DMP and new bank account

ANY_CHANCE

skintandscared wrote: »

Hi everyone. I'm new on here ... I wish I'd found this site years ago!!

I have been struggling for a while now, just managing to make the minimum payments on my cards but having nothing left to even buy food with, so the cards come out to pay for everything. A 0% card is coming to an end and I simply can't afford a hike in minimum payment.

I'm seriously considering phoning PayPlan or CCCS but I'm so terrified of what will happen. Will my employer or landlord find out????

Also, one of my credit cards is with Abbey National, who I bank with. I also have a £2,400 overdraft on that account which is up to the limit every month.

If I change banks now, move my bills direct debits and my salary payments, will the overdraft become one of my creditors?

Plus ... how do I know the new bank isn't in any way associated with one of the cards I've got? All the banks seem to be linked these days!!! I was considering going to Lloyds bank (for a basic account with a debit card, no overdraft) but I don't know if they are associated with any cards I have? The cards I have are:

Barclaycard
Tesco card
Lombard card & Lombard loan
Egg card
Post Office card
Abbey credit card

A quick chat with an advisor at the CAB has taught me that my monthly repayments could go down from £1250 to about £650, once they allow me money for food, etc. That would allow me, for once, to pay for things out of my own salary and not use credit cards ever again. But I'm terrified of my employer or landlord finding out and sacking me or kicking me out of my flat!!!

Anyone got any words of advice? Thanks in advance...

Hello
I can let you know how i have got on with LTSB
They have let me openm a basic account that i can access on internet, which has been great because i can check the balance/ available every day.
Watch out because it is easy to get an over draft or credit card after you have been a customer over 6 months, thats what i have found out.

Not sure if they are connected or not to your creditors but someone more experienced will let you know.
In my case i am worried because i have debt with Halifax :rolleyes:

Just wanted to add that we are on DMP they LTSB checked us and still gave us an account xx

Good luck xx

poohbearmufc

I would apply for another account now, and do an online remedy on cccs... I am just starting with cccs and it is great, should of done that a long time ago...

Good luck, you don't need to be scared, you have taken the first steps..

Love

Nikki

Numpty_Monkey

I'll bet when you first posted tonight the 2 things you never expected where

1 options
2 a LOL

I didn't put this on before because i'm not sure if A&l are now linked with any of the other companies. and don't want to give false or wrong info

I signed up with A&L full internet access and debit card ,,,didn't signup for OD just started a DMP with CCCS and got £50 cashback through Quidco,


post your SOA on here I know your rent mortgage payment swill make me go
i'm up north,
but others will be able to spot things and the people here are great

skintandscared_2

You are right NM, options and a LOL are both unexpected bonuses!!!

I have applied online for a new account with Lloyds. I don't think they are linked to any cards I have. I don't have any accounts or cards with Lloyds, Bank of Scotland or Halifax.

My SOA for the main things (this doesn't include food, clothes and any socialising!) is:

Rent 700
My mobile 30
OH mobile 30
Virgin 95 (this is TV/BB and phone but am downgrading)
TV lic 11.95
Council tax 120
House ins 14.82
Car ins 33.19
water rates 32
gas/elec 92 (this is capped to 2011 with Scottishpower and was cheapest)

total 1,160.96

Debt repayments are currently: (this is just minimum payments)

Lombard loan 349.54
Tesco visa 300
Barclaycard 220
Egg Card 50
PO Card 70
Lombard mastercard 60
Abbey card 200

Total 1,249.54

Grand total going out £2,410.50

My income (without overtime) is £1,833 plus my partner gives me £150 a week when he's working, so best-case scenario we get in £2,433.00

That leaves £22.50 a month for petrol, food, clothes, car expenses, gifts and anything else.

I am speaking to Virgin about reducing our package to a lower one. The only thing is, we basically don't really go out at all and the TV and broadband are absolutely essential. My partner has mental health problems and often doesn't go out for long periods of time. I could also change my car insurance from fully comp to 3rd party, fire & theft because it's now such an old banger it really isn't worth much at all.

The CAB woman I spoke to said that using their financial calculator thingy they just take my necessary bills and then add in their average allowances for 2 people. She worked out that I would have £650-ish disposable income to offer to the creditors, which she thought would be enough to be acceptable on a DMP.

Deep_In_Debt

Hi and welcome.

I'm probably just repeating what others have said but there is no need to tell your employers or landlord. I'm on a dmp with CCCS (best thing I've done for a long while) and I worked in Financial Services as an advisor for a while (rubbish with my own money, but good with other peoples!) and I didn't tell them and they didn't find out either. The only time I would have a problem is if I went BR - which is one reason why I didn't. Am still in Financial Services but no longer in an advisory role so it's ok. Check your contract though and see if there is anything in your contract that may affect your employment if you were to go on a dmp.

