Self Managing - Direct Debit or Standing Order?

RWMJPMC86RWMJPMC86 Forumite
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I had settled into a DMP with StepChange and understand all the processes, I did jump in and do this too quickly and so am now looking to stop the DMP. Go self managed and only start paying off the ones which have defaulted and gone to collections while I await the remaining defaults.

So far, only one Debt has defaulted - I am about to contact Link Financial direct to tell them I'll take over the payments personally, paying at the same rate StepChange have been paying, my question is - do I get them to set up the DD? or Do I create a non changeable standing order? My worry is the standing order can continue after the debt is cleared, but a DD can be varied by the creditor - am I totally overthinking this?
New Starting point 1st Sept 2022 - 
Total DMP Value = £36,538.83 made up of -
Virgin Money £1,562.05
Zopa £2,706.17
MBNA £3,420.15
Virgin 2 £4,694.28
Link Financial £5,038.57
Lendable £8,748.04
Hastings Loan £10,371.57

Sainsburys bank £6,842.95
Next £250.80
Fluid Card £553.60
Very £720

Total Debt £44,906.18
Emergency Fund: £0/£1000

Debt free in 10 years?! Lets do this!

Replies

  • peliroccopelirocco Forumite
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    set up a standing order and then cancel it when ever you like
    Vuja De - the feeling you'll be here later
  • Rob5342Rob5342 Forumite
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    I pay them by standing order so I'm in complete control and I'd recommend you'd do the same. If you want to change it later you just have to send them an email with the new figure and change your standing order, rather than having to ask them to change it and not knowing exactly when it might change.
  • RWMJPMC86RWMJPMC86 Forumite
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    Thanks all, it all feels so alien stopping payments and waiting but I completely get the reasoning behind it now - I guess it just always felt like I was extending end point date rather than getting things cleared ASAP
    New Starting point 1st Sept 2022 - 
    Total DMP Value = £36,538.83 made up of -
    Virgin Money £1,562.05
    Zopa £2,706.17
    MBNA £3,420.15
    Virgin 2 £4,694.28
    Link Financial £5,038.57
    Lendable £8,748.04
    Hastings Loan £10,371.57

    Sainsburys bank £6,842.95
    Next £250.80
    Fluid Card £553.60
    Very £720

    Total Debt £44,906.18
    Emergency Fund: £0/£1000

    Debt free in 10 years?! Lets do this!
  • SusieTSusieT Forumite
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    RWMJPMC86 said:
    Thanks all, it all feels so alien stopping payments and waiting but I completely get the reasoning behind it now - I guess it just always felt like I was extending end point date rather than getting things cleared ASAP
    By waiting for them to default you will be stopping the interest on them at that point, so although it may extend the end point by however many months, it will also reduce it slightly as you will not be paying interest so everything will come off the capital, so overall only a few months difference - plus you will have saved what you would have been paying while waiting for the defaults and started the journey to not needing cards/loans for replacing, and you will have been saving for things like annual bills, holidays and presents which will have you in a much better place when you do start the payments. 
    Credit card debt - NIL
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  • RASRAS Forumite
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    Getting defaults will settle your credit record. You'll know that it will improve a few years after the default date, and they are removed altogether after 6 years.

    Arrangement to Pay markers stay on your credit record for 6 years AFTER you pay off the debt, so a lot more damaging long-term.
    The person who has not made a mistake, has made nothing
  • RWMJPMC86RWMJPMC86 Forumite
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    Thanks @SusieT and @RAS, it's one of those things that I KNOW it's the best thing, it just feels backwards and unnatural doesn't it.

    Email sent to Link advising they will receive payment from me directly from now on, on the 1st of Every month for X amount as per Stepchange original agreement. Lets see if they are happy with it.
    New Starting point 1st Sept 2022 - 
    Total DMP Value = £36,538.83 made up of -
    Virgin Money £1,562.05
    Zopa £2,706.17
    MBNA £3,420.15
    Virgin 2 £4,694.28
    Link Financial £5,038.57
    Lendable £8,748.04
    Hastings Loan £10,371.57

    Sainsburys bank £6,842.95
    Next £250.80
    Fluid Card £553.60
    Very £720

    Total Debt £44,906.18
    Emergency Fund: £0/£1000

    Debt free in 10 years?! Lets do this!
  • sourcratessourcrates Forumite
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    I would not use any method wear by the creditor could potentially take money from your account.

    Online banking is best, get their bank details, make the payment manually every month, by manually, I refer to clicking your mouse a couple of times.

    That way you adhere to the mandate of retaining complete control over matters.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • edited 7 October 2022 at 12:10PM
    Rob5342Rob5342 Forumite
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    edited 7 October 2022 at 12:10PM
    RWMJPMC86 said:
    Thanks @SusieT and @RAS, it's one of those things that I KNOW it's the best thing, it just feels backwards and unnatural doesn't it.

    Email sent to Link advising they will receive payment from me directly from now on, on the 1st of Every month for X amount as per Stepchange original agreement. Lets see if they are happy with it.

    Yes it does seem very backwards and completely counter-intuitive. If you approach them offering to make payments and asking for help then they treat you worse than if you completely ignore them for a few months. It doesn't make sense at all does it?

    I started paying everything from the start as that what Stepchage advised, but 18 months or so later I still have two arrangement to pay markers. I've stopped paying those now to get defaults but I wish I'd known to default first before I started.
  • RWMJPMC86RWMJPMC86 Forumite
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    That's exactly where I'm at now @Rob5342, It's actually really frustrating - we are due to remortgage in 2.5 years, and I really hope to have everything defaulted by the new year as 2 clear years on my file after default would probably really help the remortgage (though will likely just stay with current lender it would be helpful to have the options there)
    New Starting point 1st Sept 2022 - 
    Total DMP Value = £36,538.83 made up of -
    Virgin Money £1,562.05
    Zopa £2,706.17
    MBNA £3,420.15
    Virgin 2 £4,694.28
    Link Financial £5,038.57
    Lendable £8,748.04
    Hastings Loan £10,371.57

    Sainsburys bank £6,842.95
    Next £250.80
    Fluid Card £553.60
    Very £720

    Total Debt £44,906.18
    Emergency Fund: £0/£1000

    Debt free in 10 years?! Lets do this!
  • edited 10 October 2022 at 12:31PM
    Rob5342Rob5342 Forumite
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    edited 10 October 2022 at 12:31PM
    I've complained about my MBNA default as it took them a year to default me even though what Stepchange send them made it clear it would take 4 years to repay. They rejected my complaint and I've now escalated it to the financial ombudsman service so I'll see if they uphold it.

    It's a bit annoying as I used to take cash out from some cards to pay others so I didn't get defaults, but now I want them they are being infuriatingly slow.
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