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Lbm

I have this week had my LBM. I have spent all day today gathering information and completed cccs debt remedy questionairre and it came back that we should go on a DMP. I am fine with this but a few things I am having difficulty with that I hope someone on here can help me with.

We have total debt of £36000 and have a joint income of £2200 per month. Of which £3250 is with an overdraft with Lloyds TSB, I need to open a new bank account elsewhere but not sure which would be the best bank to go to. Do I need to tell the new bank I am doing a DMP? What is the best time of month to change an account, we get paid on the 25th of the month can you give a date you would like to start the new account.

We are currently not in arrears with any of out borrowing but do have 3 credit cards, 2 loans and the overdraft. I have 2 credit card statements here waiting to be paid, do I try and pay the min payment this month while the DMP is being set up or send a token payment along with the template letter from cccs.

Am I going to get strangers at my door demanding payments? I have 2 children and this would be the worst thing them picking up on the stress.

Sorry there is so many questions but my head hurts today from trying to get things in place. Hope someone can help.

Comments

  • Hi I have just begun to set up DMP with CCCS I like you bank with Lloyds. I have now set up a new account with Natwest and over the last week have transfered all DD payments (mortgage, life ins,council Tax etc) over to my new account I have also made sure that my wage from now on goes to my new account. that way I can now cut ties with Lloyds. I made token payments to my creditors (no more than £5) and have sent them a copy of the template letter from CCCS. It is quite daunting at first but I think it is just because we are facing up to the situation we are in but I am now sleeping at night.
    I wish you all the best take it one step at a time.
  • glimmerofhope
    glimmerofhope Posts: 588 Forumite
    edited 17 March 2011 at 5:33PM
    Hi
    Welcome to the forum
    I have found so much help and support here and hope yoou do too.

    Please see below link it shows all the basic bank accounts available
    Please ensure that whoever you choose have no links with your lenders - if in doubt post here and people can advise
    http://www.moneymadeclear.org.uk/HTML/en/products/bank_accounts/basic_bank_accounts_popup.htm

    It would be an idea to check with your employers that latest cut-off date for changing banks as this will vary with employer depending on when they process the salary run.

    It is highly unlikely you will have people knocking on the door, maybe a few phone calls but you can request they only contact you in writing and there are templates on this site to send off (To be honest I had no calls at all and you could always just not answer the phone)
    Hope the above helps
    Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbour. Catch the trade winds in your sails. Explore. Dream. Discover."

    :pOfficial DFW Nerd 1365:p
  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi

    This is a useful list of which banks are connected in terms on the ability to offset money. http://www.payplan.com/debt-news/2011/01/20/right-to-offset/
    You need to choose one which isn't connected to anyone you currently owe money to. You don't need to tell them you are doing a DMP.

    I would say just pay a token payment to your creditors this month whilst the DMP is being set up - except for any creditor connected to your current bank account - I would try to maintain payments to them until your new account is set up. This should minimise the risk of them offsetting or removing your overdraft before the new account is ready to be used.

    As glimmer says you are a long way from having people calling at the door. Its very unlikely it would happen at all, and if you find debt collectors are threatening this in a few months time there are templates you can send to stop unauthorised visits.

    Good luck with your DMP.

    I would open an account as soon as possible. You can then start using it once its open and you have informed your employer/any benefits have been paid in.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • petsy1
    petsy1 Posts: 5 Forumite
    Thank you to all that have posted a reply so far, I am finding it very reassuring to find we aren't the only ones in this mess.
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