Will a DMP close my accounts?

DCFC79

ev8 wrote: »

Thank you, can I ask why I will need a new bank account?

Should have asked if the debts are with a bank ?
Or just credit card debts ?

theoretica

A DMP usually involves paying less than the minimum to your debts and trying to negotiate not to pay interest - any lender you are doing this to is not going to be willing to lend you even more!

ev8

DCFC79 wrote: »

Should have asked if the debts are with a bank ?
Or just credit card debts ?

It's just credit card/store card debt. I don't have an overdraft, well I do, but have never once dipped into it. For some reason I've never wanted to mess with my bank card.

EssexHebridean

ev8 wrote: »

It's just credit card/store card debt. I don't have an overdraft, well I do, but have never once dipped into it. For some reason I've never wanted to mess with my bank card.

Store card debt tends to be VERY expensive - I suspect you could be dealing with some horrible interest rates there.

By the way I have replied to the thread you started earlier in the month as well, as I noticed earlier you'd had no replies on that one.

ev8

EssexHebridean wrote: »

Store card debt tends to be VERY expensive - I suspect you could be dealing with some horrible interest rates there.

By the way I have replied to the thread you started earlier in the month as well, as I noticed earlier you'd had no replies on that one.

Yes, but luckily the balances are quite low, I was wondering whether to just clear those off quickly and be done with them.

I have replied on that thread too, but the MSE credit club was really great thank you. It's great to see everything laid out like that.

It says I have a good to great credit score (945) and have a high chance of getting a 0% transfer card, which I think should be my first stop now.

Sorry to be all over the place, I just wanted it cleared and thought about random things to help!

engineer_amy

ev8 wrote: »

Yes, but luckily the balances are quite low, I was wondering whether to just clear those off quickly and be done with them.

.....
It says I have a good to great credit score (945) and have a high chance of getting a 0% transfer card, which I think should be my first stop now.

If you have some saving available, the best advice is probably to clear the cards with the highest interest rates first, this will save you the most money in relation to interest charges, then will free up more of your income each month to reducing the rest of the debt (at lower interest rates).
If they are small balances, you hopefully can clear them quickly, and (in my head anyway) it is motivational/satisfying to get the number of debts reduced.


Secondly, if you think you can get a 0% balance transfer for any of the other larger balances this will greatly help you! Good Luck!

EssexHebridean

That's great news about the Balance Transfer possibilities - remember you can usually transfer multiple cards across to the new one as long as you don't go above the limit it sets you - so well worth getting straight on with that and seeing how much you can get shifted. well done! :T

Suseka97

I'm with EssexHebridean - definitely explore the 0% balance transfer option and move your highest interest card balance across to that and any others you can up to the limit set. Then if you have any balances you cannot transfer - focus on throwing as much as you can against those and return to clearing the 0% card as quickly as possible. If you can't get a 0% card then start paying as much as you can afford above the minimum on the highest interest account and keep the others at the minimum payment, once that one is cleared focus on the next highest and so on.

It's good that you are not using these credit accounts any longer, so keep it that way - and I do understand why you would want to have some sort of financial buffer available. If you did end up in a DMP - again, you could choose to delay the start in order to save up an emergency fund to a level you are happy with.

But first things first - go see where you stand with a 0% balance transfer and good luck.

ev8

Suseka97 wrote: »

I'm with EssexHebridean - definitely explore the 0% balance transfer option and move your highest interest card balance across to that and any others you can up to the limit set. Then if you have any balances you cannot transfer - focus on throwing as much as you can against those and return to clearing the 0% card as quickly as possible. If you can't get a 0% card then start paying as much as you can afford above the minimum on the highest interest account and keep the others at the minimum payment, once that one is cleared focus on the next highest and so on.

It's good that you are not using these credit accounts any longer, so keep it that way - and I do understand why you would want to have some sort of financial buffer available. If you did end up in a DMP - again, you could choose to delay the start in order to save up an emergency fund to a level you are happy with.

But first things first - go see where you stand with a 0% balance transfer and good luck.

No, I don't use them at all, I have no need. I always intended to use them and then pay it off right away, but then ended up with debt.

Yes, I just would like to have a back up of having it there for me should I ever need it. Life throws crazy things at you, you just never know if you'll need it. I won't keep the cards in my purse or anything, it's just there in case of a huge emergency.

ev8

Does anyone know though, if I apply for the 0% interest and transfer card and get turned down, does that affect my credit rating?

Thanks.