Self managed debt management plan

scout33

Hi all, just after some advice on a self managed DMP. What are the first steps and can any share any positive stories about them? Thanks! 

Rob5342

The important thing is to stop paying and wait for the accounts to default before starting the dmp. That is far better for your credit report in the long run although completely counter intuitive. After defaulting just start making payments to whoever is handling the debt at thst point. A self managed DMP is little different to not being on a dmp really, you just make the payments yoy can afford each month. Make sure you build up an emergency fund while you wait for defaults and keep paying into thst when you start paying the debts back. Another good approach is to pay less then you can afford to the debts and put some money into a settlement offer fund. When that gets high enough you can use thst to try clearing one of the debts for a reduced amount. 

Grumpelstiltskin

First step is read this thread.

In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forum

Complete a honest SOA format for MSE and copy and paste on to here. Then we can see the full details of your situation to enable us to give you advice.

Then enter Self Managed  into search on this forum and you will find people who are going down that route.

RAS

Have you got a new basic bank account not related to anyone to whom you owe debt? There's no credit check and no overdraft, but otherwise normal. Do not use switching, shift income and essential DDs manually. 

Once you've done that consider telling the creditors to remove your phone number to reduce calls and texts.