Can I sort my own DMP

moneymoron1

Hello everyone,

I think I now need to take the advice and look at a DMP. My question is, can I sort my own out?

I have just been on the phone to a helpline and they keep my first two payments and effectively default all my accounts. Can I avoid this?

What are my chances of dealing with all the co panties directly and getting them to agree to me requesting the interest to be frozen and to accept a monthly payment?

Thanks

Mm1

Deep_In_Debt

Yes you can. Check out National Debtline website who offer advice and template letters that you can use to write to your creditors.

Alternatively speak to StepChange who are a debt charity and will not charge you, or Payplan who also offer fee free dmps. Stepchange also have a debt remedy online tool that you can use to put in your details and you can find out budgets etc and no obligation to go with them.

No need to pay these sharks who will take a cut each month also thus keeping you in debt for longer and making a lot of money out of you.

moneymoron1

Thank you, do step change send a bill at the end, I did hear that they do but not had it confirmed.

Can you deal with the companies on the phone?

Deep_In_Debt

Nope they don't send a bill as they are free so not sure who you got your info from...probably the fee charging company to put you off going to Stepchange! lol

Yes, you can deal with them on the phone and they have an advisor on here too...check out the stickies at the top of this page.

moneymoron1

I think I will give them a call tomorrow.

I meant would the companies I owe money to deal with me on the phone and agree payment plans?

Deep_In_Debt

Yes, they would but always best to deal with them in writing hence my suggestion of National Debtline website for info you will need.

No reason why you can't go it alone. You could always start with Stepchange to do the initial legwork and negotiate on your behalf and then go it alone when you feel ready. DMPs are not legally binding on either party so you can leave at any time.

moohound

Quite a few DFWs started with step change or payplan and then went it alone, so it is a good option. Don't go with a fee paying company though, they won't look out for your best interests only their profits.

ciderwithrosie_2

I managed my own DMP for over a year (then switched to an IVA).

• I got up to date balances from all my creditors
  I switched bank accounts before any defaults showed up on my credit file
• I worked out a Statement of Affairs
• I found a pro-rata payment calculator online and it worked out how much to pay each creditor from what I had left as disposable income
• I wrote letters to each creditor, outlining our family situation, how we had got to this point and how much I proposed to pay them for the foreseeable future - I was totally honest with them as I had nothing to lose
• I sat back and waited for their responses

I had a bank loan, 3 credit cards and 2 catalogues. All but one of the catalogues (the 2nd least amount) agreed to the payments and froze interest, to be reviewed in 3 or 6 months. The catalogue continued harrass, add interest and passed the debt on. They wouldn't play nicely so in the end I went for the IVA.

moneymoron1

Is it possible to do this without defaulting on any payments and also what affect does this have on your credit rating once you've paid it all back?

moohound

I think they will issue defaults if you are paying less than the minimum agreed amounts.

Defaults are issues after a few missed minimum payments, I can't remember how many.

Defaults drop off after 6 years, if you have multiple defaults your credit rating is trashed until they drop off. They can only default you once on each account I believe.

matttye

moneymoron1 wrote: »

Is it possible to do this without defaulting on any payments and also what affect does this have on your credit rating once you've paid it all back?

If you can afford the minimum payments on all of your debts and also can afford the interest (i.e. you can still decrease your debt with the interest you're being charged), then, yes, you can avoid defaults.

Creditors will usually only agree to freeze interest if you come to a repayment plan with them and pay less than the minimum payment each month. However, if you do this they will add defaults to your credit files as it's violating the terms of the agreement (not meeting minimum payments).