payplan or stepchange

vics1928

Hi

What makes each different and who likes who

Neil_948

vics1928 wrote: »

Hi

What makes each different and who likes who

Payplan I've never heard of.

Step change are a not for profit debt charity so in other words they don't charge a fee every month £1 paid is £1 off your debts.

Stewart_78

I'm with payplan and to be honest if I were to start again I would probably go with stepchange. They have been OK but I often wonder who they are working for. They seem to be always trying to get me to change my house insurance etc. etc. They they have this Red Potato thing which offers you credit on vastly overpriced cars etc. to be taken out of your DMP. OK, so for some it's a very last resort but at the end of the day you are paying way over the odds for a car and paying off your debts more slowly.

Dunno, I think they are both good but I suspect Stepchange have the debtor's interests more at heart. I don't feel strongly enough to switch though.

cynicalgit_2

They are both sponsored by the Financial Industry and the banks.
They are just the nice smiley face of the collection industry.
The Banks love them because they have a good collection rate.
Self manage is the answer and avoid that end of plan additional interest and charges.

Monkeyballs

Hi,

I'm currently with Step Change and they have been excellent all along but you need to be aware that if a creditor carries on charging then it is up to you to challenge the creditor.

I try to manage it as much as possible and am really just using SC as a tool to manage my own DMP now I have a little experience and have seen comments (such as Cynicalgit's above) I will probably be looking to leave SC and manage my own within the next 6 months...

A lot of people use Payplan, I'd never heard of them before this site but to be honest I'm glad I didn't as a few people have posted recently about various problems they have encountered... But I'm sure there are plenty who would swear by them too!

I think the difference is the way in which amounts are allocated? Payplan allocate according to debt while SC go by minimum repayment amounts (or something like that, someone else should be able to explain it better).

MB

Stewart_78

I think Cynicalgit is bang on. It's the friendly face of the banks. They are trying to get money out of you and trying at the same time to keep you n debt and sell you over-priced products. At least that is my experience of payplan, I can't speak for stepchange, I thought they were something to do with the CAB?

I'll stick with payplan for the time being. I am trying to get all my defaults lined up and then will self manage or maybe not pay them at all. I'm guessing all my debts are unenforceable.

Payplan is a means to an end for me. If you are on side with them, the banks comply. It buys you time to get a plan together.

vics1928

Thanks for all the advice!! I just can't seem to work out who is the best out of them both as this is going to be a long process I don't want to make the wrong choice

Sinhanada

I use Step Change and they are a charity. The way they work is simple. They take your monthly payments on the 1st of each month and make payments to your creditors on the 25th of each month. That way they gain the interest from your payment. You do not pay a fee.

They also do not charge you a setup, or ongoing management fee. If you run into difficulties in one month, call them and they can help.

I must say I prefer this method and have been with them for four years (I think it's four years anyway!). I'm in my last year now and without their help and support I'd probably have gone back to my old ways of Wonga and Quickquid.

Tixy

vics1928 wrote: »

Thanks for all the advice!! I just can't seem to work out who is the best out of them both as this is going to be a long process I don't want to make the wrong choice

Either of them will offer to run a DMP for you with all of the money you pay going directly to your creditors.

Stepchange are a charity but payplan are not but both are recommended by MSE.
There are reports of payplan trying to sell you additional products/insurances etc but if you don't want them just say no.

I know some people have said that the 2 treat some disability type benefit income slightly differently when working out your statement of affairs - so that could possibly be a factor for some people.

There is also an option of a self-managed DMP which may suit some people, although it is certainly not for everyone (some people don't feel able to handle their creditors and be able to say no to them).

I'd possibly speak to both and go with whichever you feel you get along with best. Just steer clear of anywhere that will take a cut of your monthly payments.

Good luck whichever you decide.

Mr_Mink

I'm with Payplan and can't really fault them. They do have some sales malarky but when my car insurance renewal came up I didn't hear a peep from them.

The way I see it is similar to Monkeyballs. They are a great resource but whoever you go with, be sure to get involved yourself once you're comfortable and ensure that you're going low to no interest.

FYI, Payplan divvy up your payment based on the amount owed, so if 75% of your overall debt is to creditor A, they'll get 75% of your monthly payment.

vics1928

Hi can anyone tell me how step change allocate payment