Can I stop using a debt management company?

jellie75

Hi,
Really sorry if I've not posted in the right place..
In 2008 we had a financial crisis when our mortgage payments nearly tripled. We had lots of debt and our financial advisor recommended we use a debt management company to reduce our payments, which we did. It might sound daft but I've had a bit of a light bulb moment - I've suddenly realised that I have been paying them for FOUR years and my debts are not majorly reduced. I pay them £120 per month and they get £50 of that for their fees. I have never been very happy with that bit but I have let it carry on because it has seemed easier (?!) However at the moment with my husband out of work due to illness and my salary being the only money coming in - I work over 50 hours a week to make sure everything gets paid, I have become rather resentful that I have to pay this fee. I would rather be paying extra to my creditors. So my question really is this - can I just stop paying the debt management company? Can I ring up the creditors and offer more money if they'll let me pay direct? Or do I need to complete an SOA and effectively start again from the beginning? Any advice would be appreciated.

tattycath

https://forums.moneysavingexpert.com/discussion/4227993
Hope this helps.

beccals

Hi

I'd imagine that if you want to stop the plan you currently have, you'll have to ring them. It would be a good idea to ring the CCCS or Payplan who don't charge a penny, so the full balance is split directly between your creditors.

Motoko_2

Hi There,

Yes you can, I just have. I will now have from November an extra £53 to put on my debts this has brought froward my DFD by 6 months!

I am going to self manage, but if I get mucked about I will go to CCCS or payplan - the free ones

Good luck hope it all goes well.

jellie75

thank you everyone thats great!