Self managed Debt Management Plan

Darthmark

The story so far.
So I found out that a Self managed Debt Management Plan was an option in dealing with my outstanding debts so I advised the debt management company I used that I would be cancelling their services in writing. I did so and their response was quite rude to be fair and I never really expected the level of insincerity in the phone conversation when I said i was adamant that i would be managing my own plan. I have of course put in a complaint and have gone to the "debt-free wannabe" section of this forum and followed the advice of the cabmoney org uk site mentioned therein. It was a bit confusing about whether the service there was just for East Derbyshire as I live in Dorset I but followed the links etc anyway and started the process of managing my own DMP. So far, I have realised that in nearly 3 years of having the company I chose deal with my plan, they charged £45 every month amounting to nearly £2500.00 which could have gone towards my debt. It is no wonder they were upset when I told them I was going to be managing it myself. I have sent off letters of intent to my creditors after finding out the office addresses myself as the DMP company wouldn't tell me, they said it was info only for the DMP company and the creditors benefit so the DMP companies do put obstacles in the way of you leaving. STICK WITH IT AS I HAVE DONE. I have cancelled my direct debit to the DMP company and await letters from my 6 creditors. Its a bit daunting but according to the DMP company I was still going to be paying my debt well into my late 80's. I am 53. I have roughly worked out that I will be paying twice as much to each creditor and will finish paying my debts in half the time.

Please note there are free DMP companies. I never realised this when I took out mine so think carefully and get all the info you can get when you wish to proceed with your own debt.

I await letters from my creditors 

sourcrates

I will check that link and update it, as its not been done in a long while.

Yes, debt management companies profit from your misfortune, they do absolutely nothing to justify their extortionate monthly fees, self management is just so simple, once you stop paying your debts, your creditors will write to you.

Better if they are all collection companies, as you can pay directly via their own websites, much less hassle than paying a bank.

gwynlas

Not all are the same Stepchange is free to use as are others

Darthmark

gwynlas said:

Not all are the same Stepchange is free to use as are others

I will update my post. Yes you are correct that not all are the fee grabbers....

Rob5342

Darthmark said:

gwynlas said:

Not all are the same Stepchange is free to use as are others

I will update my post. Yes you are correct that not all are the fee grabbers....

Stepchange are much better as they don't charge a fee, however they do still work in the creditors best interests rather than yours. It's much better doing it yourself, then you can run it with your own interests as s priority and have a credit report that is cleaner that sooner as well as it costing a lot less overall.