Finally Took My Head Out Of The Sand......

Crazybunnylady

......It's been buried in there for a long time!!

Hi everyone, first post here so quick introduction before all of my questions!! I am married and a mom to 2 boys (and 5 rabbits!) I've known for a while my spending and debts were going a little crazy but I've tried to ignore it and just pay the minimum for all my bills. I had a day job which I absolutely hated and was making me physically and mentally sick....I took on a second job in May and if made me realise there is better work places to be so in August I left 'the hell hole' and took on another part time job so I know have 2 evening jobs and am looking for a dinner supervisor position or similar for during the day.
As I've gone from weekly to monthly pay it's kicked my bum into gear and I have been to Stepchange and am setting up a DMP......I'm feeling a range of feelings at the moment...scared, worried, concerned but also relieved.
My biggest worry is if I need to set up a new bank account and how to do it.
I'm going to gather all the information together for Stepchange but am worried about this months pay and bills. I have a loan and credit card with my current bank account so WILL I need to change accounts? If so what happens with that? It's all new to me and every basic account I've looked at says you can't have another account so I'm confused by that!!
Would it be a good idea to cancel all my non-priority direct debits now and just pay them token payment?

I'm trying to take everything a step at a time and look forward to the day I can treat my boys and bunnies (and husband) withot worry!!!

National_Debtline

Hi Crazybunnylady and welcome to the forum.

Crazybunnylady wrote: »

My biggest worry is if I need to set up a new bank account and how to do it.
I'm going to gather all the information together for Stepchange but am worried about this months pay and bills. I have a loan and credit card with my current bank account so WILL I need to change accounts? If so what happens with that? It's all new to me and every basic account I've looked at says you can't have another account so I'm confused by that!!

Yes, you absolutely do need to change your bank account. Otherwise, your current bank will remain free to grab the normal instalments for the loan and card, and Stepchange won't be able to do anything to prevent that.


You need to ensure that you are indeed looking specifically for a basic account - use this list for reference:


https://www.nationaldebtline.org/EW/factsheets/Pages/basicbankaccounts/openingabasicbankaccount.aspx

Crazybunnylady wrote: »

Would it be a good idea to cancel all my non-priority direct debits now and just pay them token payment?

Yes, that would be a very good idea indeed! In fact whether you pay them token amounts prior to the DMP beginning is not hugely important so if you can't afford anything at all right now, don't sweat it.


Dennis
@natdebtline

sourcrates

Hi,

Its always a good idea to open a new basic account, this takes away the possibility of your old bank helping themselves to any money in your old account, which, within limits, they can do.

Just go online and look for "basic accounts" Lloyds do a good one, all done online, mine was opened in 5 mins.

You should stop ALL unsecured payments to creditors, Stepchange will inform them of the DMP, but you can write and tell them yourself if you like, simply say that due to your circumstances you have entered a debt management plan with Stepchange debt charity, and you will be paid £xxxx amount on xxx date.

Then leave it at that.

Remember, ALL unsecured credit debts are classed as "non priority" and come last of the list to be paid, your creditors know this, you will be fine, don't worry.