Barclays and stepchange

Florida15

Hi currently starting a dmp, have debts with barclays and barclaycard. Have been advised both by stepchange and barclays that i can open a Basic account with them and they will not take money from new account to pay debts from the old one.

Has anyone got experience with this. Stepchange even sent us the forms for the basic account to fill in.

We have been to the bank to do this but no account has been created yet, apparently an IT fault with application.

We do have a coventry offset account but this has no debit facility only a cash card, should we just pay our wages into here and set up direct debits from them.

Sorry for so many questions but very worried and cant sleep with everything going round in my head.

Thanks in advance for any advice

Pickle29

Hello
You are in the right place and doing the right thing with step change. We have just started a DMP, first payment gone to creditors this week, so we are very new, very scared but wading through the treacle. Anyway, we did exactly the same as you. We have Barclaycard and a current account with Barclays with a large overdraft. Stepchange advised us to open a basic account with Barclays which we did - It took 4 weeks to get it sorted though as basic accounts are dealt with by head office in Coventry (I think) not your local branch.

I told my sister everything and had our wages paid into her account until the new acc was set up so we had some control over paying priority payments (unlike with the overdraft, we had no control). Once I got the new cards, I moved my wages into the new acc and set up all new dd myself ( lots of hardworking in the interim) but now have a new account with no OD and a book where I write everything down and now in control.

I asked lots of questions and people on this forum are great and stepchange are brilliant. Stick with it, you will get there and it will get better it just takes time, good luck x

Helpmeoutofthismess

Hi, if you are worried about barclays offsetting have you thought about the co op cashminder account? http://www.co-operativebank.co.uk/currentaccounts/cashminder

You can apply over the phone so it doesn't matter if you do not have a branch nearby, you can operate the account online and through the post office. The account comes with a debit card and you can set up direct debits/ standing orders ect but no overdraft.

H x

Florida15

Thank you so much for replying. Think i will have to get mine and my husband wages into coventry account for time being then transfer when barclays is set up as we have direct debits to sort out including mortgage and dont want to mess that up.

Very stressed at the moment, not heard from stepchange yet or any creditors but im sure we will.

Feel very embarrassed and ashamed but feels good to hopefully be getting something sorted as at the end of the month we have nothing left.

Wondering if we get our interest frozen or payment accepted by creditors, barclays, barclaycard and MBNA.

Good luck to you.

Florida15

Thanks for this advice, i will take a look.

Florida15

If i set up direct debits from coventry offset account, would they oppose a direct debit to stepchange?

Many thanks

Pickle29

From my limited experience, stepchange said the bank and creditors will be pleased they are getting something. I set up a direct debit to stepchange from my new basic account.

I still don't know about interest etc but I've made arrangements to pay step change and they are liaising with creditors which is a weight of my mind.

It is a worrying time and there is a lot to do. I feel ashamed, embarrassed, scared, I feel as though I have let my family down, I'm very tearful.... BUT..... I am doing something about it and like you we will get there with stepchange and this forums help. Look forward not back x keep in touch

Monkeyballs

Hi,

So I was in the same boat and I now have a new Barclay's account and my overdraft and Barclaycard is being paid out of my DMP payments - no issues or stress at all!

The only thing I would add is that Barclaycard refuse to freeze interest but it is reduced to something like 0.98% or something...

MB

seanavfc92

It is generally advised that if you bank with the creditor you owe money to, they have a right of offset where they can freeze your account and take payment from it. The reason Step Change advise to set up a BBA is to prevent the bank from taking payment from your account.

runforlife

I opened an account with Nationwide and their flexdirect. Seems to be working ok so far and only just into the DMP.

eyeopener2

I went with nationwide and they were fine, no issues at all. Barclaycard are intransigent pigs though, so do not expect them to play ball with you.

Your interest rate will be cut, but when or if your payments rise so will the interest rate. I went from zero, to 1% to 6% to 12% in the space of A year so just watch them.