DMP & Mutual Support Thread - Part 10

chutyeh

Thanks Puzzcat - sounds sensible so will do.

Hutch11

Hi can I have some advice please. Just starting a DMP with stepchange and a few days ago they contacted our creditors and our first payment is November. We've set up new bank accounts so are in the process of changing over but in the meantime my other halfs bank has withdrawn her overdraft without notice leaving her £900 overdrawn so her wages which go in tomorrow will be swallowed up. Stepchange said the banks would give us 38 days after they spoke to them but they haven't. We don't know what to do as we now can't afford to pay stepchange or buy groceries and have a newborn to feed. Any advice please?

Growurown

Hutch11 wrote: »

Hi can I have some advice please. Just starting a DMP with stepchange and a few days ago they contacted our creditors and our first payment is November. We've set up new bank accounts so are in the process of changing over but in the meantime my other halfs bank has withdrawn her overdraft without notice leaving her £900 overdrawn so her wages which go in tomorrow will be swallowed up. Stepchange said the banks would give us 38 days after they spoke to them but they haven't. We don't know what to do as we now can't afford to pay stepchange or buy groceries and have a newborn to feed. Any advice please?

I know similar things have happened to others and they have managed to get the money back by talking to the bank and getting them to reimburse the funds. They can't put you in a position of hardship, not with a baby, just think of the bad press for a start. How much overdraft can you have or have they blocked it completely? The only other suggestion is to draw as much cash out as you can and then put the overdraft into the DMP. You could also speak to step change and see if there is any advice they can give you, or they may be able to put pressure on the bank for you.

Sazzie23

Hutch11 wrote: »

Hi can I have some advice please. Just starting a DMP with stepchange and a few days ago they contacted our creditors and our first payment is November. We've set up new bank accounts so are in the process of changing over but in the meantime my other halfs bank has withdrawn her overdraft without notice leaving her £900 overdrawn so her wages which go in tomorrow will be swallowed up. Stepchange said the banks would give us 38 days after they spoke to them but they haven't. We don't know what to do as we now can't afford to pay stepchange or buy groceries and have a newborn to feed. Any advice please?

Ok Hutch don't panic -as GUO says bad situation but not impossible.
First thing am, call SC ask them to delay DD, and that you want to start your DMP next month instead- should be time to stop that payment which will free up a bit of cash.
Tell SC what happened see what they say, then call the bank, tell them what they did and why it was wrong and you are going to complain to FOS.
If you have other DD due to go out, cancel now - all of them - and withdraw any fund that you can straight away. You can make repayments to utilities etc with cash withdrawn. Any unsecured creditors due to go on DMP can wait until you've sorted it.

Call your rental/mortgage tell them you have a banking problem - don't elaborate, but you will pay them asap and when you've done all that sit down again and review where you are and how much more you need to survive next month.

Then come back here and someone will have a magic answer or some advice on what to do next at the least. If you are still awake, get down to the bank and withdraw your funds in cash if you can from the machine.

And - don't panic - its a problem - its solveable. Chin up.

Sazzie23

chutyeh wrote: »

Afternoon all.

Just looking for a little advice. My DMP was set up for 1st November (£350) but the proverbial hit the fan this month, so I've had to move the start date to December.

I'm going to make token payments of £5 for each creditor (£55 in total) for November. Do I have to make it clear to each creditor these are token pamyents, or does it not matter what they are - just that they have received something for November? For some creditors the £5 is a fraction of what they would have expected under the DMP.

Cheers

Hi Chut,

I agree with Puzz, £1 is fine and a letter/email saying why will help the message get through and make them more likely to freeze interest etc. Welcome aboard, you are in good company here:D

Sazzie23

Pink_Giraffe wrote: »

Thank you all so much for the welcomes and the advice so far. Lastday it seems that we are in similar situations in a lot of ways, except I'm a step behind as I haven't been able to confess to my family and partner what a mess I'm in - I feel the same, so ashamed. The best/worst part is that I'm training as an accountant, but I can't even manage my own finances!
You're doing awesome, I wish I was as brave as you!

Painters don't paint their own houses, doctors don't eat well, accountants don't get to grip with their finances, its just life - no need to beat yourself up.

Not everyone shares their situation with someone, but I think most people that do on this thread say they feel better for it, so maybe mum, dad, sister or friend perhaps? You don't always have to give the full extent, just an idea that something is wrong.

Posting on the thread is brave too, alot read it and never post.

Anyway we are here for those ' need to tell someone' moments too :eek:

Kate_fixing_it

Sazzie23 wrote: »

Painters don't paint their own houses, doctors don't eat well, accountants don't get to grip with their finances, its just life - no need to beat yourself up.

Not everyone shares their situation with someone, but I think most people that do on this thread say they feel better for it, so maybe mum, dad, sister or friend perhaps? You don't always have to give the full extent, just an idea that something is wrong.

Posting on the thread is brave too, alot read it and never post.

Anyway we are here for those ' need to tell someone' moments too :eek:

Sazzie is absolutely right. I'm training to be an accountant too and here I am 6k paid off and still 10k to go. I have worked in corporate finance for over 4 years and I've been in debt for 18 years The world of work is very different to personal finance. I know of colleagues with 6 figure salaries, five figure expense accounts that can't manage. And to reinforce this point I once had a morbidly obese doctor (picture a man filling a 2 seater sofa on his own) tell me I desperately needed to lose weight 6 weeks after I had a baby when I was only a stone over weight!

On another positive note I'm off on "holiday" today! Yes, I have £10,000 of debt that I'm repaying and today I'm going to jump in my car, drive for 4 hours to north Devon and not come home until Sunday.

This is perfectly feasible within my budget. I'm staying with a friend (mostly excited about seeing her) it'll cost me around £60 in fuel and I have breakdown cover just in case. I'm taking a couple of bottles of wine for tonight and tomorrow we're going to her local wetherspoons for dinner and drinks - I already have my cash budget in my purse. The children are staying at home with DH and I get to be a selfish grown up for a couple of days. This has been carefully planned and saved for (a few cutbacks last month and this month) and I'm going to thoroughly enjoy the break before I really get down to the business of exams and Christmas.

I'm sure at least one of the newer posters will be thinking "it'll be years until I can do that" but I've only been DMP-ing since May and this is my first DMP holiday. Okay, so it's not two weeks on a beach in Greece (actually I've never been to Greece) but it means just as much to me. And it's not funded by credit. I can truly relax, enjoy the change of scenery, take in the bracing sea air and revel in the company of my friend who I haven't seen since June.

This wouldn't be happening without my DMP. I'd still be robbing Peter to pay Paul, hiding the post, ignoring the phone and grasping at ever dwindling credit options to cover the rapidly advancing Christmas (63 days anyone?) then fearing how I was going to pay it all back.

I couldn't have imagined I'd be doing this a year ago but here I am - not running away but taking a break for ME.

Kate x

Puzzcat

Have a lovely weekend Kate. X

Karen777

Kate - what a fab story - well earned break - enjoy!!!

BeingDebtFreeStartsHere

Enjoy Kate!! Totally deserved - and time just for you sounds perfect