considering a dmp - which banks are linked?

bigbird68

Hi, i was made redundant last year (i was earning £26k), before i was able to get a new job, my mother was diagnosed with terminal cancer. I lived off my savings until she sadly passed away in september. I started a new job in october (i now earn £17.5k) and am unable to pay my unsecured loans and credit cards. I always ensure my mortgage and household bills are paid, but i am now forced to walk to work (4 miles each way) as i cant even afford the bus fare after i have been paid. Each month i owe more on the credit card and loans due to missed payments, i asked my bank for help but they say my credit rating is too low for a consolidation loan. I gave up smoking in january to save money (hard after 30 years) and sold all my shoes and boots on ebay to make ends meet and im so desperate and depressed ;o( i contacted cccs today and they have advised me to open a bank acct which isnt connected to hsbc or santander (abbey), as i owe them money, but i dont know which bank to use? I dont want to lose my flat and can afford the mortgage and houshold bills, but due to change in circumstances i cant afford to pay the credit card and loans. Please help.

Tixy

Hi and welcome

This list shows which accounts are linked and so which to avoid whilst entering a DMP - http://www.payplan.com/debt-news/2011/01/20/right-to-offset/

Barclays and co-op basic accounts are recommended quite a lot on here.

Good news that you have gone to CCCS for advice and they are helping you, going on a DMP can feel scary and its not something to go into lightly but it sounds like it could well be the right option for you and for a lot of people its a real relief once its set up and you feel like you can afford to live again and afford things like your bus fare.

bigbird68

thank you for your advice Tixy, i am awaiting ccs to send me by dmp pack. Barclays bank also look like a good option for me. CCcs have now advised me i should be debt free in 6 years on their plan....do you know if after those 6 years i will have a good credit scoring as i was planning on selling my flat and moving in about 6-8 years but wonder if this will affect my mortgage application?
Thanks again ;o)

Tixy

Its not always easy to tell how your DMP will pan on.
But in a ideal situation your creditors will issue defaults soon after you go on your DMP. These stay on your file for 6years and so in say 6.5years your credit file could be clear of them all.

The reality is it doesn't always work like that, some creditors won't issue a default straight away, sometimes they will put arrangement to pay on your file and then only enter a default at a later point - this would mean your file was affected for longer.
Also there is always a possibility on a DMP that a creditor will decide to take you to court at some point - if they do that that would mean a CCJ on your file for 6years from whenever they take court action so could be on a while longer.
(Court action isn't that common on a DMP but it does happen sometimes).

BigCraigJohn

I think Opus(formerly Citicard) are under HBOS also.

theerroll

Go for a natwest step account, build your credit rating if you manage your account well eventually youl get an o/d then c/c. Write to your creditors re. Defaulting, go to the top, speak to a human being who can override the rules, not a bunch of employees who are trained to say the same things...

Thats not a reflection on these people they can only do so much though,
Be persistent, be firm, the only way is up.