Doing my own DMP - questions

leninspot

I am thinking of managing my own debts - I'm currently with Payplan in a DMP - should I tell PP before I go ahead? What if my creditors don't accept my payments (although I can manage to increase the monthly payments marginally)? There are 1 or 2 smaller debts & I've had offers to pay them off at a good rate. Am I right in thinking PP wouldn't let me do this with only a couple of my creditors (there are 4 in total)? I'd feel better about my overall situation if 2 of my debts were just gone. Any advice gratefully received.

Suseka97

I'd just time it so when the next PP payment is taken, you then write to your creditors and tell them that from the following month you will be making the payments direct. You can simply say that everything remains the same and ask them to provide you with their payment details. They really shouldn't bat an eyelid, but some might ask for a review of your I&E and if so, just send them the same as PP has. Then before your next payment is due to be taken close your PP account, but make sure you have copied all the information about your creditor or DCA (balances, account numbers etc).

As for settling - much easier when your self-managed. The debt charities tend not to be in favour of settlements that exclude some creditors. Of course one way around that is to agree a settlement figure and simply zero your balance with PP and they'll redistribute your payment across the remaining ones. They might ask why an account has been zero'd -but once it done, its done - if you get my drift.

So, you have two avenues to explore - hope that helps.

Willing2Learn

Suseka97 wrote: »

As for settling - much easier when your self-managed. The debt charities tend not to be in favour of settlements that exclude some creditors.

When I self-managed, I simply made settlement offers pretty randomly to my creditors, as and when funds became available. This upset other creditors, as they would say I was showing preferential to some of my accounts. I just ignored their protestations and continued to do it my way, until all my accounts were settled.

@OP - So be prepared for some of your creditors to moan that others are having preferential treatment if you chose to pay off the smaller debts early. Just don't be bullied when they phone you or write to you complaining...

leninspot

if I'm doing my own DMP why/how would creditors know if I had offered a final settlement to other creditors?

sammyjammy

leninspot wrote: »

if I'm doing my own DMP why/how would creditors know if I had offered a final settlement to other creditors?

from your credit report.

leninspot

I am signed up to Clear Score & as far as I can tell there isn't anything there which shows this kind of info - could it be that most of my debts are well over 6/7years old?

Willing2Learn

There are three major CRAs. You need to check your files (for accuracy)with all of them.

Yes, if your accounts were defaulted over six years ago, they should already have been removed from your files.