Your views and questions.

Moderators: TalbotWoods, JaneClack

By royston
#297803 I've been in a DMP for over 4 years now. I'm with PayPlan but was considering going it alone and making the payments to creditors myself.

I was wondering how you go about changing over and setting up the monthly payments to creditors. The time frame is important as I would want to make a smooth transition with the change of way creditors received their payments.

I presume that I would have to set up individual Standing Orders to each creditor.

Any advice from Forum Members who have done this would be most welcome, as, should I decide to do this, I would like to go the right way about it.

Thank you in advance. :)
By chandjay
#298093 Hi Royston,
I did my own DMP for 5 years.
I liked it because it meant that I was in control of the payments(when they got paid, how much they got paid etc).
It also meant that I could "skip" payments whenever I chose although I always let them know the reason why they weren't getting paid that month(usually Bullsh*t). I once wrote to my creditors in December telling them they weren't getting paid that month because I was going to celebrate Christmas like everyone else. They weren't pleased, but there was little they could do, as I was in control(I couldn't see Payplan doing that).
I paid them over the internet using my bank's "Bill Payment" system, again so I was in control.
I think you would be wise to do your own DMP. You'll be surprised how easy it is to do, once you get the hang of it.
GOOD LUCK.
By rikw
#298103 Hi Royston, I too have no regrets about doing Self Administered DMPs for me and my o/h. I was originally paying CCCS200 amonth now have it down to 70, my o/h originally 150 now 55. has Chandjay correctly points out you are under more control. creditors that were adding interest have stopped or been reduced to £1 a month, as long as you are organised theres no reason why you shouldnt go ahead and do your own
By royston
#298123 Thank you chandjay and rikw for your helpful advice.

I have been paying a good pro rata payment to all of my creditors since starting my DMP, mainly due to the fact that I am in my mid 60's now and want to clear my debts over the next 2 years or so. This will be down to my being able to work, and also to get work as I'm self employed of course.

Overall my creditors are treating me very fairly, all but one, who seems to now be determined to take nearly all of my payment each month as interest and just deducting a few pounds off of the balance owed. It really is a load of BS (just a hint! :wink: ) but I'm afraid they have picked the wrong person to annoy, as I have now taken my complaint to the FOS.

I am just thinking along the lines of being more in control of ensuring my payments reach each creditor on the correct date every month and just being more hands on in regard to repaying my debts.
By Butts
#298153
rikw wrote:Hi Royston, I too have no regrets about doing Self Administered DMPs for me and my o/h. I was originally paying CCCS200 amonth now have it down to 70, my o/h originally 150 now 55. has Chandjay correctly points out you are under more control. creditors that were adding interest have stopped or been reduced to £1 a month, as long as you are organised theres no reason why you shouldnt go ahead and do your own


One factor to consider is how many creditors you actually have which dictates the practicality of communicating with each one individually.

Having over 20 myself, the thought of having to send so many letters (never mind the 50p 2nd class cost) is enough to keep me with Sarahs "mob" :mrgreen:

As "master holidaymaker" says you do have total control running your own dmp, but if you are versed in the arts of "creative accounting" it is virtually the same with Payplan. All but one of mine get £1pm and thats their lot !!
By rikw
#298173 Of course it is not suitable for everyone to do theyre own DMP, but with a little time and effort it can be better in the long run.
Between the 2 of us there are also around 20 creditors, but all but 3 are on standing order. The one's taht do have to be posted get the cost of postage deducted from their monthly payments. I 'm also not bad with the computer so have all the letters on file. Over the last 4 years, Ive built up a portfolio of different events so able to draw on a suitable letter if need be.
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By JaneClack
#298253 Now Butts - I know you just wanted a response!!!

Sustain and maintain the plan - that's their motto and if you cannot afford more than £1 per month that is all they will get.

I do have to say that going forward we are only accepting clients who have £100 surplus when they start their plan - if things change later that is a different matter as creditors are already getting a reduced payment. If one can afford more than £1 per month each then it is always better to try and get things paid off and most of our clients I am sure do want to clear their debts but are not able to do it alone.
By Butts
#298333
Sarah wrote:Now Butts - I know you just wanted a response!!!

Sustain and maintain the plan - that's their motto and if you cannot afford more than £1 per month that is all they will get.

I do have to say that going forward we are only accepting clients who have £100 surplus when they start their plan - if things change later that is a different matter as creditors are already getting a reduced payment. If one can afford more than £1 per month each then it is always better to try and get things paid off and most of our clients I am sure do want to clear their debts but are not able to do it alone.


True to a degree, but if you are talking hundreds of thousands the difference between paying £1 per month to creditors or £5 is marginal in respect of the debt but not the debtor - ie 27 x 4 is over £100 per month and can make a great deal of difference to an individuals lifestyle. :mrgreen:
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By JaneClack
#298383 It can - which is why IVAs can be very useful and also why bankruptcy is there for people with no assets!