Debt Management Plan Advice, and paying off one debt included in plan

adotd

Hi All,
 
I've been in a debt management plan for a bit over 3 years (maybe it's been 4). This debt management plan is with GW Financial Solutions. I'm perfectly happy with them, and haven’t had a problem with them. However, I didn't realise that other companies offer DMPs without charging an admin fee. I believe that Step Change don't charge a fee, and they also have an app so that I can conveniently see my debts and how they are reducing each month, can anyone confirm this? Or are there any other companies that could be recommended?
 
Also, will I experience any issues if I move over to a new DMP company? One of the debts included in my DMP (£3500 owed to Ratesetter) is the only account that isn't showing as default, and I'd like to keep in good standing with them and not default. It has shown as being in an arrangement since entering my DMP. Would changing companies negatively effect this status? 
 
Finally, I owe £3700 to Lendable. For the past 3 years it shows as being in default and shows that I make late payments each month. I now have the money to pay off this loan in its entirety, but I'd like to make an offer to them directly to pay a recued fee to partially settle the debt (£3000-£3400 perhaps?). Would that be an acceptable offer? Would I call, email or write to them regarding this?
 
I'm probably complicating things, but would the process be that; I pay off the Lendable debt first so that I don't owe them anything, then contact a new DMP company and enter an agreement with them, and then hope that I stay in good standing with Ratesetter (still showing as in arrangements), and hope that in the transition period I don't miss any payments with the other lenders? With me paying off one debt and having no admin fee I can of course pay each lender more which will be a big help. Apologies for being long winded. 

Grumpelstiltskin

OK The first thing to do is cancel your debt plan with the money grabbing vultures you are with now.

Next read through this thread and complete a SOA format for MSE and post on this thread.
In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

When we see your exact financial situation we can advise you of the best way forward.

Rob5342

Ditch GW Legal straightaway, Stepchange and Payplan are both free, think of how much money you have put in GWs pocket when that could have been paid off your debts instead. Companies like this have no morals at.all, preying on people that are struggling with money and then keeping them in debt for longer. You can manage a. DMP yourself yoo, its very easy, all you do is set up standing orders to.each of the companies for however mich you want to pay. Its much more flexible managing it youraelf. 

DMPa are flexible infotmal arrangements, cancel GW immediately and start a new one with Stepchange or Payplan or just manage it yourself.  If any payments get missed then they will just jabe to libe with it, bit if you manage it yourself you can make sure that doesn't happen. With lendable you can juat stop paying and then write with a settlement offer, start with a low offer and if they dont accept it then try again in six months time. 

For.any.debts that have been sold then male a CCA request, if they can't produce that then the debt can't be enforced and you can simply stop paying it. 

Grumpelstiltskin

Our advice to cancel immediately will give you a few weeks to decide your best way forward as the vultures will in all probability not even look at it until the new year.

When you do your SOA try and put the interest rates and whether defaulted, the more information you can give us the better we can advise you.

fatbelly

adotd said:

Hi All,

I've been in a debt management plan for 4 years. This debt management plan is with GW Financial Solutions. I'm perfectly happy with them, and haven’t had a problem with them. 

However, I didn't realise until recently that other companies offer DMPs without charging an admin fee. I believe that Step Change don't charge a fee, and they also have an app so that I can conveniently see my debts and how they are reducing each month, can anyone confirm this? 

Also, will I experience any issues if I move over to a new DMP company? 

One of the debts included in my DMP (£3500 owed to Ratesetter) is the only account that isn't showing as default, and I'd like to keep in good standing with them and not default. It has shown as being in an arrangement since entering my DMP. Would changing companies negatively effect this status? 

Finally, I owe £3700 to Lendable. For the past 4 years it shows as being in default and shows that I make late payments each month. I now have the money to pay off this loan in its entirety, but I'd like to make an offer to them directly to pay a recued fee to partially settle the debt (£3000-£3400 perhaps?). Would that be an acceptable offer? Would I call, email or write to them regarding this?

I'm probably complicating things, but would the process be that; I pay off the Lendable debt first so that I don't owe them anything, then contact a new DMP company and enter an agreement with them, and then hope that I stay in good standing with Ratesetter (still showing as in arrangements), and hope that in the transition period I don't miss any payments with the other lenders? 

With me paying off one debt and having no admin fee I can of course pay each lender more which will be a big help. Apologies for being long winded. 

Payplan and Stepchange both do fee-free dmps but as you also have a lump sum available you may be better going the self-managed route.

I think you should stop paying the ratesetter debt until they give you a proper default. AP markers are a pain

I do not understand why you would prioritise Lendable. Make your 3k work for you by offering each creditor 20% of the debt ( that's of not off) and see who bites. You can always go up.

There are resources on NEDCAB and National Debtline

sourcrates

DMP`s are free from the debt charities, and when you self manage.

Never use a commercial debt management company for this, as you have found out they will charge you for the privilege, and a hefty charge it is as well!!

We would never recommend anyone use this kind of service, as such companies only profit from your mis-fortune.

ManyWays

With a lump sum, settlement offers are often a good option, there is no reason to start by offering the full amount. It looks from their website that GW charge you for a full and final settlement, so you definitely want to end this DMP before making offers. If Lendable and RateSetter haven't sold on the debt, they may not accept an offer, in which case you could try an irresponsible lending complaint to them. Ratesetter have not done you any favours by not defaulting you, keeping this on a payment arrangement  results in your credit record being harmed for much longer. 

Nomunnofun1

GW take 50% of the first four payments (minimum £175)  and 17% of each subsequent payment (minimum £39.95). 

Wow!😮 

Rob5342

Nomunnofun1 said:

GW take 50% of the first four payments (minimum £175)  and 17% of each subsequent payment (minimum £39.95). 

Wow!😮 

It's criminal isn't it, that could turn a 5 year DMP into a 6 year one. They try and present a DMP as some complicated thing, but managing one yourself is really just a case of making monthly payments like you were doing before. 

MEM62

Nomunnofun1 said:

GW take 50% of the first four payments (minimum £175)  and 17% of each subsequent payment (minimum £39.95). 

Wow!😮 

If in the plan between three and four years the OP could have at least £2,000 less debt.  Makes you wonder why they would say............ 

adotd said:

I'm perfectly happy with them

ManyWays

MEM62 said:

If in the plan between three and four years the OP could have at least £2,000 less debt.  Makes you wonder why they would say............ 

adotd said:

I'm perfectly happy with them

These firms prey on the desperate; at the time, being able to pay less may have sounded amazing, and they ignored things in small print, suggesting they could look for free firms. They may even have been told on the phone that the free firms arent as good.

I see no point in criticising that decision now, better to concentrate on how easy it is to switch to StepChange or go DIY. @adold may even be worried that if they stop the plan creditors will start adding interest (which isn't going to happen) and hassling them (which wont happen if the creditors are still paid.)