DMP mutual support thread part 13 !!

Makingabobor2

https://forums.moneysavingexpert.com/discussion/comment/81995889#Comment_81995889

Yes I was surprised that they don't seem to want to entertain any offers we have put to them. We may be paying it off, but its still going to take a while at this rate. When we first went self managed we went down to absolute minimum payments so we could get some savings behind us, but now we are in a position to pay a bit more. But still a long way to go. Much better to be self managed, you have so much more control

Oh, and yes, they have all been sold on, infact a couple have been sold on twice

sourcrates

https://forums.moneysavingexpert.com/discussion/comment/81994990#Comment_81994990

Self management is very, very easy, we advise first waiting for debts to default, now that`s not essential, but it makes things easier in the long run.

Its basically a case of stopping all non essential payments, save a good emergency fund, then once you feel ready to start paying, you simply respond to the letters that you are sent.

You don`t need to write to them, but an email confirming you are in financial difficulty, and that you will be making reduced payments of whatever on such and such a date each month, is basically what you tell them.

You may have to ask for payment information, but if the debts are will collection agencies, then that info is included in all their letters.

That is it really, you just pay on a monthly basis, what you can afford according to your budget, and bobs your uncle, its as simple as that.

towerofsong

https://forums.moneysavingexpert.com/discussion/comment/81996083#Comment_81996083

Thanks again Sourcrates, the autonomy surrounding a self- managed DMP is really tempting, as is the ability to save something into an emergency fund as when my first payment to StepChange comes out on 1st June there won’t be a lot left over to save.

burgervanman

https://forums.moneysavingexpert.com/discussion/comment/81996196#Comment_81996196

If you can use an excel sheet to track the status of everything (or even a book) then it's very doable. I have 10 creditors and so far it's been ok. I have a chase bank account purely for SO's for DMP. I just automate it all.

ManyWays

https://forums.moneysavingexpert.com/discussion/comment/81995943#Comment_81995943

How low have your offers been and how much have you increased what you are paying a month?
It may be worth asking Stepchange to cut what you pay a month (petrol prices, April bill rises etc) and divert more money into your settlement fund.
And it is not worth making offers on very low balances, too much hassle for the possible gain.

Makingabobor2

https://forums.moneysavingexpert.com/discussion/comment/82000762#Comment_82000762

We are not with SC any more, been self managed for a few years now. We have 2 balances that are around £2.5K, but the rest are bigger ones. In the past…when we weren't able to even think of a settlement, they made us offers of around 30% and we actually did settle a couple a few years ago, but now they don't want to know. I must admit I have been making offers on the smaller ones first, but maybe I should offer them something silly on the big ones. Like you say its too much hassle on the small ones for them maybe.

Be interested to know if anyone is actually getting settlement offers these days.

sourcrates

@Makingabobor2

Quote:

"Be interested to know if anyone is actually getting settlement offers these days."

I think the general cost of living crisis has meant many more people defaulting on debt repayments, as they are having to choose between buying food and putting fuel in the car, or paying non essential debts.

The domino effect of that has meant a lot of debt purchasing companies profits have not been as high as predicted, which in turn means they are not in much of a position to offer any great reductions on their current portfolios.

They are still making money, just not as much.

I would expect this trend to continue as long as the cost of food/fuel/utilities etc remains high.

Makingabobor2

https://forums.moneysavingexpert.com/discussion/comment/82001025#Comment_82001025

Aah, had never thought of it like that. But then it is costing them in admin to have to service the debt every month, you would think they would be keen to get rid of it.

AgentBigBoss

why would they want to get rid of it? They want whole amount back ! I also tried to ask for settlement offer but for example recently Link Financial only offered 10% discount 🤣

Makingabobor2

https://forums.moneysavingexpert.com/discussion/comment/82001033#Comment_82001033

Yes, that is about all I can get now. Yet, years ago, they were offering us 70% off, but at the time we couldn't afford anything like that. I was told though that most companies just want rid of the debts as soon as possible, but it doesn't seem that way now. Trouble is at this rate we will still be paying when we are on our death beds…LOL Husband keeps saying, we'll inherit one day soon and can pay it off then, but can't guarantee that these days, as parents and in-laws could end up in care home and need the money for that.