DMP & Mutual Support Thread - Part 10

Mikedfw

Hi everyone!
After posting on here a couple of weeks ago and receiving some very kind and helpful advice I am now in the process of setting up my DMP, and although I'm very nervous about it I can't wait for it to get started and finally start to clear my debt!

I have currently in the process of switching my bank account from Natwest, who I have an overdraft and credit card with, to First Direct. The new account seems great and I have agreed to the switching service that they provide and everything seems to be moving along. However, I have received an email from Natwest today telling me how sorry they are that I am leaving (not surprising when you look at the amount of interest I have paid them over the years!!) and explaining what happens next in the process.
In the section on outstanding overdrafts it says that if the overdraft is not transferred to my new account, which it isn't as I have requested no overdraft, then the amount will need to be paid of in full within 10 days. Obviously this isn't an option for me so I was wondering if somebody could tell me what will happen after the 10 days has passed and the overdraft amount is still outstanding? The overdraft forms part of my total debt that is to be paid from my monthly payments to StepChange, but will Natwest accept this and allow it to be paid off monthly or will they start proceedings to recover the debt immediately?

The switching process to my new account has already started and is due to be completed on 17th June. Do I need to cancel the switch if it isn't too late and manually change all of my direct debits myself and keep the old account open?

Many thanks,
Mike

Almostthere78

Hi Mike
I'm pretty sure that a Natwest OD was part of my DMP originally. Give Stepchange a call and see what they say but at the end of the day if you haven't got it they can't take it!

Meatloaf1981

Ah. The problem here is you've SWITCHED the account rather than simply opened a new basic account elsewhere, then cancelled all your direct debits and standing orders from the old account manually. It is slightly trickier than switching, but you don't have to worry about the overdraft repayment thing. They will need to be written to an informed that you cannot pay the overdraft and intend to settle the outstanding amount at the rate of £x a month due to commencing a DMP. When you cancel an account, the overdraft becomes immediately repayable.

grant1wish

Age started DMP: 36
How long: 2.5 years
How long left: Approx 4 years


I don't know about anyone else, but I am finding it really hard right now. The first couple of years were quite good, balance going down well and everything going smoothly.


But right now it is hard. My car broke and I needed a new one, now my boiler has gone too.


SC have allowed me to reduce payments, which is great and has helped, but I am finding every month a real struggle..


Haven't had a holiday in 4 years now whereas all my friends/family are jetting off.


Plus I am still unsure about my credit rating. I use noddle and have varying different responses when looking at my file. IF it hasn't been defaulted by now, does this mean it never will? Or will they do it when the debt is completely paid off, meaning another 6 years. If this is the case, can I complain about this?

Karen777

Sazzie23 wrote: »

Try not to worry Karen, remember can't have what you haven't got etc etc.

Thank you - I say this to others but sometimes forget it for myself. Thank you.

racht

Mikedfw wrote: »

Hi everyone!
After posting on here a couple of weeks ago and receiving some very kind and helpful advice I am now in the process of setting up my DMP, and although I'm very nervous about it I can't wait for it to get started and finally start to clear my debt!

I have currently in the process of switching my bank account from Natwest, who I have an overdraft and credit card with, to First Direct. The new account seems great and I have agreed to the switching service that they provide and everything seems to be moving along. However, I have received an email from Natwest today telling me how sorry they are that I am leaving (not surprising when you look at the amount of interest I have paid them over the years!!) and explaining what happens next in the process.
In the section on outstanding overdrafts it says that if the overdraft is not transferred to my new account, which it isn't as I have requested no overdraft, then the amount will need to be paid of in full within 10 days. Obviously this isn't an option for me so I was wondering if somebody could tell me what will happen after the 10 days has passed and the overdraft amount is still outstanding? The overdraft forms part of my total debt that is to be paid from my monthly payments to StepChange, but will Natwest accept this and allow it to be paid off monthly or will they start proceedings to recover the debt immediately?

The switching process to my new account has already started and is due to be completed on 17th June. Do I need to cancel the switch if it isn't too late and manually change all of my direct debits myself and keep the old account open?

Many thanks,
Mike

When I changed my accounts I used the switching service. I wrote to Nationwide saying my overdraft would be included in my DMP and it was excepted- they actually defaulted me immediately
The only issue I had was whenever Stepchange sent my payment to Nationwide it was then passed straight into my new account!! Nationwide gave me a new account number to send payments for my overdraft to but for some reason Stepchange couldnt send any payments to it??? In the end it was easier for me to send the direct payment to Nationwide as soon as the Stepchange payment had been passed into my new account (hope this makes sense).

minkeymootoyou

Age you started DMP? 25
How long in years since you started DMP? 5 months
How long left approx- at current rate or in your plan? 1 year 11 months

apparently I caught my debt struggles quite early....