In terms of banks, before my dmp - I banked with Abbey and had an Abbey card (MBNA). The overdraft is now included in my dmp and MBNA have been brilliant with me. I owe them 9k and they were the first to freeze interest and accept my dmp. Abbey bank on the otherhand, took a while.

I opened a Natwest Step Account on line - they are not linked to Abbey.

Good luck

sunshine38_2

Evening!

I thought I'd pop in and say "hi"! Wow, so many responses, are you feeling any more positive today.

I also just wanted to let you know that we do the same job - and my employers need not know anything (and they dont!) so I wouldnt worry on that front.

Keep posting and let us know how you are getting on.

Sx

skintandscared_2

Thank you all. I'm feeling a bit more positive today. Still nervous of when it all happens, but I'll take it one day at a time.

I don't get paid until the 28th of the month so I'm hoping I can have the new account sorted by then and all the direct debits changed. I'm going to get all my statements out so I can call CCCS or PayPlan (does it matter which?) and get the ball rolling....

clairegwen

I have just started the journey that you are about to take with a DMP. Like you, every month, I was robbing Peter to pay Paul and just getting further and further sucked into the big black hole.

What finally got me to do something about it was a rather 'threatening' phonecall I got from Mercers Debt Agency regarding my Barclaycard.

I finally found the guts early last week to tot up exactly how much I owe. It came to £54,000 (not good, but in truth not as bad as I expected!).

I then managed to pluck up the courage to speak to Payplan. They were wonderful, I really cannot speak highly enough of them. They have reduced my monthly payments from £1200 a month to just £133 (bearing in mind I am only working part-time at the moment). Now the drawback is it is going to take me 28 years to pay everything off (!!). They review your case regularly though and the hope is that I will be able to double the repayments each year, so it won't take nearly that amount of time hopefully.

I, like you, was confused as to which bank to go to for a basic account. There isn't a Coop bank near me but I rang them anyway today, and did it all over the phone. Apparently I will get a Maestro (sp?) debit card and will be able to pay any cheques etc into my account via the post office. I can have my salary paid into it. They couldn't give me an instant decision as to whether or not I had been accepted today though, I apparently have to wait a couple of days. I am slightly on tenterhooks that they will reject me but looking at the paperwork Payplan sent me, they only reject you if you are undischarged bankrupt or for previous fraud (thankfully neither applies to me).

The only thing I am unsure about is whether this debt is going to affect my credit file for the duration of paying back what i owe. If anybody knows the answer to this I would be really grateful (Though I might add, I never intend ever getting a credit card ever again).

I can't believe I have been under this black cloud for so long, and now finally its been lifted. The people at Payplan couldn't be nicer. I was expecting a bit of a telling off when I first contacted them, blaming me for being in this position in the first place, but they were totally understanding.

I feel I can start living again rather than going from month to month dreading answering my phone!

skintandscared_2

Thanks for all the positve messages about DMPs. I've filled in the online CCCS forms and they say I will have £515 to offer my creditors every month and it'll take me nearly 7 years to pay everything off, but I can't think that far ahead right now!!!

I'm seriously considering freezing my pension contributions for a bit. My firm take £155 a month from my salary before I get it, and then pay the same in themselves. That £300-odd a month apparently guarantees me a pension of about £3k a year - if it hasn't all disappeared in the currently financial crisis... I also make contributions to charity of £16 a month and I'll be stopping that as well. Every little helps...

My partner was told today that his boss has no work for him after tomorrow, so he's now looking for another job too. Great timing...

We're going on holiday in a month, for a week in Egypt. It's a friend's apartment we're getting for free and we paid for the flights back in March. Spends will be tiny 'cos we're buying food from the supermarket and eating in every night. There won't be any trips or nights out. Just lazy days by the pool then evenings pretty much the same as at home, except we'll be watching DVDs on a balcony in the warm air.... It'll be our last holiday for a VERY long time!!

skintandscared_2

Well my HR department have said I can freeze my pension payments, so that's £155 back in the pot every month. Plus the £16 charity contributions. that has made the difference between CCCS recommending a DMP instead of an IVA. I really didn't want to go the IVA route unless I absolutely had to.

I phoned Lloyds and have passed the credit/identity checks to open a new bank account. :j Just need to wait for the paperwork to arrive and I can give the new account number to work and change my direct debits. I presume I just phone up each company (ie rent, council tax, water, gas/elec, tv licence, insurances) and give them my new details?!