DMP & Mutual Support Thread - Part 9

Mossop01

Hi anewleaf, i waited 2 months for my first payment to SC in the meantime l made token payments where i could and saved the rest for energency fund. Always nerve racking but not as scary as it seems good luck

Mossop01

humphrd wrote: »

Gulp - I've returned my paperwork via email ready for Step Change to do the necessary on Tuesday and written the letters ready to send to my Creditors. Big scary journey starting - but hoping that having always been on time with payments they will agree to reduced payments and hopefully my luck will change soon !

Well done on taking the first step for us that was the hardest bit. Good luck

Suseka

Hi, newbie here - in the early stages of setting up a DMP with StepChange. Was pointed in the direction of this thread by TTFTM (thanks) and have subscribed.

Have been working my way through this thread (lots to read) trying to see if there are answers to the many, many questions racing through my mind, without the need for people to repeat advice already given.

But it is a lengthy thread - so forgive me for jumping to the end to ask this.

Both me and OH bank with Barclays and quite a lot of our debt, that will go into the DMP is with Barclays Finance. Even with that knowledge SC have advised us to set up a Barclays Basic Account. Now understanding as I do about the 'offset rule' - why would SC recommend a basic account with the same bank. Has anyone else done this (stayed with Barclays?) Surely they could attempt to 'offset' against the basic account as well.

Next question is - we are waiting on the paperwork from SC, expect it'll drop in the letterbox some time this week. They've advised they would set the DMP up for 1st May - which gives us just one month to get our salaries swopped to a new bank account, transfer DDs for mortgage and utilities etc and I'm not sure that's doable. Should I ask SC to move the start date to 1st June?

I've not yet defaulted on any payments, by OH has -and has contacted those creditors with SC reference. They've given him the 30 days grace period - but if we delay the start date, to give us time to sort things out, should we go back to them to offer a token payment?

As I said I've not defaulted, what should I do, still pay all my creditors in Apr (various dates), then write to advise I'm entering a DMP and cancel the DDs so I won't make a May payment (if that makes sense).

My heads in a bit of a spin today - so any advice will be gratefully received.

Time_to_face_the_music

Hi Suseka :hello:

Am really glad you found your way here

Have tried to answer your questions in the text of your original message to make it easier but please shout out if I missed anything.

Suseka wrote: »

Hi, newbie here - in the early stages of setting up a DMP with StepChange. Was pointed in the direction of this thread by TTFTM (thanks) and have subscribed.

Have been working my way through this thread (lots to read) trying to see if there are answers to the many, many questions racing through my mind, without the need for people to repeat advice already given.

But it is a lengthy thread - so forgive me for jumping to the end to ask this.

Both me and OH bank with Barclays and quite a lot of our debt, that will go into the DMP is with Barclays Finance. Even with that knowledge SC have advised us to set up a Barclays Basic Account. Now understanding as I do about the 'offset rule' - why would SC recommend a basic account with the same bank. Has anyone else done this (stayed with Barclays?) Surely they could attempt to 'offset' against the basic account as well.

This is incorrect information from SC and I have no idea why they told you this! If you have no debt with the Co-op, they do an excellent basic bank account. Others here have recommended NatWest and Nationwide. The number one rule to remember is never bank where you have any debt.

Next question is - we are waiting on the paperwork from SC, expect it'll drop in the letterbox some time this week. They've advised they would set the DMP up for 1st May - which gives us just one month to get our salaries swopped to a new bank account, transfer DDs for mortgage and utilities etc and I'm not sure that's doable. Should I ask SC to move the start date to 1st June?

It's a good idea to leave it a month or two before starting your DMP. If you make token payments for those months, it gives you a chance to add some money to an emergency fund. It's also a good chance to practice your new budget. I would go for 1st June but make sure you make a token payment to each creditor once in every 28 day period.

I've not yet defaulted on any payments, by OH has -and has contacted those creditors with SC reference. They've given him the 30 days grace period - but if we delay the start date, to give us time to sort things out, should we go back to them to offer a token payment?

Yes, see above

As I said I've not defaulted, what should I do, still pay all my creditors in Apr (various dates), then write to advise I'm entering a DMP and cancel the DDs so I won't make a May payment (if that makes sense).

Don't make the normal payments, cancel your DDs, write the letters and make a token payment instead

My heads in a bit of a spin today - so any advice will be gratefully received.

