Considering stopping my DMP through StepChange. Advice needed please

TimeToDoIt

Hi there, I hope someone can help.

I entered into a DMP with stepchange in June 2014. Made my first payment to them 1 July. Missed the August payment. Have made payments september, October and November and will be able to pay in December.

I have had a few problems, probably because of the August missed payment (my fault I know)

1. First my largest credit card, barclaycard wrote to me asking me to make up the missed payment. I spoke to stepchange who said forward the letter to them and they would deal. So I did.

A month later I got another letter from barclaycard whacking a huge amount of interest on and demanding a huge "minimum payment". I called them and they told me the arrangement had been broken and so we were back to normal terms but I could set up another arrangement with them. I did this via email this month myself and they are now happy to accept the amount put forward originally by stepchange again.

2. My other barclaycard (only a small balance) hasn't acknowledged the DMP at all and is still charging interest and asking for minimum payments. Turns out the min pmt is only about £20 more than what SC give them so I've just given that extra the last 2 months.

3. Natwest bank have just passed my overdraft account to moor croft and I need to call them tonight. We can apparently talk about a repayment arrangement.

4. SC pay on around the 25th. 2 of my cards request payments by 17th so every month they are calling me and I'm having to tell them they'll have it in a week.

So that's the background!

Thanks for reading so far.

My question - should I stop doing this through SC? If the amounts have been agreed, can I just make payments direct now? I can then do this on the 1st of the month and everyone will have their payments before the due day.

The one that is asking for £20 more each month, I'll just go back to paying min payment.

And maybe I can renegotiate a smaller monthly amount with moorcroft.

Has anyone else done this? Is it a good or bad idea ?

Help me please!!

Tixy

2. I wouldn't keep on topping up the payment to the one card.
3. I wouldn't call and talk to moorcroft.

You could either stick with stepchange and wait for it to settle down - send a letter asking for all communication to be in writing and stop answering any phone calls from them and stop having any negotiations simply refer them to stepchange each time.

Or you could cancel the DMP with stepchange and do your own self-managed DMP, but I would make sure you do a 'proper' DMP and pay them all a fair pro-rata share - the online CAB tool is brilliant for doing a self-managed DMP. I'd still send them the cease telephone communication letters though - per this link - https://forums.moneysavingexpert.com/discussion/4713757

TimeToDoIt

Thank you Tixy
I think maybe a self managed, paid on the first of the month, DMP may be the way to go

Nargleblast

The credit card companies know that Stepchange pay out on the 25th, they are just trying it on to get extra out of you. I myself would stick with Stepchange, send any letters received on to them, and refuse to talk to creditors on the phone, just refer them back to Stepchange. In time it should settle down.

If you decide to go down the self-managed plan route, it will not be easy. There are people on here, though, who do just that - find the DMP support thread for advice.

Time_to_face_the_music

Nargleblast wrote: »

The credit card companies know that Stepchange pay out on the 25th, they are just trying it on to get extra out of you. I myself would stick with Stepchange, send any letters received on to them, and refuse to talk to creditors on the phone, just refer them back to Stepchange. In time it should settle down.

If you decide to go down the self-managed plan route, it will not be easy. There are people on here, though, who do just that - find the DMP support thread for advice.

Why don't you think it's easy? It has been remarkably easy and successful for me and I managed to get interest stopped that Stepchange (then CCCS) couldn't.

Another vote for the NED CAB self managed DMP, it's absolutely brilliant and the National Debtline template letters are superb too. Links below:

https://nedcab.cabmoney.org.uk/dmp.asp

https://www.nationaldebtline.org/EW/...s/default.aspx

Time_to_face_the_music

TimeToDoIt wrote: »

Hi there, I hope someone can help.

I entered into a DMP with stepchange in June 2014. Made my first payment to them 1 July. Missed the August payment. Have made payments september, October and November and will be able to pay in December.

I have had a few problems, probably because of the August missed payment (my fault I know)

1. First my largest credit card, barclaycard wrote to me asking me to make up the missed payment. I spoke to stepchange who said forward the letter to them and they would deal. So I did.

A month later I got another letter from barclaycard whacking a huge amount of interest on and demanding a huge "minimum payment". I called them and they told me the arrangement had been broken and so we were back to normal terms but I could set up another arrangement with them. I did this via email this month myself and they are now happy to accept the amount put forward originally by stepchange again.

2. My other barclaycard (only a small balance) hasn't acknowledged the DMP at all and is still charging interest and asking for minimum payments. Turns out the min pmt is only about £20 more than what SC give them so I've just given that extra the last 2 months.

