Step by Step to a DMP

NowInspired · 18 January 2018 at 2:51PM

Hi
Please can someone lay out the stages necessary before starting a DMP, whether self managed or with SC.
i.e. Do we start paying less straightaway, do we ring/write to the companies right from the start?

There seems to be a process that is recommended in not to start the DMP straightaway (so as to build an emergency fund) so I could just use some guidance as to the correct way to deal with matters before reaching the DMP stage please.

Thanks

enthusiasticsaver · 18 January 2018 at 6:12PM

It takes time to set a DMP up anyway so it is not instant. The usual advice is to let the debts default as soon as you decide a DMP is the way to go and save in an emergency fund as you will have no access to credit. Write to creditors or ask stepchange to do it, asking them to freeze interest and give you some breathing space until a monthly repayment is agreed. It is then divided between your creditors. It usually takes around 2 months until the first payment is taken. You will need a clean bank account with no overdraft and not linked to a bank with which you have debts.

Step by Step to a DMP

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