It is possible to change your debt management company at any time. You can switch to a different provider or start managing the Plan yourself.

In this article:

• Is it possible to change your Debt Management Company?
• How to switch to a new provider
• Can you start managing your own Plan?
• Could you stop and use a different solution?

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Is it possible to change your Debt Management Company?

A DMP is not a legally binding agreement. As such if you are using a company to manage the plan on your behalf you will have no legally binding contract with them. This means that you can stop using their services and do something different at any time by simply cancelling your payments.

However before you do this you should make sure you have your next steps planned out. If you stop making your agreed payments to your creditors even for a month they are likely to start their collection activities against you again and may start adding more interest where this was previously on hold.

How do you switch to a new Debt Management Company?

There are a large number of debt management companies to choose from. It is therefore often very difficult to know whether or not a different company will give any better service than the one you are currently working with.

The best thing to do is do some research and try to get a recommendation that you trust. You could also follow one of their experts on a debt management forum. Take some time and become familiar with what they are saying. If you get the feeling that they are doing a good job, give them a call and have a chat.

BMD Tip: If you are already in a DMP and do not want to add any additional creditors there should be no reason to pay a fee to the new company to take on your case.

Can you start Managing your own Debt Management Plan?

The alternative to using a new company is to simply manage your DMP yourself. This should be relatively easy as your original management company should have given you a report detailing how much they are paying each creditor each month.

It is quite acceptable for you to contact your creditors yourself and let them know that you will be paying them directly from now on.

If you have been paying a monthly management fee to your management company then managing the Plan yourself from now on may well be to your advantage as all of your monthly payment will go to your creditors thus enabling your debt to be paid off more quickly.

Can you Stop your Plan and Use a Different Debt Solution?

While you are on a DMP it is always sensible to review your circumstances periodically and consider whether a different solution might work better for you.

If you are finding that your creditors are continuing to add interest and charges to your balances or the length of time it will take you to repay your debts is unreasonably long then you might find that an Individual Voluntary Arrangement (IVA), Bankruptcy or a Debt Relief Order would be a better solution for you.

If you are unsure about the advice you have been given about these solutions in the past, then it is always sensible to speak to a different advisor and compare the advise you are given.

All too often, people chose not to use a solution that would ultimately be far better for them because they have misunderstood the implications or have simply been given incorrect information.