3. Natwest bank have just passed my overdraft account to moor croft and I need to call them tonight. We can apparently talk about a repayment arrangement.

4. SC pay on around the 25th. 2 of my cards request payments by 17th so every month they are calling me and I'm having to tell them they'll have it in a week.

So that's the background!

Thanks for reading so far.

My question - should I stop doing this through SC? If the amounts have been agreed, can I just make payments direct now? I can then do this on the 1st of the month and everyone will have their payments before the due day.

The one that is asking for £20 more each month, I'll just go back to paying min payment.

And maybe I can renegotiate a smaller monthly amount with moorcroft.

Has anyone else done this? Is it a good or bad idea ?

Help me please!!

Personally I would go for the fresh start and use the NED CAB self managed DMP, link in post above.

Everything you need is there, I&E, letters to send to creditors etc, though I have adapted a few from National Debtline and have my own file of personalised template letters.

At the same time as you restart, send out letters of complaint about any interest/fees being charged and follow up with the FOS if you don't get the result you want.

Anything else, please just ask me on the DMP & Mutual Support thread and I will be more than happy to help plus you will get all the advice and support of the great people there.

TTFTM x

Nargleblast

I always thought that companies like Stepchange, Payplan etc had more clout when it came to getting interest payments stopped and getting creditors on board, rather than Joe Public going it alone. I stand corrected if that is not the case. If the OP is up for the challenge of doing their own plan and dealing with creditors' letters and phone calls, then I would say go for it.
If however someone finds that kind of thing too stressful, then DMP companies can be a big help. Either way, the DMP support thread is worth a visit.

Timetofacethemusic - just noted your signature - some impressive numbers there! 87% cleared in less than three years - well done!

glentoran99

Nargleblast wrote: »

I always thought that companies like Stepchange, Payplan etc had more clout when it came to getting interest payments stopped and getting creditors on board, rather than Joe Public going it alone. I stand corrected if that is not the case. If the OP is up for the challenge of doing their own plan and dealing with creditors' letters and phone calls, then I would say go for it.
If however someone finds that kind of thing too stressful, then DMP companies can be a big help. Either way, the DMP support thread is worth a visit.

Timetofacethemusic - just noted your signature - some impressive numbers there! 87% cleared in less than three years - well done!

nppe not at all

Puzzcat

Stepchange are fantastic at setting up the dmp, but at the end of the day they ask the creditors to freeze interest, and if it isn't then its down to yourself to do battle. I was lucky in that 8 out of 9 of mine did freezer and with the other one I took them to the FOS.


The debts are still yours despite the assistance of a dmp provider and it is still your job to check statements and keep your providers balances up to date. The provider will ASSUME interest is frozen...


Puzz. x

Time_to_face_the_music

Nargleblast wrote: »

I always thought that companies like Stepchange, Payplan etc had more clout when it came to getting interest payments stopped and getting creditors on board, rather than Joe Public going it alone. I stand corrected if that is not the case. If the OP is up for the challenge of doing their own plan and dealing with creditors' letters and phone calls, then I would say go for it.
If however someone finds that kind of thing too stressful, then DMP companies can be a big help. Either way, the DMP support thread is worth a visit.

Timetofacethemusic - just noted your signature - some impressive numbers there! 87% cleared in less than three years - well done!

I know many may/will disagree but I feel when you are funded by the financial industry, you have their interests at heart, rather than that of your clients.

We are lucky being able to pay off our debts via our joint salaries but are also proud of our commitment to debt clearance. Life will begin properly again once we are debt free.

TTFTM x

MallyMon

I have to say that I cannot praise StepChange highly enough. I contacted them two years ago when I was at my wit's end with debt. No way I could possibly have cleared it because my circumstances had changed and I felt that there was nothing I could do. I am now debt free but I had to make changes that were not so easy at the time, and I had to ensure that I not only made a budget but kept to it. Sounds easy but I'm not an organised person. I understand that a lot of people may be able to self-manage a DMP but I'm not one of them. StepChange is a legally recognised organisation who can and will act on your behalf. If creditors do not accept any terms or conditions, then StepChange should be notified. I was advised that some creditors may continue to write and demand things, and I was even contacted by one creditor who said that they accepted the arrangement but that they may still write to me asking for extra payments - which they said I should ignore! It's very weird but if you are paying something, and it's been agreed, then nobody can have any gripe against you. I have to agree with others who have said that it's best not to pay one creditor more than others just because they make a lot of noise. Good luck with your DMP. You can do it! I did.