Best way to default before DMP?

amat6219

Have moved over to diaries but starting new thread for traffic purposes. All but confirmed DMP with payplan (DH).

5 CCs to 5 lenders

Payplan have advised to move bank account before starting DMP 

Is it best to take all the money out of current account (move to new one) and let the CC payments default that way when there is nothing there, or best to just cancel the DD payments straight away?

Should current account be closed? Once money moved out? Or once DMP has started? 

Also, will there be any issues / effect on joint account if DMP payment goes out of there? 

 

[Deleted User]

I am no expert by any means but I would have thought that it would be prudent to avoid further bank charges for non-payment of direct debits. Surely better to cancel them?

fatbelly

Cancel the direct debits to your creditors immediately. You won't be needing them.

You need an account to receive your income and handle essential direct debits, that is not connected to any of your debts. This is to avoid the right of set-off. The old one can be emptied and closed if not overdrawn. If it is overdrawn it becomes another debt in the dmp

amat6219

Perfect, thanks. Life isn’t, but the information is! 

If everything is moved (essential DD and salary, then DMP) to the joint current account will this affect our credit file jointly too?

Mine is ok presently and would like to keep it so if possible!

fatbelly

If you have any joint financial product (loan, mortgage, current account) then your credit files will be linked.

amat6219

Ah ok, so it won’t really matter anyway as we are already connected. 

Will make it easier whilst I get a grip of his finances for him for the time being. 

EssexHebridean

amat6219 said:

Ah ok, so it won’t really matter anyway as we are already connected. 

Will make it easier whilst I get a grip of his finances for him for the time being. 

Be careful with the bit in bold...you need to work together to deal with the nuts and bolts of this - as a rule the situation of one party "mothering" the other in a relationship and "taking care of their finances for them" doesn't end well. 

Sir down together, talk things through, make decisions jointly, and then split the workload on carrying out what needs doing to see those decisions through.

amat6219

Thanks @EssexHebridean, much appreciated and you are totally right!

We had a sit down yesterday and have decided on me taking a bit of control of the finances as a whole household for 6 months at least and then 'review' - sounds very formal but we decided that is the best option for now.

Having taken a bit more control of it for 6-8 weeks, I have saved £450 emergency fund, cleared one small loan balance and got myself out of my unagreed overdraft into my free agreed overdraft - all of which he was very surprised (and relieved re savings) to hear!  

Feeling a lot more hopeful now!