StepChange or DIY 15k DMP?

fwil

Hi,
My Stepchange DMP was ended due to missing payments (erratic pay from new job). They say I should start a new plan with them but would I be better off on a DIY plan?

As I understand it, Stepchange are obliged to make fair payments to all creditors. But their advisors have told me that debts being Defaulted then passed to DCA's is no bad thing because the DCA's can't charge interest.

Only my biggest debt (5k) hasn't been Defaulted yet. If i was to go it alone I would focus on the debts that have been passed to DCA's and hold off the others until they get sold off.

As i'm struggling to pay off 15k and not a homeowner i'm thinking this wouldn't be too risky a strategy?

Any advice appreciated, thanks

National_Debtline

Hi fwil and welcome to the forum.


There's no fundamental difference between DIY negotiations and using a third party like Stepchange - both can be equally effective. I would just point out, though, that if you chose to focus on the DCA debts for now at the expense of the £5K debt, that one could creep up further with interest and charges until it defaults, so you could end up owing more overall. Entirely your choice as to how you approach them, but feel free to continue seeking support here and from other free, informed sources.


Dennis
@natdebtline

fwil

Thanks for reply, as things stand there is no interest being charged on the 5k one. As its been marked as '6 months in arrears' every month since August 2014, hopefully it won't be long before it defaults.

Are there any other risks i should be aware of?

sourcrates

fwil wrote: »

Thanks for reply, as things stand there is no interest being charged on the 5k one. As its been marked as '6 months in arrears' every month since August 2014, hopefully it won't be long before it defaults.

Are there any other risks i should be aware of?

As long as you tackle it before the DCA goes down the legal route you should be ok.
Remember you can negotiate better discounts with DCA's some will even let you pay the discounted amount, on a monthly basis, can work in your favour.