Help Required!

deniseb90

Hi, I wonder if someone could help/advise me. I've sent off my cccs papers on a DMP but am still unsure if this is the right thing to do as I know that I will have to change bank accounts and then will only be able to have a basic bank account. I'm frightened that I won't be able to buy things on line (ebay, amazon, etc) and also I wanted to know what is the best basic bank account?

Also when do I start to apply for the new bank account - once the DMP is under way or before?? Sorry for the questions but it's all very new to me, I've never been very good with money! I have debts equalling £15,000 on a loan (with A&L my bank), Egg credit card and Barclaycard and various store cards (stupid girl!!) - my sister asked if I thought it was the right road to go down or whether a consolidated loan would be better??

Any help gratefully received - I've looked at hundreds of posts on here but am still in need of a bit of advice!

Many thanks!

dx

rugbymum

Hi sweetie
Didn't want to read and run.
Well done on taking the first steps to being debt-free :j
If you have any debts with your current bank, open a new account asap, that way you can pay stuff in without it being in danger of being taken by your current banker to offset any debts you have with them.
The majority of basic bank accounts come with a card that you will be able to use online & in shops. It will probably be a Visa Electron or similar. There is a list somewhere (can't remember where), but off the top of my head: barclays, lloyds & co-op all do good (ebay, amazon, online & shop type cards).

~Beanie~

A consolidation loan is rarely a good idea - unless you have loads of self control, you will just run the cards back up again and will then be repaying a loan AND cards (like me ).

I would also open a new account ASAP and get your wages switched over etc before the DMP starts.

kimdegsidash

Hi d
CCCS should have sent you a list of basic bank accounts in their help pack. Some of the accounts do still offer a debit card (solo, electron) and you should still be able to pay for things online (don't go spending too much though!;) That's what got us here in the first place!)
As you have already mentioned you are not good with money, a consolidation loan would be a risky prospect, as you are more likely to spend on the credit cards again, and end up like a lot of us on here with both debts and even worse off. You have to be super disciplined and cut up your credit cards.
No moneysaving stalwart would advise taking out a consolidation loan, but I'm sure your sister meant well.
Good luck.

newlywed

Hi, I have an A&L premier account but specifically requested it to be with no overdraft, applied for before the start of the dmp. That comes with chequebook and visa debit card so fine for internet purchases (but not guaranteed like a credit card).

I also have a co-op cashminder account (basic account) which comes with a Visa Electron card. Most places accept this, although not quite all.

Personally, I consolidated to pay debts, then spent more the credit card, then consolidated and promised I would only keep the card for emergencies, then had to consolidate again etc etc. It's a vicious cycle and I would only recommend going down that route if you are 100% sure that you will cut up all your credit cards and store cards and NEVER get any more credit until the loan is paid.


For me, CCCS have been brilliant and my only regret is that I didn't go down the DMP route sooner, years sooner :rolleyes:

deniseb90

Thank you all for the quick replies! I am looking at the Barclays Cash Card Account - but my credit card debt is with Barclaycard - would this be a problem?? I already have a Barclays account but it's only a Savings Account which my child maintenance goes into?

It's all really scary changing Banks as I've been with A&L since I was 14 (now 38). I also too don't think I'll be able to get on with a consolidated loan as I'm not very disciplined (especially with store cards etc).

Thank you all once again, I'm terrified, but determined to become debt free because I've been living in la la land for the past gawd knows how many years and really don't want to be setting my son such a bad example!

Thanks again!!

newlywed

You should chose a bank that you don't owe anything to at all. And one that is not linked to any bank you owe money to - eg First Direct and HSBC are linked, Halifax and Bank of Scotland are linked, Abbey and A&L are linked etc.

Most bank Terms and Conditions include a "right to offset". That means that they can potentially take money from your savings account or any other account that you have with them, to pay off some of the debt that you have with them.

Apparently it doesn't seem to happen that often, but legally they can still do it if they want to!

I'd be inclined to move the child maintenance payments too - just in case.

Personally, I got my new bank account and moved my wages and all my important direct debits over to the new account before the DMP started.


Edit: I was with First direct for about 15+ years before the DMP - moving banks isn't as bad as you think

deniseb90

Thanks newlywed, so Barclays seems out of the equation then - it's only A&L, Barclaycard and Egg - which bank do you think I should go for?? I looked at Nationwide? THey seem to get a good write up - looked at Yorkshire Bank but the nearest branch to me is over 30 miles away! Thanks again, so glad I found this site - been such a help and it's going to get me back on the straight and narrow!!

deniseb90

Have just applied online for the Halifax Easycash account - why is it that when you go on a DMP you can only have a basic bank account - if I'd had applied for their other current account would I have been rejected once they realised I was going to be on a DMP? Just curious really. Anyway let's see if I can get this account and then see what happens when I get all the info back from CCCS - thanks again everyone!!! dx

newlywed

I picked Co-op as you can pay in cash and withdraw money from any post office - and I work just near a small post office

You don't need to go to an actual branch - ours is in the city centre and costs a fortune for parking and a hassle to get there in the week due to work.

Others have recommended a Natwest account - think the basic one is a Step account.

newlywed

deniseb90 wrote: »

Have just applied online for the Halifax Easycash account - why is it that when you go on a DMP you can only have a basic bank account - if I'd had applied for their other current account would I have been rejected once they realised I was going to be on a DMP? Just curious really. Anyway let's see if I can get this account and then see what happens when I get all the info back from CCCS - thanks again everyone!!! dx

Most other current accounts come with an overdraft That's taking on more credit which you promised not to do when you sign the DMP agreement

Plus if you need a DMP, chances are your credit rating is up the swanny anyway so they might refuse you. Co-op refused me a cheque account online but sent through the cashminder application forms.

I did get a cheque account just before the DMP but specifically requested no overdraft - the staff in the branch looked at me like I had two heads when I said what account can I have with no overdraft at all - why would you not want an overdraft??? :rolleyes:

So I applied online and for the overdraft section put down £0 overdraft

Later on, once in the DMP, Co-op refused me a normal account and only offered me a basic one.