Self Managed DMP

Mrs_Hutchins

Is there any disadvantage from doing a self managed DMP instead of using say Step Change or PayPlan?

Thanks.

Mrs_Hutchins x

Sazzie23

Mrs_Hutchins wrote: »

Is there any disadvantage from doing a self managed DMP instead of using say Step Change or PayPlan?

Thanks.

Mrs_Hutchins x

Hi Mrs H


I am with stepchange and the main advantages that I can see are ;-
-one single payment goes out each month and SC distribute it;
-SC inform the creditors what the payment will be - they have a bit of weight and recognition behind them
-they keep track of the payments


Advantages of self-managed - IMO
- you control the payments
- you decide how much each creditor receives
- you can encourage creditors to cut interest by keeping payments low


disadvantages maybe IMO
- you have to pay each creditor separately
- you are 'on your own' if there is a problem- like unexpected car expenses and you have to reduce payments
- you may have to work harder to get creditors to take you seriously.

DMP mutual support thread has many self managed posters, maybe help you out if you need it. Seen quite a few recommend NEDCAB for self managed help.


Hope this helps

National_Debtline

Mrs_Hutchins wrote: »

Is there any disadvantage from doing a self managed DMP instead of using say Step Change or PayPlan?

Thanks.

Mrs_Hutchins x

Hi Mrs_Hutchins

I'd say the choice often comes down to whether you are a hands-on type or more of a delegator. Creditors aren't automatically more likely to refuse offers from or to sue someone choosing one route over the other.

Sazzie's summary above is useful. Bear in mind that you can try one route and then if you don't feel it's working, try the alternative.

Dennis
@natdebtline

Depth_Charge

Hi

Just following on from others

Administering your own Debt Management Plan is becoming more & more popular.

Managing your own Debt Management Plan is getting easier and more accessible with the signs of using this method being very positive indeed and why not?

Creditors should treat you the same if you self manage or if you go with a provider (be it free or fee charger)

There are guidelines creditors should follow and now the Treating Customers Fairly (TCF) initiative is underway which in theory means it will become even easier & flexible to manage your own plan as basically the barriers of why you should go with a company look set to disappear (everyone is now going to help it would seem)

All the talk is of education, helping people who can to take control. things are changing on the debt management front and that's a fact.

Links below to the completely free independent, impartial Citizens Advice CABmoney Debt Management Plan resource that is now widely established and used that gives some of the pros & cons of self managing and info on genuine choice of providers & systems.

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

https://nedcab.cabmoney.org.uk/remedy_4.asp

https://nedcab.cabmoney.org.uk/dmptour.asp (example plan)

https://nedcab.cabmoney.org.uk/dmptour2.asp (example transfer provider plan)

http://cabmoney.org.uk/

Hope this helps

My Take

Best Wishes

DC

Growurown

I used Step Change and found them to be excellent but they wouldn't target the payments at creditors who still charged interest to get them paid off quicker. However it took all the stress and worry out of payments which I really appreciated at the time.

I have gone self managed now and like the flexibility it gives me to pay off the most expensive creditors first. However it does mean more work on my part if I need to make a reduced payment for example. Instead of one phone call to Step Change who sorted it all out for me, I now have to contact each creditor individually myself.

However I like being in full control, and whilst I found Step Change a huge help when I first went on my DMP (and very comforting to have there in the background for support) I feel able to sort my debts myself now.

so_very_confused

Hi Sazzie/Growurown
I think SC has changed the way they do things. I have had to reduce payments for the last two months due to horrible circumstances. On each occasion SC has told me to contact my creditors, which is an absolute pain due to being on hold forever on expensive number and also feeling absolute heel explaining everything. I have recently applied for a new job, interview next week. I am already stressing that if I get it my new payday will be 6 weeks hence and I will have to reduce again although It will mean a little extra money for debts.
Oh well............:(

Sazzie23

so_very_confused wrote: »

Hi Sazzie/Growurown
I think SC has changed the way they do things. I have had to reduce payments for the last two months due to horrible circumstances. On each occasion SC has told me to contact my creditors, which is an absolute pain due to being on hold forever on expensive number and also feeling absolute heel explaining everything. I have recently applied for a new job, interview next week. I am already stressing that if I get it my new payday will be 6 weeks hence and I will have to reduce again although It will mean a little extra money for debts.
Oh well............:(

Good luck with the interview, after what you've been through with DMP any interview should be a walk in the park.


Interesting point about SC not contacting creditors for you. I've not been in that position fortunately yet although its been an expensive car week so may have to in Jan.


Don't stress about what will happen if you get the job, think about what the extra money will mean for you once you get settled in. - Oh and we'd like to know how you get on ;-)