DMP & Mutual Support Thread - Part 10

SquirrelNuts

Hi ploppy57,

Welcome to the DMP thread!

Regarding the bank account, the main factor to consider is to open the account where you dont have any debts owed.

This is because banks can (and will) take money from your current account to allocate to any associated debts if they have the opportunity.

Note some brands have the same owner (e.g. Halifax and Lloyds) so be careful when choosing!

Some people open a basic bank account, others like myself go for a normal account without overdraft. I actually opened two accounts with Santander, one is my spending account and the other is the bills account where all of the DD's come out of.

There's quite a good section on the main MSE site under banking and saving so take a look around and go for whichever account works for you!

cheers
Squiz

System

SquirrelNuts wrote: »

Hi ploppy57,

Welcome to the DMP thread!

Regarding the bank account, the main factor to consider is to open the account where you dont have any debts owed.

This is because banks can (and will) take money from your current account to allocate to any associated debts if they have the opportunity.

Note some brands have the same owner (e.g. Halifax and Lloyds) so be careful when choosing!

Some people open a basic bank account, others like myself go for a normal account without overdraft. I actually opened two accounts with Santander, one is my spending account and the other is the bills account where all of the DD's come out of.

There's quite a good section on the main MSE site under banking and saving so take a look around and go for whichever account works for you!

cheers
Squiz

Yeah we are hoping to open more than one account. Just actually online at the moment trying to apply for First Direct....it asks if we have any other accounts and how many credit cards etc.....wasn't expecting that. Should I say yes we have other accounts, even though we are going to be closing them and should I put the number of cards we have, even though they are about to be shreaded???

System

Really confused now with this bank account opening. SO I say we do have other bank account, even though it has an over draft and is part of the DMP? DO I say how many credit cards we have, even though they are going to be shreded??? Not sure what to do.
If I say yes to other bank account and say how many credit cards we have, will First Direct still let us open account?

spot3

Well I suppose at this point you do, so being honest you would have to declare them.

Nationwide gave me an account in the same situation, I must have told them about the accounts and cards

System

:(Oh no....fell at the first hurdle.....First Direct have turned us down for a basic current account!!! Says they will email to let us know why...

Bettingmad

Did you have any debts with HSBC as they own First Direct?
Open a Coop Cashminder account and don't let the rejection get to you

Puzzcat

ploppy57 wrote: »

:(Oh no....fell at the first hurdle.....First Direct have turned us down for a basic current account!!! Says they will email to let us know why...

Hi Ploppy,


Glad you found us..!!


Not sure if you already have late/missed payments/defaults etc.. If you do then you definately need to look at just opening a basic bank account.. and as previously said with a creditor you have no connections with... Most banks do them I believe but Barclays and CO-op appear popular on here. If your credit file is still all okay then you should be able to open a less basic account but remember we are not suppose to have overdraft facilities...


I opened mine with Nationwide pre starting my dmp as I already had my mortgage with them and they have excellent online banking.


Just remember this is the toughest part.. the start up.. the letters/phonecalls.. and the debt will generally rise until the dmp is in place.. Are you doing token payments for a few months to build up an emergencey fund?


Puzz. x

System

Bettingmad wrote: »

Did you have any debts with HSBC as they own First Direct?
Open a Coop Cashminder account and don't let the rejection get to you

No, no debts with them, ours are all with Lloyds, Halifax, Barclaycard and MBNA.

System

Puzzcat wrote: »

Hi Ploppy,


Glad you found us..!!


Not sure if you already have late/missed payments/defaults etc.. If you do then you definately need to look at just opening a basic bank account.. and as previously said with a creditor you have no connections with... Most banks do them I believe but Barclays and CO-op appear popular on here. If your credit file is still all okay then you should be able to open a less basic account but remember we are not suppose to have overdraft facilities...


I opened mine with Nationwide pre starting my dmp as I already had my mortgage with them and they have excellent online banking.


Just remember this is the toughest part.. the start up.. the letters/phonecalls.. and the debt will generally rise until the dmp is in place.. Are you doing token payments for a few months to build up an emergencey fund?


Puzz. x

Yeah Nationwide have accepted us for a basic cash card joint account. Says takes 5 days for paperwork to arrive and then another 10 days before it will be set up....wasn't expecting it to all take that long. Was hoping to have everything sorted by the end of the month to start DMP on 10th Feb, but doesn't look like that is going to happen in time....I suppose I am just being silly and wanting everything sort ASAP, like you say, the debt will build up, which probably means it will actually take us longer than the 6 years 7 months to clear it.

Bettingmad

ploppy57 wrote: »

No, no debts with them, ours are all with Lloyds, Halifax, Barclaycard and MBNA.

You will be safe with a Coop Cashminder then.