by legal precident- which is on your side, they just want another chance to squeze you. No deal! Also never phone them, ever, ever ever ever. Write every time. Read: The Golden Rule and safe payments.

Dear Sir/Madam,

Ref:xxxxxx-x

I am writing to let you know I have cancelled my contract with my previous debt management company Valour Ltd. I'm sure you will be delighted to hear this means I am now in a position to increase my repayments to you. I can increase my repyaments to you because I no longer have to budget for the monthly fee Valour previously charged. I will be managing my own debt repayments from now on and I will be paying you £xx per month by standing order on the xxth of the month, begining xxth of April 2011. This, as you are aware, is an increase of £xx on the previously agreed £xx per month.

Yours Faithfully.