Hiding your debts? Think you can cope on your own?

rising_from_the_ashes

Hi RG first of all sorry to hear the troubles with your relationship. Yes, I can understand the feelings of betrayal/anger etc but to just up and go is very unforgiving IMHO....

I'd agree with Wannabe_in_credit and Katsu consolidation is rarely the answer - only 15% of people who do it end up without getting into more debt (I consolidated 3 times before I realised I was getting nowhere!). A DMP may well be the best option and although I've no personal experience as I slogged it out myself as didn't realise there was another option, everyone I've read about/talked to on the boards has sung the praises of the charities and feels so much more in control and less stressed once everything's sorted out.

You will need a new basic account and, no, there will be no overdraft of anything like it available - one of the terms of a DMP is that you must not take out any new credit - so it's vital that your SOA is realistic (eg where costs fluctuate in different months, ensure you've looked at an annual spending figure and divided by 12 and not just put one of the monthly costs in).

Post up your SOA when you get a chance and I'm sure you'll get suggestions of where cuts may be possible. Wishing you the best of luck.

Rochdale_Guy

Thank you rising from the ashes.

I shouldn't have even considered an account with an overdraft facility, how daft am I

I should have read this too, taken from the MSE basic bank accounts page:
http://www.moneysavingexpert.com/banking/basic-bank-accounts

What is a basic bank account?

There's a tragic problem in the UK with banking exclusion. If you are one of the people who can't get an account, it's a nightmare.
Yet the under-publicised route is a 'Basic Bank Account'. These are specially designed products for those with poor credit scores.

As the name suggests these are just a place to store money and pay out of, without an overdraft facility or any in-credit interest.
Yet some do give you a debit card, so you can make payments in stores and online and all allow you to set up direct debits - good news as this usually means you get things cheaper.

rising_from_the_ashes

I have one that I opened so I could pay cheques from E*bay etc in somewhere (not a branch of my own bank where I live or work & more than happy with the service I get from them so I didn't want to move).

You need to check the new bank has no links to any of the cards/debts you have so, for example, if one of your cards was with Halifax, you wouldn't chose an account with Lloyds or Bank of Scotland etc.

This page has some really useful info about which financial institutions are linked: http://www.payplan.com/debt-library/miscellaneous.php (it is slightly out of date as doesn't show HBOS as being linked to Lloyds or that Clydesdale Bank and Yorkshire both come under the wing of NAB) so before doing anything, I'd suggest double checking either with a debt charity or popping a question on the board and someone will know.

The Co*op do a good basic bank account as do Barclays which people seem happy with. HTH

Rochdale_Guy

Thanks again.

Will apply for a basic Co-Op account tomorrow:
http://www.co-operativebank.co.uk/servlet/Satellite/1193206368595,CFSweb/Page/Bank-CurrentAccounts?WT.svl=copy

...especially as they are meant to be very ethical and Rochdale is their birthplace :cheers:

scared-sick

rising_from_the_ashes wrote: »

I have one that I opened so I could pay cheques from E*bay etc in somewhere (not a branch of my own bank where I live or work & more than happy with the service I get from them so I didn't want to move).

You need to check the new bank has no links to any of the cards/debts you have so, for example, if one of your cards was with Halifax, you wouldn't chose an account with Lloyds or Bank of Scotland etc.

This page has some really useful info about which financial institutions are linked: http://www.payplan.com/debt-library/miscellaneous.php (it is slightly out of date as doesn't show HBOS as being linked to Lloyds or that Clydesdale Bank and Yorkshire both come under the wing of NAB) so before doing anything, I'd suggest double checking either with a debt charity or popping a question on the board and someone will know.

The Co*op do a good basic bank account as do Barclays which people seem happy with. HTH

Ooo...I didnt know Lloyds was linked to Halifax. I have been trying to set up a new account and was looking at them, pleased I didnt now as one of my main creditors is halifax! So thanks for this!

rising_from_the_ashes

scared-sick wrote: »

Ooo...I didnt know Lloyds was linked to Halifax. I have been trying to set up a new account and was looking at them, pleased I didnt now as one of my main creditors is halifax! So thanks for this!

"Lloyds Banking Group
Halifax is a trading name of Bank of Scotland plc. Bank of Scotland plc is one of Lloyds Banking Group plc's group companies" taken from http://www.halifax.co.uk/helpcentre/fscs.asp HTH

If you do a google search with the name of your creditors, you should be able to find out who they're linked to (or ask on here, someone will know)

scared-sick

Just looked a a payplan bank account link and it says that ROYAL bank of scotland are linked to natwest. Is this the same as the BANK of scotland who are linked to halifax or is it a different bank.

OMG its a bloody minefield!

Millie_Millsters

scared-sick wrote: »

Just looked a a payplan bank account link and it says that ROYAL bank of scotland are linked to natwest. Is this the same as the BANK of scotland who are linked to halifax or is it a different bank.

OMG its a bloody minefield!

They are different banks.

Hang in there and good luck.

Standingtall

Good morning Rochdale Guy:). I bet you wake up today with a sense of purpose after all the advice you received last night:T

One of the comments you made stood out from the rest and it is one that so many of us have made;

"what if i run out of money?"

I can only say that this unlikely. The budgets you are allowed by CCCS and Payplan do allow for a contingency fund and are fairly generous. Conversely this is why the estimated time for you to pay off your debt would be longer than you would prefer.

It would be unwise, however, to lower the living allowances in case you have an emergency such as car repairs.

A suggestion to bring down the length of your DMP would be to save any 'spare' cash to offer full and final settlements in a few years time. There are lots of threads about this on the forum.

Good luck:)

BevieB

Rochdale_Guy wrote: »

Thanks both of you

I did complete an online Debt Remedy with CCCS late last year but never completed it by sending off the paperwork due to various reasons. That suggested I only have £144 free a month to offer creditors....
I guess thats why it said my DMP would take 12 years to pay off

I need to do a new one ASAP with something else to add then will post an SOA.

Hi, Rochdale Guy, The thing is that if CCCS debt remedy shows that you only have £144pmth available to repay debts how would you be able to afford the consolidation loan as over twice as much per month. Through personal experience you most prob find that you would start to pay loan and then start using cc for other expenses increasing debt.
We are on a DMP and it has made us budget and live within our means. It is hard but hopefully in your situation although CCCSstate it would take 12 years to repay as time goes on you can increase the amount paid to CCCS and therefore reduce term.
The most important thing is to be honest with your self. We wished we had started our DMP years ago instead of fooling our selves that we could carry on or some thing would happen to help.
Good luck which ever route you choice.