DMP & Mutual Support Thread - Part 11

sourcrates

lucy_w86 wrote: »

Also, one of my debts, a CC is with the same bank that I bank with. Is this a problem?
Thanks

It could be.

To be safe, you should open a new basic bank account, with a bank you have no debt with.

There is a law called the "law of set off", this basically means if you owe a bank money on one account, they can take it from another account held with them, in your name.

There are rules in relation to this, but it could cause you additional hassle and stress, so best to avoid if possible.

lucy_w86

Thanks all for the above. Will action this soon. I have a basic Halifax account so will need to move all my payments into and out of that - blah! I hate doing that, it was a pain last time! I am planning on starting my DMP in April giving me time to build an emergency fund. Does this sound OK?

January2015

lucy_w86 wrote: »

Thanks all for the above. Will action this soon. I have a basic Halifax account so will need to move all my payments into and out of that - blah! I hate doing that, it was a pain last time! I am planning on starting my DMP in April giving me time to build an emergency fund. Does this sound OK?

Sounds fine. April will be here before you know it and you may not build much of an emergency fund.

To give you an idea, I had my LBM on 7th January last year and started my DMP payments on 1st March. I thought I had a reasonable emergency fund, but having been an idiot and made January payments in full (before LBM ) I only had 2 months to save an emergency fund. In the last year car problems alone have more than polished off my emergency fund.

Take as long as you need to build a reasonable fund. If that means delaying start of DMP a couple more months, so be it. If I could go back in time I wouldn't have started DMP until June or July. This would have seen accounts default quicker but also I didn't realise predators have to work with me, will not take legal action themselves, will firstly sell debt on to a collection agency. This takes a fair few months. I, incorrectly, thought as soon as payments drop below required level the wrath of predators would descend on me and I needed to get DMP sorted and started as soon as possible.

I've learnt a lot in the last year;)

lucy_w86

January2015 wrote: »

Sounds fine. April will be here before you know it and you may not build much of an emergency fund.

To give you an idea, I had my LBM on 7th January last year and started my DMP payments on 1st March. I thought I had a reasonable emergency fund, but having been an idiot and made January payments in full (before LBM ) I only had 2 months to save an emergency fund. In the last year car problems alone have more than polished off my emergency fund.

Take as long as you need to build a reasonable fund. If that means delaying start of DMP a couple more months, so be it. If I could go back in time I wouldn't have started DMP until June or July. This would have seen accounts default quicker but also I didn't realise predators have to work with me, will not take legal action themselves, will firstly sell debt on to a collection agency. This takes a fair few months. I, incorrectly, thought as soon as payments drop below required level the wrath of predators would descend on me and I needed to get DMP sorted and started as soon as possible.

I've learnt a lot in the last year;)

Thanks

What's LBM?!

I think I am just scared of what's going to happen between now and when my DMP starts. How creditors will react etc... First things first, get my pin to my Halifax card, then get payments moved into that account. From experience before, it can be a bit of a pain so need to factor this in!

sourcrates

lucy_w86 wrote: »

Thanks

What's LBM?!

I think I am just scared of what's going to happen between now and when my DMP starts. How creditors will react etc... First things first, get my pin to my Halifax card, then get payments moved into that account. From experience before, it can be a bit of a pain so need to factor this in!

Lightbulb moment - the point in time you realise things have to change.
Nothing will happen, nothing at all !!

lucy_w86

sourcrates wrote: »

Lightbulb moment - the point in time you realise things have to change.
Nothing will happen, nothing at all !!

Ok... So mission for this weekend, get a new Halifax pin. List my income avenues and contact them to get bank changed.... Get a solid list of creditors, their details, balances and contact info and draft letters. Silly question, even though I am planning to start my DMP in April, maybe later, should I still send letters now saying I am working with SC? How long do they expect the process with SC to last as if I keep using the same excuse for a few months, does it not annoy them?!

sourcrates

lucy_w86 wrote: »

Ok... So mission for this weekend, get a new Halifax pin. List my income avenues and contact them to get bank changed.... Get a solid list of creditors, their details, balances and contact info and draft letters. Silly question, even though I am planning to start my DMP in April, maybe later, should I still send letters now saying I am working with SC? How long do they expect the process with SC to last as if I keep using the same excuse for a few months, does it not annoy them?!

To your creditors, you are just an account number, thousands of people get into financial difficulty, that's why every lender has there own collections dept to deal with them.

It's purely Buisness, all you need do is tell them your seeking advice from stepchange, dosent matter how long you take to start your DMP, the collection process can take many months, even years, nothing happens very quickly with normal consumer debts, as there are so many of them.

There will be letters, there will be phone calls, you can ignore until your ready to start paying, having a phone you can block numbers on is handy.

Concentrate on that emergency fund first, that's were lots of people fall down, they rush into things thinking the world will end if they don't pay, it won't, trust me !!!

lucy_w86

sourcrates wrote: »

To your creditors, you are just an account number, thousands of people get into financial difficulty, that's why every lender has there own collections dept to deal with them.

It's purely Buisness, all you need do is tell them your seeking advice from stepchange, dosent matter how long you take to start your DMP, the collection process can take many months, even years, nothing happens very quickly with normal consumer debts, as there are so many of them.

There will be letters, there will be phone calls, you can ignore until your ready to start paying, having a phone you can block numbers on is handy.

Concentrate on that emergency fund first, that's were lots of people fall down, they rush into things thinking the world will end if they don't pay, it won't, trust me !!!

Thank you so much! I'm sure I will be back soon when the letters and calls start coming. Just for re-assurance. Until then I shall be following this thread closely. Night all.

Sazzie23

Mostly I think creditors want to know you are not going to run away. Keep in touch with them and they seem ok.

Never forget, be proud to be dealing with your debts.

dad2one

Indeed, you're facing it, you're dealing with it, and importantly to them, you're paying them back. And doing so at a rate you can afford is a huge relief and for many the start of a new life.