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DMP Help

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  • RAS
    RAS Posts: 35,683 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Once the salary is moved, you need to make sure that as each essential DD leaves this month, you transfer over to the new account immediately. 

    You haven't mentioned an overdraft? If possible, close the existing bank account, taking anything left as cash.

    You'll also need a new instant budgeting account, where you put money each month towards annual/infrequent spends like Christmas, insurance, holidays, clothing, medical and dental. Or a "pot" if you have an account like Monzo. Put your cash here.

    And an emergency fund which could be an ISA, into which goes the money you would be paying into your DMP. Once the accounts default and you set up payments this needs to increase slowly, so have a line in your budget for it.

    The defaults could take 3-18 months but you need a good emergency fund.

    And to stress test your budget over the next few months.


    If you've have not made a mistake, you've made nothing
  • fatbelly
    fatbelly Posts: 23,001 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    It's easiest to do a manual switch and just move the d/ds you want to move.

    You won't get any of the incentive deals but that doesn't matter

  • kimwp
    kimwp Posts: 2,984 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    Cancel any direct debits that you are going to stop paying IE non priority bills
    Get your salary moved to your new account - understand what date this will happen
    Contact each priority provider and find out, if you change your bank account details when the money will come from your new account, then give them your new account details (you'll be able to update most of them online). 
    With knowledge of these dates, make sure there is sufficient money in the correct account for paying your priority bills. Keep a close eye on your old account if any priority bills are still coming from there (or manually pay the bill after getting the bill and before it's due so the direct debit amount is reduced to zero)
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
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