Debt management plan - 2 current accounts

tnel15

Ok so today I set up a debt management plan with Step Change. They sent me a template of a letter to send to my creditors to tell them to cancel the continuous payment authority so they can't take any further money from my account.
What I've decided to do is open a new current account where I'll get my wages paid into and ill pay my bills out of that account also. I need to make token payments for the first month to each of my creditors but that's all the money they'll take. My bank account history is not good due to all these payday loans going in and gambling going in and out, may sound silly but I hope with a DMP, a new bank account, I can have a fresh start. I'll use the old account to put savings into maybe and cut up the card so I can't access it as easily.

I want to make this work this time.
What do you think?

National_Debtline

Hi

It sounds like you’re making some positive steps with sorting your finances out so well done.

I just wanted to mention that you shouldn't put any money into your old account if you have one of your debts with that company, such as an overdraft, credit card or loan, otherwise they may take money from the account to service their debt.


James
@natdebtline

kendall17

Further to what ND said, if you go into a bank that you dont have any debts with and ask for a basic bank account, you will be fine going forward. No overdraft on these accounts so nothing to worry about regarding your banking history.

Sazzie23

Hi Tnel

Glad you are getting in with the DMP, I have 2 current accounts, one where I put my bill money, and I don't touch it at all, and the other where I have shopping money. I also have a couple,of savings accounts for things like car tax and insurance savings.

I'm not a gambler but I can't be trusted with money as I spend it:o
So I try to keep my money as far as possible away from easy access.

Do make sure you don't have any money in accounts where you have DMP debts as they can take the money to offset the debt.

Did you know there is a thread devoted to DMPs. It's called the DMP mutual support thread, we are very friendly and non- judgemental, we do natter a lot so be prepared to get hooked. There are a lot of newbies on the thread so you'd be in great company, as well as some more long termers who like to pop up with advice here and there.