New to DMP

ProvidedFor

Hi - I'm grateful to have read so many posts here that are very helpful.

I have c. £80,000 of debt. I have always paid the minimum amounts and have never missed a payment in 35 years. I had considered 're-financing' 'again' but I didn't do it. In the last 4 months, this has become more and more unmanageable. This month I used pretty much all credit to see me through to payday. I earn a decent wage (90K) but have considerable high priority payments.

I haven't done a SOA but I plan to do that today. I want to self manage a DMP as soon as possible.

My DDs for my (6) credit cards and loan (Lendable) will leave my current account (with an overdraft to the max) in the next day or so. I want to take action very quickly because unfortunately, I will lose employment in the coming days.

I have read the posts very quickly over the last few days, and want to check with experienced people here, should I simply cancel the DDs today? even though I don't have a full plan as yet?

I want to open a current account today that isn't associated to any of my creditors. Would a current account with Revolut be sufficient or another online bank account or would the advice be to stay with a traditional current account?

Lastly, is there any benefit to keeping one credit card and maintaining the minimal amount to keep a line of credit? I know that sounds like a stupid question but I wanted to know if that is something anyone thinks is a good idea.

Thank you.

sammyjammy

Sorry to read and run but get those DDs cancelled now before its too late.

fatbelly

I have bookmarked your thread so I can look at your soa when it comes. What will it show as income now that you have lost your job?

If you were struggling before, then you will struggle more when out of work so yes, cancel Dds to nonpriority debts immediately.

I see no reason why a Revolut account would not work for you.

Normally we would not recommend keeping one card open. But what is the plan for the next few weeks? If that is the only way of getting through short-term difficulty then you do what you need to do.

Rob5342

Any current account that's not linked to your creditors will do, I'd say the online ones are better then the traditional ones as they tend to hedge better apps and better budgeting features.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/82152537#Comment_82152537

Totally agree with this.

OP I've opened Monzo and Starling in preparation for my DMP starting. Leaving Barclays and Halifax behind after 20 years. I would highly recommend either for your needs and as Rob says their budget/savings spaces are really handy. I've never got to the start of a month with all my bills already covered since 2016 but October's is all there ready and waiting.

All non priority debts DDs have been cancelled in the past fortnight and so far only 2 emails and 2 letters from Barclaycard.

You're in the right place for the best advice and support. Good luck, I'll be following with interest as my indebtedness is circa £80k as well.