setting up own DMP and contacting companies

Brewstersmum

Hi

ive been on a paid DMP for a couple of years and thought I was doing ok. I had no hassle from creditors and it was all going well.

I changed to step change about 3 months ago as I saw no use paying a different company. since I have done that I have been receiving statements and letters as no payments have been made although I have paid step change 3 times. also I checked my statements and it seems over the past 2 years I have been paying £12 admin charges to my creditors practically every month for letters so my money is not even paying off my debts!!!

ive decided to contact all my creditors myself and offer them a nominal amount per month to clear my debts. its more than I was paying on a DMP so..........

has any one else done this?

will they stop the constant admin charges?

is there any legal wording I need to use in my conversations to make them more likely to accept my offers?

the debts arnt huge, just smallish amounts to a few companies

Depth_Charge

Brewstersmum wrote: »

Hi

ive been on a paid DMP for a couple of years and thought I was doing ok. I had no hassle from creditors and it was all going well.

I changed to step change about 3 months ago as I saw no use paying a different company. since I have done that I have been receiving statements and letters as no payments have been made although I have paid step change 3 times. also I checked my statements and it seems over the past 2 years I have been paying £12 admin charges to my creditors practically every month for letters so my money is not even paying off my debts!!!

ive decided to contact all my creditors myself and offer them a nominal amount per month to clear my debts. its more than I was paying on a DMP so..........

has any one else done this?

will they stop the constant admin charges?

is there any legal wording I need to use in my conversations to make them more likely to accept my offers?

the debts arnt huge, just smallish amounts to a few companies

Hi

As you are no doubt aware a Debt Management Plan is an informal arrangement so that basically speaks for itself.

If you administer your own Debt Management Plan in line with the standard industry accepted procedure then creditors should treat you the same as if you went with a provider (the OFT guidelines on debt collection clearly state this)

There is a now widely used Citizens Advice Online Self Administering Debt Management Plan system with many people successfully getting interest and charges frozen and stopped.

It is free to all, does all the letters, financial statements, has industry accepted guideline expenditure allowance figures, saves everything, flexible and you are in control.

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

http://mymoney.nedcab.org.uk/moneyadvice/dmptour.asp (example completed plan)

http://mymoney.nedcab.org.uk/moneyadvice/ (debt remedy resource, advice & information tool)

The above are looking at making their system easier and smoother to transfer over to self managing and hopefully news on this will be in the not too distant future

Many people in debt advice are looking to make it easier and more flexible for people to manage their debts. This includes agencies (and the fee chargers with their new protocol) working with creditors on the subject of creditors accepting offers and freezing charges and interest.

If advice has been given and a Debt Management Plan is appropriate then once set up it is not that difficult to manage and maintain for those who feel that they can.

Paying someone just to take a cut every month out of your payments (or agencies being paid to distribute creditor payments etc) is what basically happens once a plan is up and running.

Self Managing is not for everybody (however there are many who basically have little choice other than to do it this way)

There are other self help systems

Best of luck and your choice at the end of the day.

My take

Brewstersmum

Thank you

I have contacted a couple of creditors today and they have accepted my proposals. I feel loads better knowing that I will of paid my debts off in half the speculated time and I will know how much I actually owe.

also I have 2 debts that are open to settlement figures, as these are only very small debts is feasible that one month I may actually be able to clear one at a reduced rate. that's something I was never offered on a DMP