Moving from StepChange to Self Managed DMP...

LucyGalbo

Hello all 
I've been on a DMP with StepChange for three years and my debt currently stands at £2,555 and I owe to six creditors - four are with debt collection agencies and two are still with the original creditor. 
SC have been brilliant and a life saver at the start of the plan - the thing is I have been considering going self managed now as the debts are all reduced down quite a bit and I want to throw any extra money at them when I can, I also think it should be quite easy when it comes to the ones with DCAs, as they seem to have ways on the websites to set up your own payment.
A few questions if anyone can help

1) Do I just phone Stepchange and simply tell them I'm closing the plan?

2) For the two that are still currently with creditors, one is Bamboo and one is Capital One - the Bamboo website allows me to pay on there so that should be okay, but Capital One, I'm unsure of how to go about paying myself - I'm blocked out of my app and online account due to being on a DMP I guess, so how do I go about paying this?

3) Do you think they will all allow me a months breathing space to get my own plan and new budget in order?

Thank you very much 

Grumpelstiltskin

I would E Mail Stepchange and just tell the you are closing the DMP.

Have all the debts defaulted? I wonder about the ones with the original creditors.

You can take as long as you lie before you set up new payment plans, you can pay each creditor as much as you like you don't have to split equally and you don't have to give creditors details of your budget you just pay them what you want.

I wonder if there are any debts that have low amounts left to clear them and it may pay you to clear those first, just don't rush into setting up payment plans it will take the creditors some time to realize you have left Stepchange and that gap will give you time to sort out exactly what you are going to do.

stu12345_2

yes, you end plan with them, tell them and you should cancel the direct debit with your bank too.
. stepchange will keep your file open for 3 months max if you need to restart.

and from experience capital one closed online account and prevented normal access, I had to phone them, they offered 50% discount on the spot. when I asked about full and final settlement or just offer a monthly payment.via standing order, I asked for their details and offered a monthly amount , no questions asked from them!

you don't need breathing space

oh and get exact balances owed incase a recent last d debit with step change is about to go through, cos stepchange pay the creditors 5 working days after the direct debit payment 

LucyGalbo

stu12345_2 said:

yes, you end plan with them, tell them and you should cancel the direct debit with your bank too.
. stepchange will keep your file open for 3 months max if you need to restart.

and from experience capital one closed online account and prevented normal access, I had to phone them, they offered 50% discount on the spot. when I asked about full and final settlement or just offer a monthly payment.via standing order, I asked for their details and offered a monthly amount , no questions asked from them!

you don't need breathing space

Thanks for this! I would like a month breathing space this month due to a large unexpected bill - but would resume payments in May, do you think I would be okay skipping payments in April all together?

LucyGalbo

Grumpelstiltskin said:

I would E Mail Stepchange and just tell the you are closing the DMP.

Have all the debts defaulted? I wonder about the ones with the original creditors.

You can take as long as you lie before you set up new payment plans, you can pay each creditor as much as you like you don't have to split equally and you don't have to give creditors details of your budget you just pay them what you want.

I wonder if there are any debts that have low amounts left to clear them and it may pay you to clear those first, just don't rush into setting up payment plans it will take the creditors some time to realize you have left Stepchange and that gap will give you time to sort out exactly what you are going to do.

Thanks for this So if I missed a payment in April completely, it shouldn't be too much of an issue?
The Bamboo and Capital One accounts are actually the two lowest balances at £163 and £326, I could focus on these two over the next few months but I have anxiety about the other companies bombarding me for payment. Do you think it would be a few months before I heard from the others?

stu12345_2

you could ask stepchange for a temp stop on your acct, explain you have a large unexpected bill. they temp stop it , so no d debit is collect this month and they tell your creditors you had an emergency.( such as large bill on your car)

but you could ask a £100 gesture  payment split between each creditor to be collected( not sure what your normal  payment is, mines was over £500)and hence stepchange will continue a smaller direct debit this month.( don't tell them you are planning on leaving though)
then you could call step change or email them in say a month's time after the smaller direct debit, saying I'm closing my plan fully, then you close the direct debit fully at your bank with them

as from experience I had to do 3 emergency stops on my account in the past

Grumpelstiltskin

When you do self managed you are in charge, don't ask for a breathing space just don't pay until you are happy with what you are doing.
You should have been allowing enough in your Stepchange budget to cover saving an emergency fund so you have back up when an unexpected bill turned up.

Remeber you are in charge, you pay what you can don't be pushed into agreeing something you can't afford.

stu12345_2

the problem with step change is they allow £25 a month for emergencies, that's not enough, to get around that you have to arrange your budget where you maximise your expenses, but don't always hit them.
eg state £250 for food , but aim for £200 state £150 for gas and elec , but aim for £120, you get the idea.

so you can actually build a larger emergency fund faster

LucyGalbo

You've both been very helpful I'm just a little nervous about the start of the self managed, I know it should all be okay and I feel better now that my balances aren't exactly huge anymore. Part of me feels like phoning Stepchange and explaining I need a reduced
/no payment month, but I did this once like a year and a half ago and the advisor was quite judgey and rude and it really threw me off as I wasn't expecting it, which has now give me the fear to go on the phone to them again.

stu12345_2

phone them, tell you have a large un prepared for  bill, don't get into long chat, offer lower payment this month.
they will say let's do a new budget as you must be doing it wrong somewhere.
say no thanks, it is a one off, 
anyway I had 3 emergencies, and all they did was drop it to £100 for a month.

they aren't being judgemental, they are doing their job and concerned your budget is out of whack, but in reality imo it's the only £25 a month emergency that they suggested is the problem.

cos you could get hit with a £500 car repair within a few months of joining stepchange, which happened to me

then my elderly mother got very very ill I had to fly 600 miles to Scotland and back, hotel fees too.
at £800 a journey.

they would not allow me to set an emergency budget of £200 a month, cos she is very ill and is still weak and housebound at 87 years old

so in the end I did a new budget on purpose and " upped" my overheads eg food , petrol, gas, electric, in order to save a larger emergency fund to visit my sick mum.
you get the idea

like I said the mim imo is £100 a month total step change will accept to pay creditors

Grumpelstiltskin

Don't be nervous, you are only a number to your creditors, they are not interested in you personally and as I said it will take a while before they realize you have stopped paying.

I will disagree with Stu about ringing Stepchange in case you waiver and they talk you into carrying on. Take the bull by the horns and E Mail them and tell them you are stopping your DMP no need to give any explanations.