Payplan

wonderstuff

Hi folks, you've always offered good advice in the past so just wanted to check something.

After months of avoiding the issue, Ive finally contacted Payplan with a few to sorting my finances out.

One of my main issues is the fact I got swallowed up in the payday loan and provident loan downward cycle, which unfortunately im still on. More than likely without these I would be able to sort everything out myself.:rolleyes: Anyway do DMP's take these into account and if so does anyone have any experience of how they are likely to react?

My other question is slightly more trivial, but I do sell a few things on ebay and the like and wondered if thats to be included in my income, or if I have to declare it to Payplan. Nothing major I just tend to buy and sell games/cd's/dvds. Probably no more that £50 per month.

Thanks in advance:beer:

wonderstuff

& sorry one other question. Should I change my bank account? I am with Natwest and a sizeable portion of my debt is a loan with them.

Thanks again

Tixy

Hi Wonderstuff

All your unsecured debts can go into your DMP this can include provident loans and even payday loans.

I would definatley suggest you open a new basic bank account away from Natwest and not with an organisation you owe any money to - here is a list of basic accounts -http://www.moneymadeclear.fsa.gov.uk/pdfs/bank_accounts.pdf

With regard to the ebay - if you are buying and selling to make a profit legally you should be registered as a business with HMRC, you should complete an annual tax return and pay any tax due on any profits. If you were registered as a business then you should include this income (profit element) in your DMP.
However if you were just selling personal possessions then you don't need to register as a business or include it in your DMP.
I am sure there are plenty of people who would neither declare the income to the revenue or to their DMP company - I am simply giving you the legal position.

wonderstuff

Thankyou for the response.

It is only personal stuff so I think Im ok. Im more worried about them thoroughly checking all my income and obviously ebay isnt guaranteed monthly, so if they saw an extra £50 or so each month for the past few months, they may want to include it.

I'll get on the bank account thing anyway I think. Natwest have been a nightmare this week with charges & stuff. (yes Im looking into the reclaiming bit;))

Thanks again

Deep_In_Debt

Try Barclays for a basic account. They offer a proper Visa debit card as opposed to an Electron now but be sure to ask for the basic account otherwise you will probably get rejected if they put it through as a normal account.

wonderstuff

Thanks Deep in Debt, but as one of my debts is with Barclaycard, Im not too keen on using them.

Just applied on line for the Halifax Easycash account which seems as good as any.

Tixy

If anyone saw the income going in (and I presume you mean the bank seeing it on your statements) then I would just say you have been selling some personal posessions to make ends meet. I'm not sure that it would occur to them to question it.

But a new account is a good idea anyway to protect you from setting off.

Deep_In_Debt

Still worth trying Barclays - they are one of the few BR friendly accounts. My ex oh owed them loads, went BR and still opened an account with them so may still be worth a try?

wonderstuff

Thanks again guys, Its really appreciated.

When you have debts you tend to get a bit isolated in your thoughts. Coming on here is a major inspiration.

Payplan have called and arranged a telephone appointment for Thursday. Really feels like a weight lifted already

wonderstuff

Could some kind person who is with Payplan clear something up for me.

I keep reading on here about people on DMPs arranging payments themselves, but I was under the impression that you made a single payment to payplan and they sort it out.

It doesnt really matter either way I suppose, was just confusing me is all.

Oh and how long does it usually take for it all to be set up? I get paid tomorrow and so need to know wether to try and make the minimum payments I usually try and make or just to ignore them for now.

Thanks again.

ps. I know I could ask them tomorrow when they call, it was just bugging me.

Tixy

Well some people do self managed plans so they take advice from one of the charities but actually arrange their own payments.
Or it could be people setting up a DMP which can take 6weeks so you have to sort out token payments for a month or 2 - other than that I'm not sure, mostly people do make a single monthly payment to their DMP organisation.

Payplan will let you know how long to set up. You are likely to have to sort out 1 more month. Some people try to manage making the minimums but Payplan may advise you to just make token payments of £5 or £1 each to your creditors and send with a letter which says you are seeking advice from them (they will give you a template for this letter I think -CCCS does).

(I'm not actualy with Payplan or on a DMP but thought I'd answer as you slipped to page 2!)