Money grabbing DMPs!

[knoxvillain]

A few months ago, my credit card maxed out and

I suddenly realised I was in a position where my outgoings were massively more than my incomes.

 

 

The previous couple of months I had been making credit card payments

using other credit cards! I am sure many are familiar with this story.

 

The point I want to make,

is that at this point I decided rather than going down the DCA and then Baliff route,

it was time to step up and get out of debt.

 

 

I signed up to a company in Manchester at the recommendation of my brother who was with them at the time.

 

 

It turned out they charges a fee for their services but I was so desperate to stop all the hassle, I decided to go with it anyways.

 

A few months down the line, all the agreements are in place and all my creditors have stopped charging interest.

I got a statement from the DMP and decided recently that I grudge the £35 a month

they are taking out of my £200 a month I am paying them to send to my creditors.

 

 

yesterday and today I phoned round all my creditors and explained that I wanted to set up a standing order directly to them

and ask them all for account nunbers, sort codes and references to set it up.

 

 

They all gave me the information I needed without a problem.

I didn't even mention the DMP at all to them or the fact I was stopping using them

cause I guess at the end of the day as long as the money keeps reaching them,

they don't care whether it comes from the DMP or from me directly.

 

 

What I have also done is recalculate repayment figures to them all,

redistributing the £35 the DMP was taking to my creditors

so they are all getting more money each month

and I'll get out of debt faster!

 

So if you are in a DMP and they are charging you for the privilege,

I would strongly recommend taking it on yourself.

 

 

Once payments are set up, agreements in place and money flowing, the banks are that bad to deal with directly.

 

There are also DMPs who do it for nothing (PayPlan I think for example) however I personally like to be in control of my money, not someone else.

 

Anyways, I hope this helps at least someone!

[Turnaround]

I agree with your stance and concur PayPlan and CCC offer this service for free.

 

One point I would like to make is that, change your payments from DIRECT DEBIT to STANDING ORDER.

 

Under a Direct Debit they can withdraw any ammount, whilst with a Standing Order you alone control the ammount paid.

[knoxvillain]

my apologies, it is standing orders I have set up, I don't know why I wrote direct debits.

[Turnaround]

Glad to here that, some don't realise the important difference.

[121o121]

Hi Knoxvillian

 

I done exactly the same a few years back. They charged me monthly for them to dispurse the monies to all my creditors. I called them all and they were keen for me to do ditch the DMC and handle it all myself, as in the long run it would save me money.

 

I know it's not always the case, but in my experience, i put forward realistic lowered re-payment plans, and stuck to them. As long as your trying your best and not ignoring them, they'll leave you alone.

[knoxvillain]

Did all your creditors default you?