Offered DMP by stepchange

January2015

Tixy wrote: »

Its best not to write any letter to your own bank advising them of making token payments or talking to debt charities until you have been paid and chosen what to do with the money (withdraw it etc).

But for others then I would cancel any DDs now and write to them offering them a token payment whilst you seek advice.

Yes - totally agree with Tixy - and I should have said do not notify you own bank if they are one of your creditors, until the very last moment when you have ensured your salary payment is paid into any new/alternative bank account (with a bank you have no debts with).

Best of luck with the process. Don't panic - you are dealing with the problems and taking control rather than putting your head in the sand

Solve-it

Thank you - it really is a help talking to you all.
Right - Tomorrow I'll start the process.
Sort out application with Stepchange.
Set up other account properly.
List all DD's that need moving.
Wait till payday.
Move cash.
Move DD's
Stop debt DD's
Wait for the plan to kick in.
Does that sound about right?
I am very nervy about it all so wanna get it right.
:-)

sourcrates

Solve-it wrote: »

Just an quick ask... If I managed to clear the debt with my own bank first could I keep banking with them and just put the other debts into the mangement plan? Or.. do I have to sort all the debt in the one place - Im thinking relatives assistance possibly? Cant hurt to ask.

Depends if you have any other debts from the same bank, or associated companies.
They can use the right off set, which means they can take any money owed from any other accounts you hold with them, without asking you, telling you, or giving you any warning.

Solve-it

Sucessfully openned new basic account and details to be sent to me within 7 days.

What have other people done with the changing of direct debits and the overlap period when changing DDs?

DS4215

Solve-it wrote: »

Sucessfully openned new basic account and details to be sent to me within 7 days.

What have other people done with the changing of direct debits and the overlap period when changing DDs?

Don't move your DDs. Cancel them through the old account, and create new ones on your new account only for the essentials (gas/electric/water/c tax/etc). Then, set up standing orders for any debt repayments. It gives you more control and stops anyone from "accidentally" taking more money than they should - you would probably get it back, but could be left pennyless while it was sorted out.

Solve-it

Sorry - yes thats what I meant by moving.
Im going to sto the ones to my account and set up new ones with my other halfs (other) account with no credit ties.
Didnt realise haow many DDs we had - this may take a while.
Called SC again today and were very nice - just need to sort their contract, move my wage, call creditors and then get rolling.
Feeling a tad worried about creditors calling over the next few months.:eek:

andyfromotley

Solve-it wrote: »

Sorry - yes thats what I meant by moving.
Im going to sto the ones to my account and set up new ones with my other halfs (other) account with no credit ties.
Didnt realise haow many DDs we had - this may take a while.
Called SC again today and were very nice - just need to sort their contract, move my wage, call creditors and then get rolling.
Feeling a tad worried about creditors calling over the next few months.:eek:

i have read on here that usually when you give them a Stepchange reference number?? They tend not to hassle you. So that may not be too bad?

Sazzie23

Solve-it wrote: »

Sorry - yes thats what I meant by moving.
Im going to sto the ones to my account and set up new ones with my other halfs (other) account with no credit ties.
Didnt realise haow many DDs we had - this may take a while.
Called SC again today and were very nice - just need to sort their contract, move my wage, call creditors and then get rolling.
Feeling a tad worried about creditors calling over the next few months.:eek:

Been there done that, never missed a payment until crisis hit... So I do understand how you feel. At least the two of you are sticking together over this. Are you going into the DMP together? Sometimes couples just put one persons debts into the DMP, thereby preserving the other's credit rating a bit, and leaving access to further credit (for emergencies).
Obviously that's dependant on whose name the debts are in.

Once you've decided how to proceed, contact creditors and be straight, 'my wife has lost her job and we can't afford to pay, we will be making token payments this month (£1, but you don't have to say that), and we have contacted SC and this is our reference number. SC will be in touch to advise the payment plan.' All creditors should give you 30 days while you sort things out, so there's no rush. Cancel any DD for unsecured debts first with the bank, mainly you can do this online so you don't have to explain to anyone.

A lot of people make £1 payments for several months before getting the DMP set up properly. This also encourages creditors to freeze interest and default. It is a really scary time, but there is a DMP mutual support thread, you'll find loads of advice and ideas, pop in and say hi and we'll try to help you through it.

Solve-it

Thank you to everyone.
We will be glad to get this all moving now so waiting until payday to start to blitz it all up.
Its that horrid pending doom feeling until its all out and getting sorted but I feel its a really positive thing to do.
I think we will both have to enter the plan as some of the debt is joint and some in separate names. Mine more than my wifes but living without credit has got to be the way to go as that is what has lead to this in the first place.
I'll draft a letter now and have them ready for posting asap.

Karen777

don't worry too much about creditors calling. you don't have to speak to them if you don't feel up to it but most of us have found that they are quite reasonable once they know you are going with SC into a DMP or whatever. They just don't like not knowing what is going on. I didn't answer the phone for the first six months but then realised I should have just written to them all saying that i wanted all correspondence to be in writing! Also I got a folder and put every bit of mail sorted by creditor into it for records. Most of it is standard so don't worry too much. You will feel better once this all gets going honestly.