Self Managed DMP

Desperadoo
Desperadoo Posts: 98
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edited 23 May 2022 at 4:14PM in Debt-free wannabe
Hope ok to start new thread

Have spent hours searching and reading about DMP but have a few questions

I am  going to change from Payplan to self run for a few reasons but want to ask a few questions to others who have done this .

My next payment is 28th, so once that is done I intent to start the change process.  I will be using the CAB templates. 

Once I cancel Payplan and the Direct Debit is it likely that this will be sorted for next payment  or do I continue to pay Payplan until I hear from my creditors. 

I have 7 debts....5 defaulted ......one is just £48.....2 debts  are a few hundred pounds.....can I just pay these off and not include it in DMP ?  ( have a little savings ) 

I currently pay £200 pm to Payplan but when i do SOA due to increase bills and a slight reduction in my income since last review like everyone I can only afford £150....will this be a problem as cant afford same payments ?

Will I have to send bank statments to creditors ?  Joint accounts and hubby not happy with his information being shared 

Finally if you have changed from a DMP with a company/charity did you have an issue with new self managed  one being accepted ?

thanks for reading 


June grocery challenge £164 /£460...
week 1  £87/£115 
Week 2 £77/£115



My Debt Free Diary >>>>>https://forums.moneysavingexpert.com/discussion/6360269/desperate-to-sort-my-life-for-last-time
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Comments

  • Rob5342
    Rob5342 Posts: 1,363
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    I changed to self managed from Stepchange recently. I decided when my last Stepchange payment would be, cancelled the direct debit as soon as it had been taken, and then set up standing orders to pay the debts at the same time as sending the letters to them all.

    My payments had reduced due to increased energy bills but it wasn't a problem at all. Half of them changed the payment on my statement without even contacting me, and the others wanted me to phone them to discuss it before it was applied. All they wanted to know was the reason for the payments reducing which they accepted without question, and then made sure I understood all the implications of defaults being applied etc.
  • Desperadoo
    Desperadoo Posts: 98
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    Rob5342 said:
    I changed to self managed from Stepchange recently. I decided when my last Stepchange payment would be, cancelled the direct debit as soon as it had been taken, and then set up standing orders to pay the debts at the same time as sending the letters to them all.

    My payments had reduced due to increased energy bills but it wasn't a problem at all. Half of them changed the payment on my statement without even contacting me, and the others wanted me to phone them to discuss it before it was applied. All they wanted to know was the reason for the payments reducing which they accepted without question, and then made sure I understood all the implications of defaults being applied etc.
    thanks for your reply

    How did you set up the standing orders at same time as sending letters?  Did you not need the companies to send you their bank details ?

    thanks 


    June grocery challenge £164 /£460...
    week 1  £87/£115 
    Week 2 £77/£115



    My Debt Free Diary >>>>>https://forums.moneysavingexpert.com/discussion/6360269/desperate-to-sort-my-life-for-last-time
  • Rob5342
    Rob5342 Posts: 1,363
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    Some were credit cards which had details on the statements, others were debt collectors which had the details on their website.

    If you don't get the details in time for the next payment then just put the money aside somewhere. You can either make a later payment to catch up or have a bit of spare cash of they agree you can start the next month.
  • Desperadoo
    Desperadoo Posts: 98
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    Rob5342 said:
    Some were credit cards which had details on the statements, others were debt collectors which had the details on their website.

    If you don't get the details in time for the next payment then just put the money aside somewhere. You can either make a later payment to catch up or have a bit of spare cash of they agree you can start the next month.
    Thank you 
    June grocery challenge £164 /£460...
    week 1  £87/£115 
    Week 2 £77/£115



    My Debt Free Diary >>>>>https://forums.moneysavingexpert.com/discussion/6360269/desperate-to-sort-my-life-for-last-time
  • RAS
    RAS Posts: 32,475
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    Depending how long the debts have been defaulted, those now with debt collectors may offer you a reduced settlement if you hang on in there. They often paid pennies in the pound for the debt and some will make a profit on a 50% settlement.

    I'd be inclined to clear the £48 and pay the others the reduced amount based your new SOA. Then sit back for a couple of months.
    The person who has not made a mistake, has made nothing
  • Desperadoo
    Desperadoo Posts: 98
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    RAS said:
    Depending how long the debts have been defaulted, those now with debt collectors may offer you a reduced settlement if you hang on in there. They often paid pennies in the pound for the debt and some will make a profit on a 50% settlement.

    I'd be inclined to clear the £48 and pay the others the reduced amount based your new SOA. Then sit back for a couple of months.
    Thanks....all except one with DCA I think

    Lowell
    Moorcroft 
    PRA 
    INTRUM X 2  

    JaJa Finance ? Never heard of them but think they may have taken over a credit card I have


    June grocery challenge £164 /£460...
    week 1  £87/£115 
    Week 2 £77/£115



    My Debt Free Diary >>>>>https://forums.moneysavingexpert.com/discussion/6360269/desperate-to-sort-my-life-for-last-time
  • sourcrates
    sourcrates Posts: 28,558
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    edited 24 May 2022 at 5:20PM
    You can pretty much do as you please, remember, you are under no obligation to make regular monthly payments, that only applies to your CCA regulated debts whilst still under contract, once defaulted you can no longer have late or missed payments recorded against you, so just take your time with things.

    You are in control of this, spend some time informing whoever owns your debts now, that you will be taking over responsibility for payments, tell them when you will start paying, you can pick a date 6 months in advance if you want too, your not under any agreement or contract any longer, regular payments do not have to be monthly, they can be whatever you want them to be.

    Small debts (less than say £50) you can basically ignore for the time being, or pay them off if you want to, its your choice, small debts won`t` ever go to court, so why bother with them ??.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • peteuk
    peteuk Posts: 1,231
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    Years ago I came off a step change DMP to a self managed one.  I took the payment I made and the amounts paid to each debt and worked out the % each got.  I then reworked out SOA and applied the % to the new payment.  

    Then when I got a little bit more, I again split it across all debts at the same percentage.  It’s sounds like a bit of work but it really isn’t.   

    Good Luck!
    Proud to have dealt with our debts
    Starting debt 2005 £65.7K.
    Current debt ZERO.
    DEBT FREE
  • Desperadoo
    Desperadoo Posts: 98
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    edited 25 May 2022 at 1:52PM
    Thanks for replies

    Just rang and told DM company I am struggling and ended up in tears.  

    I did say I was going to leave and do my own and they asked would I let them do a review first so have arranged that although will be next week .

    She did insist on suspending this months DD which was due on 28th and I paid £1 per creditor as token payment.  I did offer £100 but she steared me towards the £1







    June grocery challenge £164 /£460...
    week 1  £87/£115 
    Week 2 £77/£115



    My Debt Free Diary >>>>>https://forums.moneysavingexpert.com/discussion/6360269/desperate-to-sort-my-life-for-last-time
  • KatieAnne
    KatieAnne Posts: 24
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    Sending big hugs Desperadoo x
    I have just started self managed, set up new Standing orders and cancelled Step Change.
    I used  https://nedcab.cabmoney.org.uk/dmp.asp  to generate all the letters and also provide them with financial statement ( budget)
    All gone smoothly and accepted ,  but today PRA are asking me to complete a new budget form on their website, I have emailed them a copy of the  financial statement budget I recently sent them again and feel this is sufficent.




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