Cancelling Direct debits :(

Pinkylouloubell

Hi, just needed some "more" advise from you folks.

I have just had a conversation with a debt charity re: IVA as our most realistic option.

He advised that I should cancel all my direct debits with my "creditors" (see below) and only send them token payments for now.

Is this leagal??

dont get me wrong I am not disputing what he is saying at all and am expecting the letters and phone calls to start next week if I do this, but this seems soo wrong.

He said to just say that I do not have the money to pay them right now while I sort the IVA out and I need to priorotise my outgoings, i.e Rent, Coucil Tax at the top and put these at the bottom.

I have every inention of paying them back, but do not have any cash avaiable at tghe moment, but am a bit scared to cancel all the DD's.

for the last few months we hav been taking from Peter to pay Paul!!

Please advise>>>>

Cleosmum

Yes its legal, if you bank online then you should be able to cancel online, if not then give your bank a ring, they will do it for you

SuzySu

Please take his advice and cancel all DDs to these creditors - you cannot pay them if you do not have the money. It's that simple. As long as you are dealing with a reputable debt charity (eg one of the ones recommended on here) then the advice should be sound.

The most important thing at this stage is to make sure you are speaking with a free (ie. not for profit) charity such as CCCS who will not be creaming off their fee. All monies paid should go entirely to your creditors, even if it is just £1 a month to start with.

I don't know enough about this to tell you that it is (or is not) legal, but it is what was recommended to us too. Just make sure your priority bills (mortgage/rent, council tax and utilities) are paid in full.

It is a scary place to be right now, but the best thing you have done is to post here. If you haven't done so, post your SOA for these good folks to look over - they have suggested some great ways for us to save some money.

I'm sure someone far more knowledgeable will be along in a moment - just wanted to wish you all the best sorting things out.

Pinkylouloubell

thanks suzysu,

Im a bit worried about what to say to the debt people when they start phoning up demanding money that we just dont have,
any ideas???

thanks

SuzySu

I don't want to give you incorrect advice, but if you are dealing with a debt charity you can tell them this. At least they will know you are taking your debt seriously and are doing something about it.

doelani

If the charity you are dealing with has given you a reference number and any creditors contact you just ask them to contact the orginisationa dn give them the referernce number.

If you do not have the money to pay your DD you are better to cancel them than be hit with a load of charges for not being able to pay them.

I have been in IVA for 3 years and once I contacted CCCS they gave me reference number which I just passed on to anyone who contacted me. I did not tell them I was considering IVA until the IP contacted the creditors which is what the IP advises. Take the Debt Charities advice on this. do not let any of your creditors make you feel you have to pay them as this will be seen as favouring one creditor over another.

GeorgeUK

Something else you were probably told, but might as well put it up.
Make sure you have your income paid into an account with a bank you don't owe any money. This way only you will have access to the money and the bank can't just take what you have in your account as you are in arrears with them.

Have a search on the board for others that are doing a DMP. This will put a serious dent in your ability to get credit for about the next 6 years, but you really don't want any more credit when you're struggling like this.

alone_and_fed_up

When you write to your creditors, you can request they only contact you in writing.

This is often an easier way to deal with people you are 'scared' of. You can then write back in your own time and not feel you have your back against the wall having to speak to them there and then. It takes a very strong person to deal with these people verbally and not crumble. I shake everytime anyone in authority calls and my debts are no where near a large as yours, so I completely sympathise with your feelings.

Pinkylouloubell

So if I write to them when making a token payment telling them to only contact me in writing, do you think they will do this??

sorry, but I am really clueless when it comes to all of this have been living with my head in the clouds for the last couple of ears.

alone_and_fed_up

They should comply with your wishes.

Do you have an answerphone service? And caller ID? I would activate these if you can and let anyone who does not comply with your wishes leave loads as messages as they wish and you can report them to the TS for non-compliance!!! (you need to keep a record though)