Will a DMP close my accounts?

ev8

Hi all.

I finally want to be debt free, and I'm trying my best to see what's best for me. My debts are not too big, around £4,000, maybe a little more, but I'm sick a tired of only paying the minimum payment and the balance doesn't change.

So, I believe a DMP will be best for me in the long run, however I was wondering if my accounts have to be closed for this?

I want all of my debt gone, but I would like to keep the credit limit on one or two cards incase anything big came up (like for my dog, he's insured, but sometimes you have to pay upfront then claim back). And I like knowing that if an emergency came up, I had that in my back pocket.

Thanks for any help.

Grumpelstiltskin

What you need to do is get an emergency fund together before you start a DMP rather than risk using credit in the future.

First step is to post your SOA on here.

ev8

SOA? Sorry, what's that?

I really wouldn't want to risk using credit, but it's a good insurance to have to use that and then claim back on the insurance.

Will a DMP close the account?

Ilona

I'm wondering why you are only paying the minimum payment. It would be better to stop buying things you want and only buying what you need, rent/mortgage/ council tax, utilities, food, and transport to work. Then you might be able to up your payments to the debts.

As said above, post up here a Statement of Affairs, and people will be able to make suggestions on how you can cut back on your spending.

My cats are not insured, I put money aside for anything that needs to be paid out. Start a little savings pot for your pet.

ilona

Suseka97

ev8 wrote: »

......
So, I believe a DMP will be best for me in the long run, however I was wondering if my accounts have to be closed for this?
I want all of my debt gone, but I would like to keep the credit limit on one or two cards incase anything big came up (like for my dog, he's insured, but sometimes you have to pay upfront then claim back). And I like knowing that if an emergency came up, I had that in my back pocket.
Thanks for any help.

A DMP may be the best option for you - but you should consider other ways as well and maybe speak to a debt charity to discuss options. If you do go down the DMP route your access to credit will cease and yes, your creditors will effectively close your account/s.

Carrot007

Any account you include in the DMP will be closed.

Only way to keep one is not tell them and keep paying required amounts and usual interest. This will generally require you self manage (which is the best option anyway) as it will be against the terms of companies. Though they would never know if you did not tell them about the account.

It's a lot easier if you have one that is already paid off.

ev8

Ilona wrote: »

I'm wondering why you are only paying the minimum payment. It would be better to stop buying things you want and only buying what you need, rent/mortgage/ council tax, utilities, food, and transport to work. Then you might be able to up your payments to the debts.

As said above, post up here a Statement of Affairs, and people will be able to make suggestions on how you can cut back on your spending.

My cats are not insured, I put money aside for anything that needs to be paid out. Start a little savings pot for your pet.

ilona

I don't spend on them any more, for a few years really. I also don't easte money and do only buy things I need really.

I do have a savings pot, however, I would still wish to have a safety net of a credit card, my dog being one reason, but there being others too.

I've been making the minimum payment as I have set up direct debits and I have disabilities that affect my memory, and I just never have remembered to pay more.

ev8

Suseka97 wrote: »

A DMP may be the best option for you - but you should consider other ways as well and maybe speak to a debt charity to discuss options. If you do go down the DMP route your access to credit will cease and yes, your creditors will effectively close your account/s.

Thank you. That's good to know as I don't really want to lose the credit.

Perhaps this isn't the best option for me after all. I saw it as a quicker way to settle the debt, but I maybe have other options that I should look at.

I really would like to clear all, or the majority of my debt so it's no longer hanging over me.

DCFC79

ev8 wrote: »

SOA? Sorry, what's that?

I really wouldn't want to risk using credit, but it's a good insurance to have to use that and then claim back on the insurance.

Will a DMP close the account?

Possibly, its a good idea to open up an account with a bank that isn't connected in anyway to a bank your currently have.

DCFC79

SOA link here.

ev8

DCFC79 wrote: »

Possibly, its a good idea to open up an account with a bank that isn't connected in anyway to a bank your currently have.

Thank you, can I ask why I will need a new bank account?