DMP and Bank Accounts

SteveZ_3

If one was go go down the DMP route, would one have to close all bank accounts?
I have two at the moment...

Thanks

Steve

THE_LONE_RANGER_4

close them is best and open a new basic bank account and start from there

SteveZ_3

Thanks LR...
Please excuse my ignorance on this but why is it best to close both?
One is in credit each month, the other has an outstanding O/D...

I'm not at all sure what my 'best course' is here..

All I do know is that since the yanks took us over and forced us all to take a pay cut I am now £500 a month into overspend and, frankly, panicking....

Hobsch

Hi

I am with Payplan and have 9 creditors. I had 2 accounts and one was not used - just kept it for extra income from ebay etc. although it had cheque book etc.

So when I started my Payplan set up my other bank account was shut down but this one has stayed with me. They also gave me a credit card (although I have refrained from using this with a limit of £800) and have been fine with me being on a DMP.

So my suggestion is to keep the second account. I am not an expert however.

TallGirl

It is best not to have any money paid into banks you owe money to as they may otherwise feel like helping themselves to your wages. Many banks and financial institutions are linked so if you have an overdraft with one bank and is within your overdraft but are in arrears with your credit card which is also owned by the same bank they could decide to withdraw your overdraft at anytime. Therefore only use a basic bank account with no overdraft if you are thinking about going into a DMP. Please make sure you choose carefully as many charge large sums, Payplan is completely free and you can visit Payplan.com to you will find more advice on basic bank accounts.

Hobsch

A good point TallGirl on the banks/cards etc being owned by one institution. If it helps my account in arrears was Barclays and my 2nd account was Firstdirect (Internet banking) which is owned by HSBC. First Direct have been very good.

SteveZ_3

That's the same position as me...
My wages are paid into an account with the Halifax, and this is in the black, at the moment...
(I have some money to throw at one of my credit cards, just got to figure out which one)
The other, which has an overdraft is my old one with Lloyds..
I assume any paymets to the DMP would come out of the Halifax, or do I create another one strictly for the purposes of paying the DMP?

Steve

System

Steve

PM me your email address and I will send you a spreadsheet that if read inconjunciton with a thread I started makes sense. It basically tells you with creditors have what associations with banks.

Lenny