DMP mutual support thread part 13 !!

Suseka97

flee wrote: »

............
Now it is and we are handling the monkey side of life together.....

I know its a typo... but did make me chuckle....

flee wrote: »

We have to pay council tax, electric and various other bills ASAP and they need to be our priority. Do I contact PP now or wait until January and should we contact our CC people now and let them know our plan of action or again wait til January.
Thanks for any advice

Yes, you must prioritise these ones - especially if you are in arrears and if so then my advice would be to stop making any payments immediately (or as soon as) to those non-priority debts (Loans, CCs etc.).Note the comment about debts associated with your current bank (if any) below first.

It's a good idea to build up an emergency fund, so a start date of January should hopefully give you that breathing space. But you should write to all your creditors now to explain the situation. Most, if not all, will put your accounts on hold for 30 days anyway - but its advisable to put them on hold by saying you are in financial difficulty and will be working wiht PP on a debt solution and that you'll be in touch with them in due course.

Are any of your debts linked to your current bank account? Do you have an overdraft with them?

If yes, then don't alert them to your financial predicament just yet and get yourself a 'clean' bank account that has no financial links with them, or any of your other creditors first.

jupitercrash

Hi all,

I have just downloaded a DMP application from StepChange. Debts so far are £14k+ a mixture of a personal loan and credit cards. Feeling very silly for getting myself into this mess, but feeling relieved to finally be taking control. I have an anxiety disorder, with anything finance-related being a massive trigger. I once had a stash of over 2 years' worth of bank statements, because the idea of opening them sent me into meltdown.

Currently I'm paying out more on debt repayments than I am on actual bills, missing payments on council tax and credit cards due to payments bouncing and maxed out my OD. Plus, am approaching 30 next year & husband & I are desperate to have children, but currently don't see how I can go on maternity with £800 of debt every month needing to be paid.
Anyway, sat & filled out all the forms with StepChange & they said I could be debt free in less than 3 years. Bloody brilliant if so!

But enough of my rambling! I have a question... my current bank account has a £1.5k OD which is maxed out every month, but is my main account - salary goes in & all DDs etc come out. Obviously I've listed the OD as a debt in my DMP, so it probably makes sense to stop using it while I clear the OD through my DMP. So, do I just open another basic account for salary & DDs? Can I use a switching service or do I need to do it all myself? Can I use the same bank as my current account (Natwest) or should I go elsewhere?

sourcrates

jupitercrash wrote: »

I have a question... my current bank account has a £1.5k OD which is maxed out every month, but is my main account - salary goes in & all DDs etc come out. Obviously I've listed the OD as a debt in my DMP, so it probably makes sense to stop using it while I clear the OD through my DMP. So, do I just open another basic account for salary & DDs? Can I use a switching service or do I need to do it all myself? Can I use the same bank as my current account (Natwest) or should I go elsewhere?

Hi,


Basic par for the course when starting debt mangement is to open a new, basic bank account, with a lender you have no debt with.
Do not use the switching service, you will just be transfering your debt to your new account, and be no further ahead.

Do it yourself, online is easiest, get your banking transfered to your new account before you do anything else.

Another important point is to save up a good emergency fund, as you will not have access to credit once the DMP is in full swing, this is usually done by with holding creditor payments for a few months, whilst you take advice.

jupitercrash

Thank you for the advice. I have a Monzo account already so will switch it all over to that myself.

Re: emergency fund - do I just cancel the direct debits & tell them they’ll hear from StepChange? How long can I withhold payments from them before starting the DMP?

Willing2Learn

jupitercrash wrote: »

Re: emergency fund - do I just cancel the direct debits & tell them they’ll hear from StepChange? How long can I withhold payments from them before starting the DMP?

You need to write to each of your creditors to keep them informed. Use the template linked below:
https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

I suggest you tweak the holding letter. So instead of stating you want them to put the accounts on hold for 30 days, you instead ask them to put the account on hold for either 3 months or six months, whilst you seek advice. That will give you plenty of time to build a reasonable emergency fund, while also encouraging your creditors to default the accounts nice and early. (A default is good news as it means the interest will be frozen and the account will be removed from your credit files sooner).

jupitercrash

Ah great, thank you. Going to print & send tomorrow. Should I cancel the DDs anyway or wait to hear from them? Can they refuse?

Sorry for all the questions - years of burying my head in the sand means I’m completely clueless with this stuff, & absolutely terrified.

Willing2Learn

jupitercrash wrote: »

Ah great, thank you. Going to print & send tomorrow. Should I cancel the DDs anyway or wait to hear from them? Can they refuse?

If it were me, I would advise them in your holding letter that you will be cancelling the DDs, while the accounts are on hold. Maybe also include a line to say that the you expect full DMP payments to begin DD/MM/YYYY (in either 3 or 6 months time).

You don't need to wait for responses as you will be taking control of the situation. Your creditors will have no choice but to accept the situation. In the unlikely event of any creditor choosing to decline your offer, you do it anyhow, as they have it all in writing and have no real choice.

jupitercrash

Thank you so much! You lot are all so helpful!

Marble030509

Hi guys

I have had a very concerning letter this morning from Moorcroft Debt Recovery Limited.

It says an Argos Ltd debt has been moved to their home collections department.

The next paragraph is the most worrying.

It says this may involve our local representative calling at your home address. The purpose of the visit will be to assist you with a repayment plan.

Is there anything I can do about this?

Thanks

Willing2Learn

Marble030509 wrote: »

Hi guys

I have had a very concerning letter this morning from Moorcroft Debt Recovery Limited.

It says an Argos Ltd debt has been moved to their home collections department.

The next paragraph is the most worrying.

It says this may involve our local representative calling at your home address. The purpose of the visit will be to assist you with a repayment plan.

Is there anything I can do about this?

If it were me, I would write back to them, clearly stating that you do not consent to home visits and that any such visit would be considered psychological harassment. Also include a sentence to clearly state that you will only accept correspondence in writing via Royal Mail.