Self Managed DMP Advice please...

Singsalsing

I've done it! I've finally admitted to my partner exactly how much debt we have. I feel better already. After weeks of reading through forum posts and site pages, we've decided to try and organise a self-managed DMP.
At the moment, our loan and credit cards are set up on Direct Debit. We are only paying the minimum payments and are constantly overspending each month.
We are in the process of completing our SOA and working out a strict budget. We are cancelling SKY and switching to freeview. We've switched to cheaper mobile contracts, Utility suppliers, Internet suppliers and ordered an Oyster card for my partner. We've even got stuff listed on ebay and we are organising a garage sale for as soon as possible. I'm even planning on trying to sell my car and buy one that's cheaper to run and insure. We're also going to start living on cash only from the 1st of the month.

My main question is at what point do I stop the direct debits? Do I cancel them before I send out offer letters or do I need to wait until they all respond? My credit rating is shot anyway due to a huge dispute I am in with HSBC.
Any advice from anyone who has done all this before would be greatly appreciated.

Singsalsing

rayday2

Firstly it is brilliant what you have done to cut back but make sure that your budget you send out to your creditors is generous for living off as you don't want to lower payments later if you can help it.

I have run my own DMP for over two years now and have savings accounts all over for allsorts and its quite a shock having money left over if you are used to living on credit lines like we were.

Have you set up a neutral bank account yet? One that is not connected to any of your creditors as companies can take monies out.

I during the set up of this account cancelled direct debits and then sent out a letter telling them I was in trouble and offering them a £1 token payment which gave me breathing space for a month I also asked them to confirm the account balance.

Then I felt I had enough money in my new bank account to live on and then sent out offer of payment letters.

Yorkmackem

I think that admitting to your partner as to the extent of your debt is one of the hardest things to do, but it's such a relief afterwards.

Have been on a DMP for about 6 months now and once I'd decided on this route, I cancelled all direct debits whilst it was being sorted. Like you, my credit rating was shot to pieces so the defaults, etc. made no difference. It will however have a similar effect on your partner's credit rating so I would clear this with him / her first.

The BIG downside to this is that your creditors will bombard you with calls / letters on a constant basis until your DMP is up and running. You might want to change your phone number and go ex-directory.

xgingerx

Hi York , just wanted to know as im with CCCS, with them they have 6-12 monthly reviews, how does this work when you do it yourself ??

thks

rayday2

I do my own reviews when my circumstances change - usually each financial year or if a creditor happens to write for more money. To be honest two years into a DMP they go very quiet so its been when I choose to do them.

Cleosmum

I would cancel the direct debits now and then set up your token payments by standing order. Good luck with it all!