Changing to a Self-Managed DMP

Cekaelta

Hello,

I have a couple of questions for those of you who self-manage a DMP. My partner has been on a DMP for a few years (started just after we started going out) with a company that charges. I have convinced him he needs to change to a free DMP by showing him just how much that monthly charge is over a year and the effect it could have on his debt-free date and we are currently deciding whether to try to self-manage. Has anyone switching from a managed DMP to a self-managed had any problems? Up to now the DMP has been a very smooth one as the company has dealt with all communications (but the flip side we often have no idea of the details of what is going on, exactly what's owed etc and I am keen to change that), but my partner is worried changing now (to either self management or to a free company) could make things a lot more difficult than they have been.

The other main question is we've been looking at the NED CAB resources for self-management-the example financial statement has both partner's income details etc. Would we be able to use this system but leave my details out of it? This is the current set up of the DMP and we would like to keep it if possible (these debts are from before we knew each other & I need to be able to save money as I am a PhD student whose funding will run out before I have finished so I need to make sure I have money to cover that so I don't get into debt myself!). I know I am not liable for my partner's debts but it just seems all these resources and financial statements are based on household incomes and expenditures so it feels like we are lying filling them in with just his information.

Thanks for your help

matttye

I'll let someone else comment on the self-managed DMP aspect, but has he considered contacting a debt charity like Stepchange?

moohound

I would switch to step change or another free provider, then you still have the option of self managing at a later date, you might need to give the paid DMP company a period of notice, as stated in the terms and conditions.

Cekaelta

He has-he's been to the local CAB and they are willing to set up a DMP to take over from the current one. Stepchange didn't seem to work for him (or the online thingy at least)-his petrol costs are too high and his leftover income is too low. We are just wanting to consider all options and after a couple of years of not really being kept informed of what's going on with the current DMP anything that gives him control over what is happening seems like a good idea to me, but we want to explore the options a bit more first.

catandy

same position for me ref stepchange and disposable income and my expenses that are needed as part of my business so I'm going the self managed DMP route with NED CAB which to date has been painless.

I'm only using my income (not accounting for anything I get from ex who is a lodger and pays intermittently) and working from my basic income not commission as its not guaranteed.

NED CAB is simple to use and its just getting myself organised that has taken a bit, big filing box so I can keep record of all the correspendence back and forth and follow thru the steps on the NED CAB as I need to and track everything on the diary (so I dont miss anything).

Of my 9 creditors all have accepted my offer of payment and all but 2 have frozen all fees and interest. I'm going to let the payments bed in for a few months then next task for me is to get these companies to play nicely and stop their charges as well. Good thing is my balances on most of my debts will start dropping from month 1 plus I have complete control over whats going on and I'm not paying someone for the privelidge of doing it for me.

Short answer - do it yourself. No one will look after your money better than you so why pay someone to do it? best of luck with what ever you decide to do

Hopelessly_Hopeful

Hi

I agree with Catandy, no one will look after your money better than you.

There may be hassle but nothing you cant sort.

I was very grateful for the help from SC but for me they are little more than a distributor of the cash, they don't deal with creditor hassle or fight your corner to get interest stopped.

Hard to comment further without knowing current debt and amount payable on the DMP.

BTW you can have higher allowances for things like petrol, you just have to justify it.

I am 3 years into my plan, I went self managed 4 months ago. Had the odd little rumble but nothing much. Easy peasy.

Good luck

HHx

System

Cekaelta wrote: »

He has-he's been to the local CAB and they are willing to set up a DMP to take over from the current one. Stepchange didn't seem to work for him (or the online thingy at least)-his petrol costs are too high and his leftover income is too low. We are just wanting to consider all options and after a couple of years of not really being kept informed of what's going on with the current DMP anything that gives him control over what is happening seems like a good idea to me, but we want to explore the options a bit more first.

Hi Cekaelta,

Hope you don't mind me jumping in...there's nothing wrong with self-managing a DMP, it's definitely better than paying a fee-charger.

When your partner did Debt Remedy online it may have said his petrol costs were too high but everyone's situation is different - if he was to give us a ring and go though a budget with a debt advisor we might be able to make amends to other areas of his budget. After then he could decide whether to self-manage or not.

The number is 0800 138 1111 if he wants to give us a call. (Open 8am-8pm Mon-Fri, 9am-3pm Sat).

Either way - good luck with it!

North_East_Derbyshire_CAB

catandy wrote: »

same position for me ref stepchange and disposable income and my expenses that are needed as part of my business so I'm going the self managed DMP route with NED CAB which to date has been painless.

I'm only using my income (not accounting for anything I get from ex who is a lodger and pays intermittently) and working from my basic income not commission as its not guaranteed.

NED CAB is simple to use and its just getting myself organised that has taken a bit, big filing box so I can keep record of all the correspendence back and forth and follow thru the steps on the NED CAB as I need to and track everything on the diary (so I dont miss anything).

Of my 9 creditors all have accepted my offer of payment and all but 2 have frozen all fees and interest. I'm going to let the payments bed in for a few months then next task for me is to get these companies to play nicely and stop their charges as well. Good thing is my balances on most of my debts will start dropping from month 1 plus I have complete control over whats going on and I'm not paying someone for the privelidge of doing it for me.

Short answer - do it yourself. No one will look after your money better than you so why pay someone to do it? best of luck with what ever you decide to do

Hi catandy

Cheers very much for the positive feedback it is more than appreciated and hopefully can go towards others who wish to self manage where appropriate and full advice has been sought.

We hope that things continue to work out as should be the case if you self manage or not.

http://mymoney.nedcab.org.uk/moneyadvice/dmptour.asp

Just for info purposes we are currently in the process of updating the Mymoneynedcab online site adding extra features along the way.

It has now become an ongoing never ending job

Take Care

NED-CAB

North_East_Derbyshire_CAB

StepChange_Jess wrote: »

Hi Cekaelta,

Hope you don't mind me jumping in...there's nothing wrong with self-managing a DMP, it's definitely better than paying a fee-charger.

When your partner did Debt Remedy online it may have said his petrol costs were too high but everyone's situation is different - if he was to give us a ring and go though a budget with a debt advisor we might be able to make amends to other areas of his budget. After then he could decide whether to self-manage or not.

The number is 0800 138 1111 if he wants to give us a call. (Open 8am-8pm Mon-Fri, 9am-3pm Sat).

Either way - good luck with it!

Hi Jess

How you doin?

We entirely agree on self managing DMPs

Have you and your colleagues looked at the Institute of Money Advisers award winning NED-CAB completely FREE online system ?

http://mymoney.nedcab.org.uk/moneyadvice/dmptour.asp

We have an online budgeting system too that will soon link over to the online DMP and much more

http://moneysmart.nedcab.org.uk/

We, other agencies and many clients plus a growintg number of others across the country are successfully using our online DMP resource

It does all the letters, financial statements, keeps a record, has trigger expenditure allowance figures, can be easily updated and amended by the user in the event of changes in circumstances etc, and it saves everything online.

We also have an online debt remedy resource & information tool that only takes a few minutes to access.

http://mymoney.nedcab.org.uk/moneyadvice/index.asp

Do you refer or recommend our online DMP resource to any of your clients or callers/

You and your colleagues are welcome to give us a call if necassary.

Take care

NED-CAB