DMP mutual support thread part 13 !!

Willing2Learn

@Line In The Sand

Welcome to the forum

Do not use the CASS switching service as it may cause the overdraft to be switched to your new account!!! Instead, open up a Basic account with no link to any of your creditors (ie from a different banking group). I recommend Nationwide FlexBasic or Co-Op Cashminder accounts as they are both independent banks and have no overdraft facilities. And there is no need to write to your new bank with explanations.

Line_In_The_Sand

Thanks @willing2learn - so do we just switch all the direct debits etc. across manually then?

Willing2Learn

@Line In The Sand

I'm afraid so. Using the CASS can go wrong when you have the overdraft. It is much safer to transfer the Direct Debits and Standing Orders manually, the old fashioned way...
Edit: And don't forget to give your employer your new bank details

Line_In_The_Sand

Thank you :-) I presume it's best to get that done and everything transferred across before we actually return the DMP application forms. (It's taken a ridiculously long time to get to the point of realising we need to take action to fix this ... now I just want to hit the fast-forward button and have it all set up and running smoothly!)

Willing2Learn

@Line In The Sand

You haven't sent off the forms yet to StepChange (SC)? In that case, we recommend on this thread/forum, to everyone, that they delay the start date of their DMPs by between 3-6 months. (This is where we differ from SC guidance). By delaying the start date, it allows you to save up a sizeable Emergency Fund (EF). You can write to all your creditors asking them to place your accounts on hold whilst you are seeking advice. You can state in your holding letters that the DMP start date will be either xx September or xx December. That way, you are keeping them 'in the loop' and they will be satisfied with that. We recommend this because you probably won't have any lines of credit open to you once your DMP starts, which means an EF is their for emergency car repairs, boiler breakdown etc etc.

A template for a holding letter is linked below:
https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

Line_In_The_Sand

We actually have an emergency fund in place - I decided a few months ago that I would abandon our strategy of trying to overpay one of the debts any time I had 'spare' money to do so, and instead put that money into savings - was trying to get out of the cycle of paying down a card only to have to run it back up again. So we're already in a fairly decent position as far as that goes.

Editing to clarify: We've been through the StepChange budget planner, and had several calls with them to hash out all the details. We've now got the formal DMP application form here, ready to fill in and return when we're ready. Have been advised that if we get it back to them within the next two weeks, then their payments to our creditors will begin in August.

(I appreciate you responding - I'm slowly reading my way through the rest of this thread, but there's a LOT to go through!)

Broke_Bear

Hi there Line in the sand,

I am just starting this path too, I would advise delaying the return of your forms until your new account is set up and your wages have been paid directly from your workplace into the new account (making sure that the old account doesn't swallow them up if the changeover with your HR department doesn't go through in time).

Hope this makes sense/helps x

Broke_Bear

Well I made all 5 token payments this evening of a whole £1.00 to each creditor. I know my letters are starting to arrive as (despite stating in the letters I only wished to be contacted in writing) I received a text from B card to say they have placed my account on hold as discussed! I suppose the text kind of counts as 'in writing' so can't grumble too much but as to the 'as discussed' part, I haven't discussed anything with them I just advised that they would be paid £1 per month for the next 3 months, I take this as their acceptance anyway!

Line_In_The_Sand

Thanks @broke bear much appreciated.

I'm now sitting down with a spreadsheet and double-checking the order of stuff going out of the accounts and stuff going in, since dh gets paid by several different people on different timescales.

Even though I'm a bit scared of this whole process, I'm amazed at how much relief I'm feeling just from taking steps to fix this mess.

Suseka97

Line_In_The_Sand wrote: »

......'m now sitting down with a spreadsheet and double-checking the order of stuff going out of the accounts and stuff going in, since dh gets paid by several different people on different timescales.
Even though I'm a bit scared of this whole process, I'm amazed at how much relief I'm feeling just from taking steps to fix this mess.

That's a sensible approach and another reason to delay returning your paperwork to SC. I note you've mentioned that you already have an EF in place, that's great - but take a little time to put everything in motion. A couple of months will make no difference in the long run, but will allow you to set up your new bank account and make sure all your income streams have the new account details and payments are going there. Also, stop all non priority payments that you intend to put into your DMP now, that is anything not linked to your current bank (if you have more than an overdraft with them). You should write to your creditors letting them know your plans as suggested by W2 and most, if not all, will then put your account/s on hold for 30 days - that's then norm these days.