Starting a DMP. Would you write to lenders?

louisechackett

I am in the process of starting a DMP with step change. I have the paperwork signed and need to send it back and the list of accounts and things. I have arranged for bank accounts to be switched over, although our joint account is taking a little longer.

I wrote a thread on here yesterday and someone suggested cancelling non essential direct debits and letting the companies know that I am setting up a debt management plan with stepchange. I admit cancelling the direct debits has got me panicked as I am a worrier anyway. I plan to ring step change on Monday for advice re cancelling them and contacting the companies but thought I could get on with writing letters over the weekend if anyone knew this would be the advice they would give.

Thanks in advance
Louise

glentoran99

Step change will contact them, and if any of them get in touch refer them to step change, cancel direct debits now otherwise they may come out

louisechackett

glentoran99 wrote: »

Step change will contact them, and if any of them get in touch refer them to step change, cancel direct debits now otherwise they may come out

Thanks. I thought maybe it would be good practice whilst the DMP is being set up to let them know myself I am in the process of starting it hence the direct debit not going through?

glentoran99

its not really necessary as step change will do that, when you cancel the direct debits the companies will get notified they have been cancelled and might contact you then, at that point direct them towards stepchange, be wary though of doing anything yet until your accounts are moved away from anyone you owe money too and where payments in are going or they could freeze the accounts and take any money you have in them or going in them

sourcrates

louisechackett, Hi,


Remember what I said about been "proactive" in your other post ?


Well this is part of what I meant, you have taken the decision to start a DMP, you now need to prepare the ground for that.


You have started the bank changing process, which is good, next, as January advised on your other thread, the non essential direct debts need to be cancelled straight away, so that no further payments go out.


It usually takes a week or so before a creditor will write and say your DD failed, you don't need to contact them yourself, but if you feel better doing so, than a short letter to each one briefly explaining your financial situation, and mentioning Stepchange, will be sufficient.


After that, any further correspondence from your creditors should be forwarded to Stepchange, or if they phone you, again, refer them to Stepchange.
They will soon be acting on your behalf, so all correspondence will go through them.


Once things are up and running you will find no real difference to the way things are at present, except you will be paying out less money, any further questions feel free to ask.

Puzzcat

Hi,

I would only suggest writing to the creditors if you are delaying the start of the dmp to save for an emergency fund. If you need a template letter let me know..

Puzz. x

BeingDebtFreeStartsHere

Have you looked at the DMP and Mutual Support Thread? If not. I would advise checking this out and reading through as many of the threads as possible. Loads of advice on setting up a DMP and support throughout your journey from a friendly, helpful and non-judgemental bunch who are all, or have been, in the same position as you

We look forward to your company!

Good luck with the DMP!

BDFSH x