getting out of a debt management plan

kimbers0501

Hello, im new on here and wanted to know if anyone could help me? A few years ago, i entered into a debt management plan with Gregory Pennington as i was unable to cope with my creditors and the amounts i was being asked for. The management fee with them is around £30 a month which at the time i was happy to pay just to get my creditors off my back and get some money back to myself.
Anyway around 3 years on now, my debts have come down considerably (now owing around £2k as all the interest was frozen by the debt management plan. I feel like i want to take over my finances again now and use the £30 a month management fee to paying off my debts even more but am worried that if i come out of the program by creditors will then put interest back on or ask me for the full amount?!?! has anyone else gone through this or have any knowledge of the best way to do it

many thanks in advance
x:A

BlushingRose

I'm afraid I haven't a clue, but might I suggest you ring one of the free DMP providers and ask their advice on this (as well as any you might get here) as they're bound to have helped people like you before.

give_them_FA

Even if they do put interest on, it won't amount to £30 a month if you only owe 2K!

And as for trying to charge you the whole debt- not very likely if you give them the good news that you will be able to manage a bit more now you are not paying the go-between!

But if they do, a "Sorry but that's all I can give you take it or leave it!" usually solves the problem. They won't upset the applecart over the amounts you are talking about.

Tixy

I'd definitely ditch and manage your own DMP for now.
National debtline website is a good source for template letters if you are running your own DMP, or CCCS will provide you with help to run your own.

Write to GP and cancel the plan with them (I think you have to give 2weeks written notice) and then write to your creditors stating that you are no longer using GP and will be paying them direct yourself from now on. Then at the bottom of the letter advise them on the new, slightly higher repayment you'll pay each month.

There is no reason why this should trigger them to start charging interest again.

There are quite a few people running their own DMPs on the DMP support thread and the 'paddle' thread, links here

DMP Mutual Support Thread - Part 8
Without a Paddle - Help and support for those starting or continuing a DMP (part 3)

sickasachip13

As the others have suggested, ditch the company. As you rightly say, that fee could be going towards your debts. I know other people have been on here and decided to get rid of the debt company and have either gone on to manage their own or have gone with CCCS or Payplan instead (both free and CCCS is a charity). Do be prepared for the company to try and scare you with horror stories, just bear in mind that they want to keep you as you're making money for them, and they'll give you any old rubbish to try and make you stay!
SAAC

kimbers0501

thank you so much everyone for your comments! i really appreciate it and am going to do what you suggest and ditch gp and manage my debts myself x