You sound like you are on the right track. It's a lot to take in and it can be a real emotional rollercoaster, so please check in here if you need any help, advice or support.

TTFTM x

Mossop01

Hi suseka, welcome, ttftm seems so have answered all questions, but just to add, we delayed our dmp for 2 months, making token payments only. SC and creditors were fine with this and it gave us chance to practice budget and put some aside to start emergency fund.

Since starting this journey the best piece of advice i could give it budget well, dont scrimp, this has to be do-able with no credit to fall back on and build up emergency fund!
Good luck x

Hopelessly_Hopeful

Suseka wrote: »

Hi, newbie here - in the early stages of setting up a DMP with StepChange. Was pointed in the direction of this thread by TTFTM (thanks) and have subscribed.

Have been working my way through this thread (lots to read) trying to see if there are answers to the many, many questions racing through my mind, without the need for people to repeat advice already given.

But it is a lengthy thread - so forgive me for jumping to the end to ask this.

Both me and OH bank with Barclays and quite a lot of our debt, that will go into the DMP is with Barclays Finance. Even with that knowledge SC have advised us to set up a Barclays Basic Account. Now understanding as I do about the 'offset rule' - why would SC recommend a basic account with the same bank. Has anyone else done this (stayed with Barclays?) Surely they could attempt to 'offset' against the basic account as well.

Next question is - we are waiting on the paperwork from SC, expect it'll drop in the letterbox some time this week. They've advised they would set the DMP up for 1st May - which gives us just one month to get our salaries swopped to a new bank account, transfer DDs for mortgage and utilities etc and I'm not sure that's doable. Should I ask SC to move the start date to 1st June?

I've not yet defaulted on any payments, by OH has -and has contacted those creditors with SC reference. They've given him the 30 days grace period - but if we delay the start date, to give us time to sort things out, should we go back to them to offer a token payment?

As I said I've not defaulted, what should I do, still pay all my creditors in Apr (various dates), then write to advise I'm entering a DMP and cancel the DDs so I won't make a May payment (if that makes sense).

My heads in a bit of a spin today - so any advice will be gratefully received.

Welcome.

I agree with everything the others have said.

Looking forward to getting to know you

HHx

Hopelessly_Hopeful

humphrd wrote: »

Gulp - I've returned my paperwork via email ready for Step Change to do the necessary on Tuesday and written the letters ready to send to my Creditors. Big scary journey starting - but hoping that having always been on time with payments they will agree to reduced payments and hopefully my luck will change soon !

Welcome and well done

As Mossop would say - onwards and upwards:T

HHx

Suseka

Thanks TTFTM, M01 and HH and I look forward to getting to know you as well.

After posting, seeing as I'm on my todd today, I decided to login to my bank and write down the amounts and payment dates of all my DDs - so I can work out which ones I have time to cancel and when to time the transfer of the DDs I will keep running (utilities etc).

Of course it depends if I can get my salary switched in time - I probably can, but OH probably cannot. I'll advise him to stop his loan payment and send that letter off first when we get the pack.

In sorting through my paperwork I realise that OH and me already have a joint account in another bank (Norwich and Peterborough), s'funny I never gave that a thought. That one we only use to pay the monthly DD for the secured loan.

So - do you think we can keep that going and use that, rather then set up a basic account elsewhere.

Also - looking through the CCCS thread, seems someone else (many moons ago) asked if having a basic with Barclays was okay, if they were one of your creditors in the DMP and they said yes. Interesting.

Anyway -I'd rather not, so if I can keep the N&P one going (that's if they are not affiliated in some way to any creditor we have), that'll work - or i'll look into opening the Co-Op Cashminder one folks have spoken highly of.

Thanks for you help.

gig11

SC advised us not to open basic bank account with Barclays because one of our creditors was Barclaycard so cant imagine why they would tell you it was ok. Good luck with your DMP its hard work but worth the effort

Growurown

Suseka wrote: »

Of course it depends if I can get my salary switched in time - I probably can, but OH probably cannot. I'll advise him to stop his loan payment and send that letter off first when we get the pack.

Got my salary switched OK when we started our DMP but OH's employer (useless admin dept.) didn't. I had already started cancelling all the DD's and was sure they would know what I was up to and swallow up all OH's wage but they didn't. I made a frantic dash to the bank and drew it all out in cash and paid it into the new account. I would suggest waiting until you are sure that OH's wages are going to the right account!