DMP - do i have to include my overdraft into it?

HELENC1984_2

quick question guys

have joined DMP beginning of the year, i have one overdraft included in my DMP (HSBC £560) but i now bank with santander, of which i have an overdraft of £850 with and am quite close to it. As i am going to get a bonus at the end of the month (hopefully, touches wood quickly!!) i am hoping to use it to pay off my overdraft and bring me back into credit as well as pay a lump sum to my DMP to decrease my payments.

Is it essential to add an overdraft to my DMP if i cant be bothered to change bank account, its just my current account that i have with santander and i dont have any other cc's, or loans with them.

if i join a DMP also, is it eseential to close the bank account that you're with, as i notice a lot of people move bank accounts to a basic account once they start?

any advice, much appreciated!

Thanks

Tixy

You shouldn't have an overdraft outside of your DMP, as one of the requirements of your DMP is that you don't take out any more debt.
Did you have this account before you entered the DMP? Were you using the overdraft before the DMP? Who are you doing your DMP with?

I guess you could wait and pay it off if its going to happen at the end of the month, but you should not use the overdraft again - if your other creditors see you are still using credit then they are more likely to reject your DMP.

You don't need to close a bank account specifically because you are going on a DMP, it is only if you owe the same bank other debts. That said people often do switchto a basic account or ask their current bank to take away their overdraft facilityso that they cannot go overdrawn by accident.

HELENC1984_2

thanks for that

yes i had the account before and it was already maxx'ed out but what i might do is pay off overdraft and then close it and get a normail account, well i have another one for nationwide so might use that instead. didnt realise creditors could check your bank accounts to see if you have sustained anymore debt, (maybe rather naive of me so apologies!)

its come to the point where i dread my phone ringing and the post coming, just hope they sort it all out with my creditors sooon!!!


xx

HELENC1984_2

i do have my mortgage with halfax though, and i have a cc with them also, will this impact on my mortgage when i next go to renew it as i am on a DMP with one of their debts? I'm starting to panic now....

Superbiatch

You will find it hard remortgaging with anyone. Your current provider might well swap you onto a 'fixed rate' - this is what I was offered.

SB x