Final settlement offer, need advice, pls..

NeutrinoLight

Can I contact creditors with offers before cancelling DMP or this is not okay?
I guess they won't be happy but I don't know what they could do, if anything..
Thank you!

RAS

Start by cancelling the DMP. Put the payments into a savings fund for yourself if possible; something that allows you to save towards a new microwave or fridge if it packs up.

Then come back and we'll help you send "prove it" letters. Which is what you do if your creditors write to you. Or get an appointment with CAB and ask them to help you do it.

Most will struggle to comply. 

NeverendingDMP

Once you have a list of who you think you owe and how much/any contact details etc have another breather/cuppa and have a read about CCA requests.  Everyone else will explain it properly but basically it's a letter to ask the companies for a copy of the agreements from when you first took out the credit. Chances are it's so long ago they can't find it, then you can choose not to repay at all or wangle a better deal in a full and final settlement. Like I say others will explain the technical side of it better. It's the strangest thing in the world to say to someone in debt (I'm still wearing the t-shirt) but there is no rush yet to repay it. 
And yes in answer to your question I would think it's better to cancel the company you are paying before anything else if only so they can't try to bill you for anything else. 

sourcrates

NeutrinoLight said:

Can I contact creditors with offers before cancelling DMP or this is not okay?
I guess they won't be happy but I don't know what they could do, if anything..
Thank you!

Yes you can, but, there is a right way to go about it, and a wrong way.

You are currently paying this DMP company an unnecessary monthly fee, this needs to stop, as explained previously, as you are simply wasting your precious cash for no good reason.
Also after 20 years, it may not be clear who actually owns your debts, these DMP companies are not exactly reliable nor do they practice much in the way of due diligence, some of your accounts may be dormant, sold on, even already closed, you need to end this arrangement now in order to properly ascertain your position.

You also need to clear from your mind how creditors will react, and what possible action they could take for non payment, nothing will change in the short term, once you cancel your arrangement with the DMP company, your creditors will write to you and re-commence collection activity, that will then tell you who owns what.

Making settlement offers, again, should be done correctly, it has to follow a process, its like building a house, first you need a firm foundation, well there is a similar process to be followed here.

Section 77/79 of the consumer credit act, covers your statutory right to request a copy of your credit agreement, this applies to all types of consumer credit debt that you sign an agreement for, and that are covered by the said act.
In a nutshell, failure on the creditors part to comply with such a request, renders your debt unenforceable in court, which in laymen's terms simply means you don`t have to pay it if you don`t want to, or, you can use that information in order to obtain much more preferential settlement deals.

Forgive me for the long post, but this subject is quite detailed, and must be done correctly, I want you to be clear on what you need to do here.
CCA requests are the first step to take in the run up to making settlement offers, information on how to do that, can be found here -

Debts - why, how & when to ask for the CCA agreement · Debt Camel

That is step one, how you go forward from this point depends on the responses you get to your letters.

Can you confirm you understand so far, or do you need more help ?

MalMonroe

Hi, OP, just wanted to offer my support and to say thank goodness you came here, at last! No need to be embarrassed or ashamed at all. Many of us have been in a similar place and with personal experience comes knowledge.

So much great support here. I won't add to anything of course but would like to say that you're definitely in the right place. 

All the very best to you. 

sourcrates

@NeutrinoLight

How are things, any update for us ?

NeutrinoLight

I have letters to post with settlement offers which I'll be posting soon and hope for the best. I never default a payment so I guess none of the debts could ever be statute barred. 

I'd like to speak to someone to clarify my doubts  but I guess only paid agencies would be available to speak.
I have not yet informed my DMP that I'll end my plan so not sure it's okay to make a settlement offer myself without first cancelling them..
I'm at the verge of a nervous breakdown, anyway, I hope I survive this..
Thank you

RAS

Please stop. Sending offer letters is way down the line.

You need to follow sourcrates advice and have to do this in the right order.

Firstly, please ring Stepchange 0800 138 1111 or National Debtline 0808 808 4000 if you want to talk to someone. They are both free debt advisory agencies. They are open until 8pm. And tomorrow morning.

Secondly, cancel your payment to your DMP provider and write to them telling them you are doing so. If you don't have internet or telephone banking, see if they are open tomorrow or wait until Monday.

Then you will be sending CCA Requests to each of your creditors. Someone here can post you the link or you can ask CAB to help you.

Officially, they have 6 weeks to reply but most likely they will take longer. During that time they cannot take any action to recover the debt. 

Some of them will never come back, some will let you know they can't find the documents and will close the account. Come back here if any of them send you anything.   

badmemory

Please follow sourcrates advice, you won't regret it.  If you are concerned why not try reading a few other threads by debt free wannabees.  Don't let that DMP provider make any more money out of you.

NeverendingDMP

Hiya. The advice is sound and will probably get you a cheaper settlement down the line. Please please try to cancel the dmp provider. Between you and the support of your friend you are managing it without them so honestly there is no need to pay them any more. 
Also it's definitely worth following the advice about CCA requests and things and also if you never defaulted you might also need to find out about the difference between that and arrangements to pay. On the flip side though and I'm being  controversial in some ways I totally get why you want to use the money from your friend and just get debt free as quick as possible, it's affecting your health and this will make it better quicker. It could end up costing you a lot more though which everyone is worried about. Would your friend read through this thread with you and help you look at your options. Also do you need to pay your friend back. Have you talked about that with them. 
Good luck with it all.