DMP or IVA?

Tomh1

It's much appreciated - Thank you all

Tomh1

And just for full clarity I will continue paying the HP payment on the car so should be no fallout from this. Also this was part of the stepchange plan.

RAS

OK, so you also got a bank account that's not associated in any way with any of the banking groups to whom you owe money?

And if you've moved DDs, you didn't use the switch mechanism as that allows creditors to re-instate cancelled DDs?

Tomh1

Good afternoon, RAS. I bank with First Direct. The only potential crossover I can see is with the HSBC credit card.

Do you recommend another bank account?

RAS

You would be advised to get a new bank account as they are part of the same banking group, asap. Basic bank accounts or Monzo do not do the same credit checks as main stream one. There's no overdraft, but you can set up DDs and standing orders (which you need to use to pay creditors). Do not use the switch mechanism, organise your salary and then manually switch each DD you need to keep.

Shift any spare out of first direct as soon as you know the last DD you need to keep is paid.

Tomh1

Thanks, RAS. I am now a Monzo customer so that is something else ticked off the list! Pay day rolls around on Friday and it is very much needed. Bill day for debt would usually be the 27th so I have some anxiety in not actually making payments this month. However looking forward to it becoming the new norm whilst awaiting defaults before setting up the DMP.