Ellieseleven

grant1wish wrote: »

Age started DMP: 36
How long: 2.5 years
How long left: Approx 4 years


I don't know about anyone else, but I am finding it really hard right now. The first couple of years were quite good, balance going down well and everything going smoothly.


But right now it is hard. My car broke and I needed a new one, now my boiler has gone too.


SC have allowed me to reduce payments, which is great and has helped, but I am finding every month a real struggle..


Haven't had a holiday in 4 years now whereas all my friends/family are jetting off.

Hi Grant1wish,

I think that you do have a period during the DMP where it feels like you are treading treacle and everything seems so hard and cars, boilers, white goods etc start to go wrong. I remember this happened to me and it just felt such a long way to go before I would ever be debt-free and everyone around me seemed to be going on holiday or enjoying a far better social life than me but...

Once I had got over the half way point, my enthusiasm for reaching the finish line kicked in again and I really do feel motivated again. The debt seems to be reducing at a quicker rate now and this is psychological but helps me keep going.

I'm still driving around in a 10 year old car and everything in my house has seen better days and holidays are few and far between but my debt free date is coming over the horizon so I just get my head down and keep going.

Hang on in there and you will turn a corner. You have done so well to get this far and the closer you get to your goal, the more determined you become.

Take care
Ellie x

Wont_be_beaten

Ellieseleven wrote: »

Hi Grant1wish,

I think that you do have a period during the DMP where it feels like you are treading treacle and everything seems so hard and cars, boilers, white goods etc start to go wrong. I remember this happened to me and it just felt such a long way to go before I would ever be debt-free and everyone around me seemed to be going on holiday or enjoying a far better social life than me but...

Once I had got over the half way point, my enthusiasm for reaching the finish line kicked in again and I really do feel motivated again. The debt seems to be reducing at a quicker rate now and this is psychological but helps me keep going.

I'm still driving around in a 10 year old car and everything in my house has seen better days and holidays are few and far between but my debt free date is coming over the horizon so I just get my head down and keep going.

Hang on in there and you will turn a corner. You have done so well to get this far and the closer you get to your goal, the more determined you become.

Take care
Ellie x

I so agree with you Ellie.

Grant1wish I recommend you concentrate on the amount you have paid off rather than the amount still to pay.

Sazzie23

minkeymootoyou wrote: »

Age you started DMP? 25
How long in years since you started DMP? 5 months
How long left approx- at current rate or in your plan? 1 year 11 months

apparently I caught my debt struggles quite early....

Not saying it's any easier when younger, all depends on circs but I think it might serve you well as you approach the cardigan, slippers and rocking chair era . Not too long to go, keep up the good work.

Karen777 wrote: »

Thank you - I say this to others but sometimes forget it for myself. Thank you.

Yup me too, say it together, 'we will be ok:o'

grant1wish wrote: »

Age started DMP: 36
How long: 2.5 years
How long left: Approx 4 years


I don't know about anyone else, but I am finding it really hard right now. The first couple of years were quite good, balance going down well and everything going smoothly.


But right now it is hard. My car broke and I needed a new one, now my boiler has gone too.


SC have allowed me to reduce payments, which is great and has helped, but I am finding every month a real struggle..


Haven't had a holiday in 4 years now whereas all my friends/family are jetting off.


Plus I am still unsure about my credit rating. I use noddle and have varying different responses when looking at my file. IF it hasn't been defaulted by now, does this mean it never will? Or will they do it when the debt is completely paid off, meaning another 6 years. If this is the case, can I complain about this?

It's the uphill wobble, nearly everyone gets it at some,point, as stuff wears out, and you start to notice not having a Holliday. Also I think others start to wonder if you a meanie rather than than just skint, after all 'what do you do with all your money?'


Ok so now we know what it is, what to do....like wont be beaten says, concentrate on what you've achieved, how much you've paid off, how many creditors if any you've paid off, the fact you've managed to get through 2 years without increasing your amount of credit. Do you spreadsheet? I find it helps, although I confess as I'm right down to token payments at the moment and a DMP date of +18 years I've not looked at the spreadsheet so much, I'm just concentrating on where I can find extra cash.

Creditors vary in policy, and by how much you repay as to wether they will default you. The great thing about having to go to token payments is that 3 of my interest charging creditors have, or say they will, default me now (28 months from start), and have stopped charging me interest, even BC and HBOS. Prior to this my payments were sitting just below and then above the minimum repayments. Interest was reduced on all 3 but now we should be at 0:T:T

It's not important to me especially as I feel like I'll never want credit again, but it could be to you, so write to them asking to cut interest and default and have it backdated to start of DMP. There are some templates a few pages back. Some creditors seem to think it's a bad thing to default, so tell them you want it. It's better than having credit rate ruined for 6 years after you've repaid.