Cancelling DMP to manage myself

shaun196809

Hi,

I've had a DMP since 2009 and had 7 creditors. Now only two remaining and thinking of managing them myself so I can negotiate a F&F.

Also, feels quite good to be out of a DMP! Finally!!

However, is there a catch? Could I get charged with interest on remaining debt etc?

Thanks.

sourcrates

Hi,

You simply carry on doing what you've been doing, nothing should change, if it did, written complaint would be in order.

You should not be treated any differently for self management, lots on here do the same.

National_Debtline

Hi Shaun,


There is always a risk of interest and charges with informal negotiations, even in a DMP (as they are not legally binding). If you are able to do full and final offers and you are with a free, reputable DMP provider then they may be able to help you put this in motion.


However, if you want to do the settlement offers yourself, there is no harm in doing that alongside the DMP. You must get everything agreed in writing before you send any money. And sometimes it can help to demonstrate to the creditors that the DMP will take x number of years to clear the debt in full, versus the idea of a lump sum payment now, if they agree to right off the balance.


It is always at the creditors discretion whether to accept a settlement offer, but if this has already been going on for 8 years then they may be more inclined to consider a settlement to close your account down.


Laura
@natdebtline