DMP - Overdraft question

Need_Help_Now

Hello everyone,

I will be starting my DMP shortly and my first payment will be made in mid-September once the paperwork is finalised.

I do have a question though. One of my debts is a £5,000 overdraft. As things stand that number is at £5,000. However, I contacted my work and told them I need my wages paid into a different basic bank account I have opened but they told me that they are unable to do this so my wages will be paid into the bank account with my £5,000 overdraft.

I am really concerned that when this happens my account will be locked preventing me from moving the money to the basic bank account in order to make my first DMP payment.

I haven't yet told my bank I will be entering the DMP yet as my paperwork hasn't been fully set up. What I was thinking of doing is moving my wages the day I am paid and then notifying my bank afterwards about my DMP but not sure if this is breaking any rules of any kind or if the bank has authority to demand I return the money back to the bank account? I have declared £5,000 on my DMP plan.

Apologies for the long post everyone and hopefully I have explained it well enough. As always any help or advice on this would be greatly appreciated.

Need_Help_Now

Willing2Learn

I think you need to be quite insistent with your employer. Stress that it is only acceptable for your salary to be paid into account xxxxxxx. You are giving them plenty of notice (3 weeks).

Need_Help_Now

Willing2Learn wrote: »

I think you need to be quite insistent with your employer. Stress that it is only acceptable for your salary to be paid into account xxxxxxx. You are giving them plenty of notice (3 weeks).

Hi Willing2Learn,

Thank you for your reply. I am sorry - I should have stated that my wages get paid into the overdraft account next Wednesday. I feel if I tell the bank before this happens they will hold on to the wages preventing me from having the money to pay my first DMP payment.

My employer said they are able to change the account to the basic one once I get paid next Wednesday.

I don't know if I transfer the wages on the Wednesday and then notify the bank about my DMP on the Thursday if they would take a dim view of this and demand I return the money or something else or if they would have powers to do this?

I have declared £5,000 as the value of the overdraft on my DMP plan and that is what I would leave it at if the salary is transferred to the basic bank account.

Thank you again for your post - I really appreciate it.

savetosave

Just don’t tell them until you are paid. Take out the money as soon as it goes in and move it to your new account.
What can they do?

Need_Help_Now

savetosave wrote: »

Just don’t tell them until you are paid. Take out the money as soon as it goes in and move it to your new account.
What can they do?

Thank you for your post savetosave. I really appreciate it. I am completely new to this whole process and think it is my only option. I can't miss my first DMP payment that is for sure.

Thanks again.

Willing2Learn

@Need_Help_Now

I hope you are starting to feel a bit of pride in the progress you have made over the last couple of weeks:

• You've had your Light Bulb Moment (LBM)
• You have a plan in place to address your debts
• You are addressing your mental health

All good things. All of them representing one baby-step toward being debt-free. That's three baby-steps in total = One leap forward

Need_Help_Now

Willing2Learn wrote: »

@Need_Help_Now

I hope you are starting to feel a bit of pride in the progress you have made over the last couple of weeks:

• You've had your Light Bulb Moment (LBM)
• You have a plan in place to address your debts
• You are addressing your mental health

All good things. All of them representing one baby-step toward being debt-free. That's three baby-steps in total = One leap forward

Hello Willing2Learn,

My apologies I am only posting now. Thank you again for your post - I really appreciate it and I will make an effort to post more regularly on here to keep you all update on my progress - even if my experience can help others.

Things are coming together very slowly but surely, thank you. I realise that it is only the beginning of the journey but I am looking forward to it in a strange kind of way. Once I come out of this I will certainly have a huge respect for money. You are certainly right about the baby steps - they are more achievable for me I think but I have come a very long way in the space of 1 week that is for sure.

I really appreciate your kind comments, I really mean that - and everyone else's comments. I don't think I would have made the progress I did without your kind words, your encouragement and help.

Thank you Willing2Learn and everyone else who has posted.

TriggerHappy

Hiya,

If the DMP is not finalised with docs sent to your creditors then yep, get that cash out ASAP!

What you should do though is also speak to your DMP provider so they're aware. It's good to keep them in the loop with everything I found.

On a side note, do you have a contingency fund in place? If not, then tell your DMP provider this and ask to do token payments for a few months while you get a pot saved up.

Good luck!