DMP Started - New Bank Account Required -- HELP !

rigarella

Hello Guys,

I am new to the forum

Well today I officially entered my debt management plan:eek: I am pleased that I have made a step in getting debt free but today when speaking the them realised that Natwest will most probably close my account and that I will need to get a new account for salary payments and to pay my bills and my DMP.

I have made an appointment with Barclays but am worried I am not going to get an account. Any advise in this area? Should I be honest when I go in to the branch and let them know that I have just entered a DMP?

Thanks All

Rigarella

Tixy

Hi

Did your DMP provider explain that you need a bank account not connected to any of your current creditors?

If you owe natwest other debts, or have an overdraft that you are including in the DMP then you need a new bank account.

Are barclays one of your current creditors? Ensure you make it clear that your new bank account must not have an overdraft, as it would be against the terms of the DMP.
Most people in a DMP just go for a basic bank account, which isn't subject to a credit check. You don't need to inform the bank you are entering a DMP, if you choose to tell them it should not make a difference to acceptance as you won't be having credit from them.

rigarella

Hi Tixy,

Thanks for your reply. The DMP people did advise that I should get a new account but didn't really make it clear why, It seemed like an option rather than must.

I have a personal loan with Natwest. I have no credit with Barclays . I have never banked with anyone else other than Natwest.

Thanks for your advice

Rigarella

Time_to_face_the_music

Hi rigarella :hello:

Who is your DMP with?

You need a bank that is totally unconnected with any of your debts, we used the Co-op and have been very happy with them but Barclays or any other bank will be fine as long as there is no association with a debt

Tixy

If you have a debt with natwest, then it is definitely esesntial that you get a new account, otherwise they can offset any money/wages you pay into the bank account to pay off the loan arrears that will build up. Potenially leaving you with not enough to pay essentials or pay the DMP payment.

Who is running your DMP? - Is it with one of the charities or a free provider? Or is it a commerical one charging you fees?

loubie_lou

Agree with the others. I hope your DMP is with one of the free debt charities/organisations.

I'm not sure if Nat West is linked with Halifax, but they do something called an easy cash account, which is one of your basic ones.

rigarella

Thanks for all the advice guys .... I just had a little cry cause I had to tell my family and they want me to move home to get myself straight.

My DMP is with CCCS they are free I believe they are a charity, I thought the ones where you needed to pay more was defeating the object.

I was feeling quite assertive and as positive as I could be but now feel a bit deflated :-(

nfollows1982

OP, the first step, getting the DMP set up and getting things organised is a bit scary at first (I am only 3 months into mine, with a £22k debt).

I managed to open 2 seperate bank accounts, the Halifax Basic and the Co-Op Cashminder.

Both are really easy to open, don't give you an OD, and both offer debit card facilities.

I have my salary and DD coming out of one, and then transfer what is left into the other, so I can manage my money every month.

Give it a couple of months to settle down, see what the creditors all say and I'm sure you will feel a lot more positive soon.

FireWyrm

rigarella wrote: »

Thanks for all the advice guys .... I just had a little cry cause I had to tell my family and they want me to move home to get myself straight.

Sounds like they've known for a while and are breathing a sigh of relief on your behalf. There's simply nothing to be ashamed of. Dont be afraid to accept help now and again.

rigarella wrote: »

My DMP is with CCCS they are free I believe they are a charity, I thought the ones where you needed to pay more was defeating the object.

Quite right!

rigarella wrote: »

I was feeling quite assertive and as positive as I could be but now feel a bit deflated :-(

Why? You've taken the first step to debt freedom. Most people dont even recognise that they have a problem and even more dont care anyway until the wheels come off the economy and they're scratching around for a living having spent everything in the boom years.

I truly dont think many people even realise how precarious their financial situation really is and that they are never more than a missed pay cheque from disaster.

So, chin up, you've faced the situation, dealt with it and you'll come out the other side in due course. Well done.

fermi

Barclays will give their basic account to people who are currently undischarged bankrupts, so simply being on a DMP is no hurdle at all.

See: http://www.barclays.co.uk/Otheraccounts/Cashcardaccounts/CashCardAccount/P1242557963900

Tixy

You've done the right thing by using CCCS. Try not to feel deflated - you are tackling things and have an appointment to change your bank account.

How do you feel about moving home to clear your debts? Certainly something to consider I guess? Telling family can be a big help, because they'll then understand if you are cutting back on things, not spending so much on things like presents/holidays etc.

Good luck with the DMP.