DMP - cancel DD’s?

Nubeynoobs

Hi all, 
newbie here! Recently taken the decision after advice from SC to do a DMP, 30k worth of debts. SC action plan is in the post but just wanted to check: 

1) should I cancel all direct debits now? 

2) one of the debts is a Loan with my bank which is a standing order - how do I cancel this? Just ring them? 

3) should I change banks, as they’ll be one of the many creditors. 

Many thanks 

sammyjammy

Yes change banks and yes cancel SO and DDs, a standing order would have been set up by you so you should be able to cancel.

Nubeynoobs

Thanks, only thing is I’m currently in an overdraft with them - should I wait until Payday then do the move? 

Galloglass

If you owe the bank move over to an unrelated bank as banks have the ability to take (almost) what they want. Your employer will advise if the payment will switch in time or ask them if they can delay it until the account is set up.
  

Stop paying for the moment unless it is rent, council tax or utilities 

Suseka97

Okay... so you've not yet set up the DMP... Yes?

If so, write to all your creditors - excluding your bank loan.  Tell them you are struggling financially and that you are in discussion with SC to consider your options.  Then cancel those DDs straight away.   In the meantime get yourself a new bank account with another provider that has no links with any of your current debt accounts.  Get your salary paid into your new bank account and transfer all your non-debt bills across - don't do this by switching, do it manually.  

Your creditors will put your account/s on hold for a 30 day period, that's the norm - which gives you a little breathing space.  Once you've set up a new bank account and your household DD's are transferred over and your salary is getting paid to the new account, then you can send your bank the same (I'm in trouble, seeking help from SC letter) and above all hold off starting the DMP until at least 6 months in.  

What you are now looking to achieve is defaults on those credit accounts, that means all interest and charges will stop.  Head over to the DMP support thread and have a good read.  Above all, do not rush into a starting a DMP too early.  If you read up on this thread you'll know why. BTW, a DMP is a great solution and SC are brilliant - but they will want you to start your DMP quickly and that might mean you don't get those defaults in a timely fashion and you'll keep paying interest and charges.

You also need time to build up an emergency fund the those future 'unknown' expenses.

Good luck.