Switch before DMP

Fluffykittens_me

Hiya, just starting to stop paying debts ready for them to default before starting. Dmp after reading all the advise over the last few weeks. I have a loan and overdraft with Santander who I bank with. If I cancel the direct debits for my debt and then switch to Barclays will that work rather than having to change it all manually as I think that will just cause more stress? Thanks for your help. Just starting to stress about it all now. 

ManyWays

Some people run into problems using the switching service after recently canceling a DD as it can be reinstated with the new bank.
So the suggestion is that its easier to just move the DDs you want to keep manually

Grumpelstiltskin

When you switch you need a basic account, one with no overdraft. so will Barclays do that?

Also don't use the banking switch service transfer manually all vital direct debits and income.

Fluffykittens_me

Thanks, yes Barclays do a standard current account you only get an overdraft if you request it which I won't 😊

Fluffykittens_me

Can I just also ask, why does it have to be a basic account if I haven't got credit file issues as yet? If I sort all this before I then stop paying would that make a difference? I still wouldn't ask for an overdraft. 

Grumpelstiltskin

An overdraft is a form of credit which you can't have whilst in a DMP.

If you are in your overdraft in your current account don't worry it is just added as another debt.

Fluffykittens_me

OK that's great thanks. 

RAS

More importantly, a basic bank account does not require a credit check. So your chances of being accepted are much higher.

Fluffykittens_me

Thank you.

Scarlet_to_Black

Absolutely 💯 not, unless you want to spend your life on the phone to your new bank trying to get the ‘cancelled before switch’ direct debits that have been set up again on a loop by your creditor/s that you thought would never see light of day in your new bank because you wiped them off the list first. I had to get my new bank to block my old bank from setting up new DD’s every time I cancelled them. And the stress of seeing the DD in pending and whether it would disappear or £000’s come out of my bank, which I didn’t have. It drove me nuts.  I wish I’d taken the advice to manually switch! 

RAS

Scarlet_to_Black said:

Absolutely 💯 not, unless you want to spend your life on the phone to your new bank trying to get the ‘cancelled before switch’ direct debits that have been set up again on a loop by your creditor/s that you thought would never see light of day in your new bank because you wiped them off the list first. I had to get my new bank to block my old bank from setting up new DD’s every time I cancelled them. And the stress of seeing the DD in pending and whether it would disappear or £000’s come out of my bank, which I didn’t have. It drove me nuts.  I wish I’d taken the advice to manually switch! 

Thanks Scarlet

I tried to find your thread to explain, although I do use your case to warn people.

Hope you've got it sorted now?