In order to repay my huge amount of debt, I opted to set up my own debt management plan. It was easy for me to do as I had done it once before the first time I got into debt. It was also a suitable solution because I don’t have any priority debts. It is also not suitable because of the amount of time I will be in debt and something like an IVA would have been better.
I thought I would write about a typical month managing my own debt and what it involves. Running your own debt management plan isn’t too hard, but can be a challenge when you have as many debts as I do. The biggest benefits to me of doing it myself are: –
- I have complete control over the repayments.
- If something goes wrong, it is up to me sort out and I don’t have to deal with a third party.
- I can adjust payments to different debts to pay them off quicker.
- I don’t have to pay anyone to do it for me.
- I can write a blog about it.
A typical Month
The most common things to happen are that one of my debts is moved to a new debt collection agency. When this happens I have to do the following: –
- Remove the old standing order from my Bank.
- Send an offer of repayment letter and income and expenditure form.
- Request their payment details.
- Set up a new Standing order with my bank.
Once the above is completed things normally tick along. Whenever a debt has moved I haven’t experienced any issues setting up a new repayment plan so whilst it is a minor inconvenience having to do the above, it’s not too bad overall.
Another thing that happens is that a debt collection agency will sometimes write to me to ask for an increase in repayment. Most of the time I am unable to increase my payment so instead I send a letter to say so. Each and every time the repayment arrangement is reset for another six months or so and then the whole process starts again.
I also update a spreadsheet which contains a list of all my debts along with the balance owed. Each month I add the payment I have made to this sheet so I can keep track of what’s going on. I also check every three months that the information I have matches what the debt collection agency says I owe. If there are any problems I work out where things have gone wrong and get them put right.
I don’t really hear from my creditors so long as I keep on paying them. Apart from what I talked about above they don’t really bother with me. However if a payment is late or missed then the phone does start to ring again and you do have to explain yourself. This doesn’t really bother me though, after all I do write a blog about my debt so it makes for interesting stories anyway.
Alternatives that cost nothing?
You can get a free debt management plan from someone like StepChange or Payplan if setting up your own plan isn’t suitable. They can also talk you through other options that may be better for your situation. Head on over to the Debt Help page to find out more.
Being in debt is tough but you can get out of it, no matter how bad things may seem. Best of luck with sorting out your debts!