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melysion

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sourcrates

melysion wrote: »

So, it seems that I'm going to be disadvantaged from the start and not have an emergency fund for my DMP. My biggest creditor is Lloyds bank (its a loan). I also bank with them. My next payment is due to come out on the first of March and its way too late to stop my next months salary from going in. Thankfully I can pay it in March (its from April onwards that I am in trouble) but it means that I wont be able to take advantage of a buffer in case I need it as I'm concerned that they will just empty my bank account the moment they hear about the DMP. I dare not tell them about the DMP until everything is set up and my money safely tucked away elsewhere.

Has anyone else been in this situation? And can anyone tell me whats the quickest basic bank account to set up? I've applied for a co-operative bank current account (not a basic) but that was on the 19th Feb. They have accepted my application but i haven't got the paperwork to sign yet.

Always advisable to have a new account in place before you enter any form of debt management, from memory it takes around two weeks with coop to set up a new account.

Why don't you hold off on your DMP for a few months ?
Take some time to adjust, and build up an emergency fund first.

The world will not end if you don't pay for a while, you need to calm down a bit and think things through, as it's no use starting debt management if it's going to leave you worse off.

melysion

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January2015

We have loans with Hellifax and we did an online request for a payment holiday just as were setting up the DMP - so salaries went into the bank but loans didn't take any funds and we could start our emergency fund. When you log into Lloyds is there an option for a payment holiday on your loan account? If there is, and if it's like Hellifax, then you just press the request payment holiday button and it's instant. But you need to do it more than 48 hours in advance of the next due date of the loan payment.

melysion

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sourcrates

melysion wrote: »

The DMP has to be done this coming month as it's from April I don't have the funds to cover everything. So waiting is simply not an option. Waiting a couple of months to build an emergency fund won't work as the money won't be there and I'll start not paying for things without a DMP in place.

So I obviously need to scrap the co op bank idea, throw away any thoughts regarding an emergency fund, and go for a bank that sets things up much quicker. Any thoughts much appreciated.

You appear to be rushing into this, that is a recipe for disaster.
Why MUST the DMP start in April ?

Who is running the DMP for you ? Is it stepchange ?
If so, simply ring and tell them your not yet ready, and you will call them back in a few months, what is the rush here ? Please explain.

jools35

I'm in a similar position. After two weeks I've finally got our new bank account open and cards/pin etc. I'm too late to get my wages paid into the new account. I have a loan with my current bank due to come out at the beginning of March. I'm going to cancel the dd instruction using online banking and hope that all my other dds will go out as normal and that I can move the remaining money before the bank does anything with my account. I'll be sending the forms off to step change this week and they suggested we make the first payment to them in May. My current bank won't know about the dmp for a few weeks yet.

I think you should defer the dmp too. I don't think I could cope with setting it up before May. I need some space.

I can transfer money to my new bank using online banking, does anyone know if this is risky? Could my bank recall the transfer when they find out about the dmp?

melysion

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DanielleNic87

If you wanted to build an emergency fund I suggest you start your DMP a couple of months later and just send letters and £1 token payment to your creditors.

I made this mistake and wish I did the above as I now have no money to fall back on.

jools35

Can you not just make a token payment of £1 to each creditor for March and April and the start the dmp in May?

January2015

Just log into your current account and delete every DD - we did, even the ones for the loans to the bank the current account is with. Just move the salary sharpish - even if you have to walk in and withdraw the cash over the counter. Make token payments of £1 for the month of March and the DMP can start April, that way all of March's salary can go toward essential bills (mortgage etc) and the balance can be used for living expenses and emergency fund set up.

Edited: we even cancelled DDs for mortgage, insurances etc. etc. we left no DDs in place on the old current account. Pending new DDs being set up for essential bills I phoned and paid over the phone or got them to give me details to pay over the counter at the bank (if you can find a bank with a counter still in it!)

You could always transfer your salary online to a relatives account until your new account is set up