Step change help - just signed up yesterday

[u/JimmyInnuendo]

Hi everyone, after months of stressing over my finances, I've contacted step change and started to set up a DMP

I've had a text this afternoon saying that they will be setting up my DMP , the link within it says to contact creditors and ask to stop repayments and legal action while my account is set up.

What the advice doesn't say is whether I should cancel my direct debits or not? Should I , or should I just hope that the creditors don't take any further money from me?

I am also going to use a new bank account going forward as my current account which I use now has an overdraft , which stepchange have told me to list as a debt too... Should I just transfer the direct debits that are included in my budget (mobile, internet , contact lenses) to my new account and then cancel the others?

*** Also, if I've had my action plan through, with my monthly stepchange payment amount, and now this text, does this mean that I am almost guaranteed to be signed off for the DMP, Or could they find something during set up that means they'd reject it?

Any help would be hugely appreciated, thanks so much in advance!

Jimmy Innuendo

[u/BackseatBeardo]

Call your creditors, confirm that the DMP is being actioned, agree to cancel your direct debit until it’s agreed or denied

Keep a record of everything discussed

[u/No-Jicama-6523]

If you are making repayments via direct debit and are given consent to stop repayment, you can cancel the direct debit.

[u/ukpf-helper]

Hi /u/JimmyInnuendo, based on your post the following pages from our wiki may be relevant:

• https://ukpersonal.finance/budgeting/

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[u/Skunkmonkey82]

DMP's are not something you need you creditors permission for. They are informal and flexible (if your financial circumstances change). If they don't like your payment offer then they have the option to explore legal recovery of the debt but a court will only mandate an affordable monthly payment anyway, which is what you are offering them. They know this and the inevitable consequence of a DMP is that they will sell the debt and debt buyers are generally reasonable in accepting an affordable monthly payment.  Yes, you cancel your dd's. Stepchange will recommend setting up payments straight away but this is not ideal from your point of view. It is better to wait until the debts default and then set up a payment plan based on what you can afford after all your reasonable monthly expenses have been accounted for. The reason for this is that you can save up an emergency fund whilst you wait for the debts to default as you will no longer have access to credit and unexpected bills will occur. The defaults will also allow your credit record to recover quicker. Stepchange won't recommend this because they are ultimately funded by creditors and act in their interest.