DMP & Mutual Support Thread - Part 9

Hopelessly_Hopeful

Equilibrium13 wrote: »

Thanks very much for that Growurown.

I have another question (sure it's not the last either!)

I'm starting a DMP with StepChange and bank with Barclays - am including my overdraft as well as 2 Barclaycards. SC advised that i could open a basic bank account with Barclays as they have an agreement with them that they won't use the right to offset. I thought this was ideal as it would save me changing banks and i have been with Barclays for 14 years and never really had any problems with them. I'm now wondering if this was a mistake

i've just sent off the application for the account and it can take up to 2 weeks to set up. Until this is done and everything transferred over, Barclays / Barclaycard can't be informed of my DMP. I get paid on Friday and will take out any cash left after paying rent, bills and DMP and as long as i have the new account details in time for the Nov payroll cut off my next salary payment should go into the new account. SC have assured me this will all be fine, but i'm so worried something will go wrong.

Is anyone here with SC and did the same account-wise?

Hi

I understand that BC have this particular arrangement but I wouldn't trust it unless I had something in writing. My advice is draw the money out on Friday. If they give you something in writing you can pay it back in. If not you will have the money to pay the bills and you can sort new account in time for next month.

Good luck

HHx

toomuch2

Hi All,

First time poster, and I am not sure this is the correct forum.

I have amassed some significant debts, which are becoming increasingly difficult to manage, this is made worse by a large tax bill due in January.

I lost my job at the beginning of the year and have been working freelance, which means I have no job security. I had a contract end a week ago, and my next role failed to happen. This means that my pay for the end of this month will be half the amount I had expected.

My debts are large enough that just paying them and my rent will mean I have no money to live on. I am really not sure what to do.


I have been following this forum for a couple of months getting the chops together to actually do something. The current situation has really brought the situation home for me.

My question is around who best to talk to for advice. Many people here seem to go to organisations such as Step Change, other go to the paid services (I think). Do any of the members here have any advice as to the best people to talk to?

Many Thanks

Sazzie23

toomuch2 wrote: »

Hi All,

First time poster, and I am not sure this is the correct forum.

I have amassed some significant debts, which are becoming increasingly difficult to manage, this is made worse by a large tax bill due in January.

I lost my job at the beginning of the year and have been working freelance, which means I have no job security. I had a contract end a week ago, and my next role failed to happen. This means that my pay for the end of this month will be half the amount I had expected.

My debts are large enough that just paying them and my rent will mean I have no money to live on. I am really not sure what to do.


I have been following this forum for a couple of months getting the chops together to actually do something. The current situation has really brought the situation home for me.

My question is around who best to talk to for advice. Many people here seem to go to organisations such as Step Change, other go to the paid services (I think). Do any of the members here have any advice as to the best people to talk to?

Many Thanks

Hi toomuch

Sorry to hear about your job issues, sounds like you are need of a friendly voice. Well done for facing the facts and making a start, its not easy and you have done a great thing by posting here. I'm with stepchange and have been happy with them, another free service I think is debtline. I don't think anyone here particularly recommends the paid services as you end up paying more in the long term.

Probably the best place to start is an SOA (statement of affairs) which will help you figure out where changes can be made - and as I've said before, I thought I was frugral til I came on these threads and discovered where frugal really lives:rotfl:
Starting point for reading

https://forums.moneysavingexpert.com/discussion/4228011

then

https://forums.moneysavingexpert.com/discussion/562271

and use the links to sit with coffee and complete your SOA

Come back here if you get stuck/have questions

Sazzie23

Hi Equilibrium

I wouldn't trust any bank now - but I had debts with Nat West and left some money in the account until the DMP started - & I did get warning they were going to off-set it, which I was OK with (£11 so I used that as their token payment). If you are going to need the money to pay essential bills, take it out or change banks asap.

Keep up the good work, making real progress.

toomuch2

Hi Sazzie

Thank you for your kind words and advice. I will go and do the SOA.

Best

Mojo13

Hi Everyone,

Still all seems to be going forward on the DMP, I have a new account but I do have some cards that should be paid soon, which will now fail as I have stopped the Direct Debits, do I make a token payment to them until they have accepted (hopefully) the StepChange plan, or just wait now for Step Change to get back to me.

Well done to all the successes on here gives me a real boost to know it is possible as long as you face up to things.

Mo

*Foolish*

Mojo13 wrote: »

Hi Everyone,

Still all seems to be going forward on the DMP, I have a new account but I do have some cards that should be paid soon, which will now fail as I have stopped the Direct Debits, do I make a token payment to them until they have accepted (hopefully) the StepChange plan, or just wait now for Step Change to get back to me.

Well done to all the successes on here gives me a real boost to know it is possible as long as you face up to things.

Mo

There is no harm in sending a token payment, £1 will do, to show that you are still willing to pay the debt whilst your DMP is being arranged, just add a covering letter with your SC reference.

Ellieseleven

bertman wrote: »

Thanks HH,

In about 3 days our balance will be in the £50's..... Can't believe how its going down now. Still pretty high. But what is an enormous amount to some people isn't to others. I went past a BMW garage the other day and a car in the showroom was on sale higher than our debt - kind of brings things into perspective though!!

Well done Bertman! It's a great feeling when you dip under into the next X thousands - it pushes you on that bit more

Ellie xx

Growurown

toomuch2 wrote: »

My question is around who best to talk to for advice. Many people here seem to go to organisations such as Step Change, other go to the paid services (I think). Do any of the members here have any advice as to the best people to talk to?

Many Thanks

I'm with Step Change and have been very pleased with the service they have provided and it is free. Don't go to a fee paying service. They will promise you the earth but in reality they won't be able to do a better job for you than the free providers.

CaptainAmerica

Equilibrium13 wrote: »

Thanks very much for that Growurown.

I have another question (sure it's not the last either!)

I'm starting a DMP with StepChange and bank with Barclays - am including my overdraft as well as 2 Barclaycards. SC advised that i could open a basic bank account with Barclays as they have an agreement with them that they won't use the right to offset. I thought this was ideal as it would save me changing banks and i have been with Barclays for 14 years and never really had any problems with them. I'm now wondering if this was a mistake

i've just sent off the application for the account and it can take up to 2 weeks to set up. Until this is done and everything transferred over, Barclays / Barclaycard can't be informed of my DMP. I get paid on Friday and will take out any cash left after paying rent, bills and DMP and as long as i have the new account details in time for the Nov payroll cut off my next salary payment should go into the new account. SC have assured me this will all be fine, but i'm so worried something will go wrong.

Is anyone here with SC and did the same account-wise?

Hi,

I have a DMP with Payplan who also advised me of the same as I banked with Barclays and also have a CC debt with Barclaycard. I opened a basic cash card account with Barclays and they have not offset the funds in that account with the outstanding debts I have with them.

There is always a chance that they will offset but in my particular case it hasn't happened