DMP mutual support thread part 13 !!

purplepaws

Oriax wrote: »

Hi all,

Been lurking and picking up all your excellent advise .. just thought I'd add my experience so far to this invaluable knowledge base.

30/11/18 was my LBM. After 30 years of seemingly never ending debt I finally acknowledged I could no longer go on living this way. I had always prided myself in my 'bills first' mantra, however upon nearing the end of my credit options, a serious health condition for my wife and a realisation that I would be retired and still paying off interest on debts I had paid off many times over, I had a quiet word with myself. When your using your CC to stock the fridge it's time to change.

I have chosen the SC DMP route and I'm scared to death, I hate not paying my way properly but I know I have to do this. My holding letters went out on Monday and today I cancelled my creditors direct debits while my plan is being set up.

Now I am forewarned of what is to come if feel some much better and really cannot thank all contributors to this thread enough, I really wish I had done this sooner.

To anyone delaying pushing that button, as I did numerous times, don't, you finger won't fall off

The journey begins ...

Hello and congratulations!
Just a quick question - have you set up a new 'basic' bank account?

Oriax

purplepaws wrote: »

Hello and congratulations!
Just a quick question - have you set up a new 'basic' bank account?

Hi purplepaws,

Quick answer is no, I have a relatively low overdraft (which I've not included in my DMP) and non of my unsecured debts originate from the Lloyds group of creditors so I didn't really want the extra hassle .. please tell me I was right ???

purplepaws

Oriax wrote: »

Hi purplepaws,

Quick answer is no, I have a relatively low overdraft (which I've not included in my DMP) and non of my unsecured debts originate from the Lloyds group of creditors so I didn't really want the extra hassle .. please tell me I was right ???

Yep, sounds good. We made the mistake of notifying creditors that we were 'experiencing financial difficulty' before setting up a different account. When we tried to get a basic account, we were told computer says 'No'. However, like you the debts are not with the company we everyday bank with so we should also be fine. It was an interesting exercise nonetheless, in seeing just how quickly they all pile in to label you as a risky customer!
Good luck and keep us posted!

Oriax

purplepaws wrote: »

Yep, sounds good. We made the mistake of notifying creditors that we were 'experiencing financial difficulty' before setting up a different account. When we tried to get a basic account, we were told computer says 'No'. However, like you the debts are not with the company we everyday bank with so we should also be fine. It was an interesting exercise nonetheless, in seeing just how quickly they all pile in to label you as a risky customer!
Good luck and keep us posted!

Pheeeeeeew

[Deleted User]

I'm confused by the whole banking system in relation to DMPs. I had overdrafts and credit card debts with both Santander and Lloyds and they were all included in my DMP even though the overdraft balances were really low (£300 and £700).

I opened a basic account with Nationwide which I'm really happy with. I had no prior connection to them. Santander immediately closed my bank account when I started my DMP but Lloyds never did although they closed the credit card account. I didn't want to risk banking any money in the Lloyds bank account in case they used it to offset against debts and I cancelled all DDs etc to and from it. It remained empty until I received a cheque for a very small amount and my nearest Nationwide branch being 16 miles away I decided to deposit it into my Lloyds account via my nearby branch. Everything was fine, I left it a few days after clearing and then withdrew it at an ATM. No problem. They even sent me a new contactless debit card when the old one expired, even though I was on a DMP and still owing about £11000 to the credit card at that time.


I'm glad I still have that account as it's a standard account not just a basic one which was all Nationwide would give me. Now I'm debt-free (with Lloyds anyway) I may start using it a bit and keep it available in case I decide to switch in the future when another bank has a good switching offer on;)

usedtobeblue

Hi everyone, just after a little advise. I've been on my dmp with stepchange since Jan and currently paying £300 a month. I thought i was going to be so much better off and things would so much easier but I'm finding at the end of the month i have hardly any money left and I'm really scrimping by, like raiding saving jars to pay for school dinners etc, when i did my initial I&E i was hoping i would have £50 a month to put away but this never ever happens. I am by no means extravagant so its not that I'm splashing the cash.

I owe £26k and all but 2 of my creditors have defaulted me to date.

I have 2 kids aged 16 and 13.

Has anyone any advise as to what i should do next. I am a home owner but i dont want to go go down iva/bankrupt route. All advise welcome

Willing2Learn

Hi usedtobeblue,

Over what period of time will you be paying £300/month?
Are you saying the amount is too much and is unsustainable?

usedtobeblue

Willing2Learn wrote: »

Hi usedtobeblue,

Over what period of time will you be paying £300/month?
Are you saying the amount is too much and is unsustainable?

Hi Willing to learn, i have another 6 years. Yeah i think i maybe just underestimated a few bills here and there. ive recently cancelled pet insurance and have started online shopping to try and cut costs, but there just never seems to be enough money.

Willing2Learn

usedtobeblue wrote: »

… i have another 6 years. Yeah i think i maybe just underestimated a few bills here and there. ive recently cancelled pet insurance and have started online shopping to try and cut costs, but there just never seems to be enough money.

If the amount is too high and if you feel at risk of defaulting on the DMP, then my suggestion would be to let SC know about this ASAP. Redo your SOA (or whatever you used for your I&E evidence), so that you can successfully argue for a lower amount.

usedtobeblue

Willing2Learn wrote: »

If the amount is too high and if you feel at risk of defaulting on the DMP, then my suggestion would be to let SC know about this ASAP. Redo your SOA (or whatever you used for your I&E evidence), so that you can successfully argue for a lower amount.

Thanks, ill give them a ring. Just goes to show how much i was using credit to get by!