Unsure to cancel direct debit

bobby81_2

Hi guys

I currently am in talks with a debt management company and am still deciding wether to take the option of a DMP or an IVA. Whilst the option I choose to take is considered and the time it will take to set up, bills are still coming out of my account by direct debit.


I am due to pay my Egg card this Wednesday by direct debit and am unsure wether to cancel the direct debit as I have not got the money in my account.

The debt company said "I am under no obligation to meet this payment due to my circumstances" however I'm not sure if they are allowed to say this and also wether to take their advice on missing payments on purpose.

I have an overdraft facility from the account Egg will be taking their money from so will be going over my overdraft limit and will firstly be charged for going over my limit (£25) and secondly I am paying £30 interest to Egg which hopefully by next month this interest will have been frozen so am not sure wether to miss the payment or not and the implications of doing this i.e. late payment charges.

Advice on this matter would be greatly appreciated.

Many thanks in advance

mbs1

when i set up my DMP, i cancelled all SO's and DD's straight away, one of my creditors were due to be paid the next day...

I was advised that until my DMP was set up i should inform all creditors of my situation and offer token payments od £1 until my DMP was set up.

Have the company not advised you which route to take, i.e DMP or IVA.

I hope they aren't charging you for their services, as you can do it for free, Try CCCS, consumer credit councilling service or Paypal or the National Debt line as these are free charities that will assist you and not charge a penny.

Hope this helps.

bobby81_2

thanks for reply!

I will inform Egg now and cancel my DD.

They are charging me a fee only if i take IVA option (no upfront fees and maintenance fee will come from the monthly amount I give my creditors). DMP option is free. All advice I have got from them is free too.