Moving to self managed DMP

Boppy30

Hi

Just after some advice. I have read through the forums and found some detail, but hoping for a bit of hand holding!
I have a DMP which is managed through stepchange. I really want to go self-managed so that I can have better control over my payments and save for some full and finals.

I need to build an emergency fund so was thinking that I would cancel my direct debit to stepchange and then write to my creditors to say I will be going self-managed. I plan to offer token payments of £1 for 3 months so that I can build a pot.

My question is, what do I put in the letter? Is it something along the lines of that I plan to go self-managed, that payments will cease for 3 months to enable me to build an emergency fund and then the date they will start and what the amount will be? I plan to keep it the same as what I currently pay with Stepchange.

Is it likely they will accept this? What happens if they don’t? Will they issue a CCJ? All my debts are still with the original creditors.

Any help appreciated.

Willing2Learn

Hi Boppy30,

Just put in the letter that

• you will be self-managing your DMP with immediate effect
• you will be making £1 token payments for three months as your car or boiler requires emergency maintenance
• the full payment plan will begin on xx September 2019
• from xx September 2019 the amount paid every month will be £xx

Yes they will accept this as they will have no choice. You are keeping them fully appraised of the situation. They may write to you whinging about it, but your offer will be accepted at the end of the day. Since you are keeping your creditors informed of your repayment plan, there is little risk of any of them seeking a CCJ.

Have your accounts all been defaulted yet?

Boppy30

Willing2Learn wrote: »

Hi Boppy30,

Just put in the letter that

• you will be self-managing your DMP with immediate effect
• you will be making £1 token payments for three months as your car or boiler requires emergency maintenance
• the full payment plan will begin on xx September 2019
• from xx September 2019 the amount paid every month will be £xx

Yes they will accept this as they will have no choice. You are keeping them fully appraised of the situation. They may write to you whinging about it, but your offer will be accepted at the end of the day. Since you are keeping your creditors informed of your repayment plan, there is little risk of any of them seeking a CCJ.

Have your accounts all been defaulted yet?

That’s great, thank you for the help!

2 have defaulted – Barclays and MBNA but Virgin and Sainsburys haven’t as yet and I am having trouble with HSBC as this is an overdraft not a credit card.

I have wrote to the remaining 3 several times asking them to default but they say they it is not at that stage yet (I don’t know if this is because payments have been made, albeit lower than the minimum amounts?).

Fiona_CW

I have just changed from Step Change to self managing. I used NEDCAB (https://nedcab.cabmoney.org.uk/dmp.asp) It generates the letters for you

Boppy30

Fiona_CW wrote: »

I have just changed from Step Change to self managing. I used NEDCAB (https://nedcab.cabmoney.org.uk/dmp.asp) It generates the letters for you

Thank you for the link. Going to get my letters sent off today as have now cancelled my plan with stepchange.

Suseka97

Boppy30 wrote: »

That’s great, thank you for the help!

2 have defaulted – Barclays and MBNA but Virgin and Sainsburys haven’t as yet and I am having trouble with HSBC as this is an overdraft not a credit card.

I have wrote to the remaining 3 several times asking them to default but they say they it is not at that stage yet (I don’t know if this is because payments have been made, albeit lower than the minimum amounts?).

Sounds like you have a plan.. so good luck with self-managing. It really does put you in control

With regards to the those that haven't defaulted - you may find dropping them to tokens for longer than 3 months will nudge them in the right direction. Just a thought.

Boppy30

Suseka97 wrote: »

Sounds like you have a plan.. so good luck with self-managing. It really does put you in control

With regards to the those that haven't defaulted - you may find dropping them to tokens for longer than 3 months will nudge them in the right direction. Just a thought.

I have all my letters ready to send about going self managed, however I have had a letter from MBNA stating that they have ended my agreement as payments are not up to date and that it will be passed to collections.

I'm really worrying about this and unsure what to do now. Do i still write to them stating i'm going SM or do I wait for the debt collectors to contact me?

This account has already defaulted.

Willing2Learn

Still send the letter to MBNA, as they currently still own and manage the account. Once you get a letter from the DCA who subsequently owns/manages the account, then you can start sending all correspondence to the assigned DCA.

Suseka97

Do as W2L advises and if letters cross in the mail, meaning if the DCA contacts you before MBNA does - then just send the DCA the same sort of letter with regards to what you intend to do re your DMP. Often DCAs are much easier to deal with than the original creditor.

Boppy30

Thank you both for your help. Will get the letters sent out today and see what happens!