DMP & Mutual Support Thread - Part 10

Bagley1980

Hi All,

Have had a good read through the last 2 threads. I am just starting out on the road to a DMP. I am in the process of setting up a new bank account and now have a customer/reference number with stepchange. I am also speaking to a stepchange adviser tonight.

Can I now start cancelling direct debits and writing to my creditors? With the interest freeze did people state 30 days while they were getting set up or did you just ask for them to be froze completely?

My debts grew as I tried to consolidate but then needed credit to live off, my wife has only recently found out and has been very understanding. She was more hurt from the fact I didn't tell her. Although still stressed about the situation I feel a lot more positive about the situation.

in_a_noodle

Thanks for all the advice so far everyone, it's very much appreciated. It's also encouraging to see so many others starting down this road at the same time, good luck to you all I'm afraid as a total newbie I cannot offer any real advice, but I'm sure the friendly folks here will be able to help :T

Quick update, I've now arranged for my wages to be paid to the new account and all direct debits have been transferred too. Knowing my wages are safe and that the mortgage, council tax etc. will be ok is a huge relief.

I signed and returned the Stepchange agreement yesterday in the post and also emailed a scan of my wage slip and my creditors account numbers so I hope to hear from them shortly?

I contacted MBNA via their online email service rather than post a letter as a payment is due on Thursday and I'm hoping this will reach the appropriate people quicker.

However, I've still got HSBC to write to. The loan and overdraft agreements have my local branch as the addressee but I have a feeling I shouldn't be sending my initial letters to them. Nothing is due to go out to them until the 26th, but I would like to let them know before then to hopefully activate a 30 day freeze so Stepchange can contact them. I'm thinking that sending three individual letters to head office may be the way to go.

Small steps but getting there The trouble is each step is increasing my worry about phone calls and letters and at times I'm literally shaking

in_a_noodle

Bagley1980 wrote: »

Can I now start cancelling direct debits and writing to my creditors? With the interest freeze did people state 30 days while they were getting set up or did you just ask for them to be froze completely?

Hi Bagley,

I've just started out the same as you, so my knowledge of DMPs is very limited and I'm sure others will be able to help you further. But here are my thoughts on your question.

If you have an overdraft I'd make sure that your wages are being paid into the new account before writing to them else they could grab your wages and cancel/reduce the overdraft.

With the interest I've asked for 30 days as I believe most give this as a matter of course. I've also asked if token payments will be ok for 3 months by which time I'm hoping to have DMP payments set up with Stepchange.

Good luck

Suseka

TTFM, GUO, S23, SS2 - thanks you guys (and anyone else I've missed), makes a whole lot of difference having a shoulder to cry on (even in the virtual sense).

I've taken a few days off work (well, in fact I was sent home today) to try and get my head together. Probably best as my sister's surgery is tomorrow and its going to be a lengthy procedure, so my attention will not be focussed on my job anyway. I will keep you posted.

Monkey1000 - It not only defaults that affect your credit file, there are other stages such as AP (arrangement to pay), DM (Debt Management) etc. All will have an effect, but defaults are ultimately the best because the 6 year countdown starts from that point. Don't fret too much about Halifax, SC will simply pay them the scheduled amount regardless. You'll need to get onto them yourself and push for interest reduction or a freeze though. They've been our worst creditor and are the only ones charging interest. BTW the interest charge will be deducted from your monthly payment, so yes, this will have the effect of prolonging your indebtness to them if not resolved.

Bagley1980 - well done for taking the first steps. Yes you can now cancel DDs and its worth letting creditors know that you'll be only sending token payments until the DMP is up and running. Once creditors know the situation they tend to apply a 30 day hold on the account. Don't rush to start the DMP too soon - it's worth giving yourself a couple of months grace and that way you can build up a bit of an emergency fund. Good luck with it all.

thebeaver

Puzzcat wrote: »

Well done on getting going thebeaver, don't forget that if they continue to add interest and charges there is a template floating around on here kindly posted by TTFTM that you can send, ensuring you use the word COMPLAINT and then if that fails to stop them, after 8 weeks you can complain to the FOS and hopefully be successful.
Good Luck
Puzz.

Thanks for this. I've since been assured that it will stop as of the 1st (we shall see). If not I'll take a look at your suggestions. Feeling better about it already! Even been working out my DFD given a few adjustments which helps put things into perspective massively.

Startingover14

I'm not that good at the techie stuff on here so haven't quite worked out how to quote in reply to things earlier in the thread.... :-(

I've not cancelled anything to do with my current bank at the moment - I only have an overdraft with them so leaving that until the very last thing I do. Am still awaiting paperwork for the new bank account. Am a bit impatient as wanted the wheels in motion much more quickly but I guess I just have to learn to wait.

Bagley1980

Thanks for the replies. I have now cancelled the direct debits and have the letters ready to go tomorrow for the token payments and ask for a 30 day freeze. My paperwork for my new account turned up today which has been signed and returned. I will be starting the DMP in 3 months to get some cash behind me (1st time in years!) I presume I will have to let step change know of my intentions of holding off for 3 months?

I did all my report online so haven't actually spoke to anyone yet. I got the application pack through my email with my client reference number etc.

Thanks again for the help

Startingover14

I'm just back from visiting a friend who I had decided would be the one person I would tell about all of this. It turns out she has been under an IVA and only got her completion about a month ago. We were talking about bank accounts and she suggested Think Money as that's what she has. The salary goes into a salaries account for all direct debits and then has a card account where they put all spare money. They give you a mastercard debit card for use on that account. Has anyone had any experience of it? Part of me likes the idea as they say that all bills are paid but it does mean I have limited access as I can't move any money from the salary to the card myself. It does cost £14.50 a month to manage. She is really happy with it and although could get a high street bank account she is staying with them so wondered if anyone had any thoughts or experiences?

in_a_noodle

Startingover14 wrote: »

I'm just back from visiting a friend who I had decided would be the one person I would tell about all of this. It turns out she has been under an IVA and only got her completion about a month ago. We were talking about bank accounts and she suggested Think Money as that's what she has. The salary goes into a salaries account for all direct debits and then has a card account where they put all spare money. They give you a mastercard debit card for use on that account. Has anyone had any experience of it? Part of me likes the idea as they say that all bills are paid but it does mean I have limited access as I can't move any money from the salary to the card myself. It does cost £14.50 a month to manage. She is really happy with it and although could get a high street bank account she is staying with them so wondered if anyone had any thoughts or experiences?

Could you achieve the same thing by opening another current account and setting up a standing order to transfer the non direct debit money into it (if your income is the same every month)? Same result without a £14.50 fee!

tayajade

in_a_noodle wrote: »

Could you achieve the same thing by opening another current account and setting up a standing order to transfer the non direct debit money into it (if your income is the same every month)? Same result without a £14.50 fee!

I would say that I agree with in a noodle, you would just have to work out what your bills amount to then once your standing order is set up you get the same peace of mind but free of charge, that extra 15 pounds per month could potentially shave a year off the Dmp or pay for a treat for you each month