Can You Switch Your Plan?
You can switch to a new debt management plan provider if you’d like to.
This debt solution isn’t legally binding so you’re free to make a change.
Common reasons for switching debt management plans include:
• Poor service
• Continued creditor hassle
• Continued interest and charges
• Delayed payments to creditors
• New debts held outside of the DMP
• Excessive fees
The debt management industry is no different to any other sector. There are firms that provide great customer service and there are firms that don’t.
Debt is stressful enough without having to put up with poor service.
Changing to a new DMP provider shouldn’t be difficult. These plans are not legally binding so there’s nothing to stop you replacing your current service-provider.
This simple process can be used:
1. Identify a new debt management firm that you’d like to use. Contact them to discuss the possibility of a switch and to find out more about their service and fees.
2. Get a statement from your existing DMP provider. This should include a list of your creditors, the account numbers, and the balances owed.
3. Return the sign-up paperwork to your new provider so they’re ready to take over managing your debts.
4. Cancel your existing DMP. There shouldn’t be a long notice period or any financial penalty (confirm this to be certain).
This process will help you to avoid potential pitfalls like:
• Delays in setting-up the new plan
• Delays getting creditor information
• Disruption to your regular payments
• Payment arrangements being broken
• Creditors not kept informed
• Interest and charges being re-added
It doesn’t have to cost anything to switch your debt management plan.
Avoid new providers that charge an extra set-up fee. There are a number of DMP firms (including Bright Oak) that don’t add a separate set-up fee for new plans.
Check the fee that the new provider charges to ensure you won’t be paying more than before. You also have the option to use a free DMP service.
You don’t have to use a DMP provider at all.
If you’re ready to manage your personal finances without external help you could switch to operating your own debt management plan.
Remember that a debt management plan isn’t your only option to deal with debts.
It’s worth getting debt advice so you can consider other solutions as well. Sometimes a change of debt solution can get you out of debt faster and at a lower overall cost.
If you live in England, Wales, or Northern Ireland your options are:
If you live in Scotland your options are:
If you’ve moved abroad you may also still have other options:
Bright Oak is a full authorised and regulated provider of debt management plans. We’ve been providing a customer-focussed service since 2007.
If you’re considering switching to a new DMP provider please get in touch. We’ve helped hundreds of customers transition away from their previous debt solution provider.
We’re also authorised and regulated debt counsellors. We can assess potential alternative debt solutions for you and advise you regarding their suitability.
For expert support and advice please get in touch.
Author: Andrew Graveson
Qualified Debt Adviser & Bright Oak’s Founder
Page Last Updated: 30/06/2020