Credit cards - can you ring them and ask to reduce payments?

survivor84

Thank you for this. So in theory the bankruptcy is less time and I pay back less? Thanks so much for your help x

survivor84

Right, wanting to open new bank account today. I am a teacher and thus it's half term so wanting to get everything sorted while I've got some time. I am a little confused about the bank accounts. I have tried looking on the money saving expert website about the best deals. What I'm worrying about is switching accounts and them transfering the overdraft I owe as well, which I don't want to do. So should I just open a basic bank account and not switch? Sorry!! xxx

survivor84

At the moment thinking either the first direct or marks and spencer one? x

Willing2Learn

It all depends. If you decide on bankruptcy, then you will need a Basic account as most banks won't allow undischarged bankrupts to have a standard current account. The one that most people here recommend and use is the Nationwide FlexBasic account


If you decide on a DMP, then you can choose from any bank current account that does not belong to any banking group with whom you have debts. Both First Direct and M&S are part of the HSBC banking group.

onwards&upwards

Don’t switch if you have an overdraft, you would just end up with your new bank one of the creditors for your DMP!

Your new account is there to get your salary paid into and pay your bills out of and should have absolutely nothing to do with your debts.

Co-op also do a decent basic bank account.

If you want to tell us who your debts are with we can help you steer clear of accidentally using a related bank for your new account.

survivor84

Have spoken to step change this morning and they have been amazing. Have decided on the DMP, am now cancelling direct debits, I just need to decide on this basic bank account. I have no debt with HSBC so in theory could go for either but I will look at the nationwide one too. Thank you so much for everyone's help and advice it's been amazing. Just need to ring all these cards and explain now. xx

Willing2Learn

survivor84 wrote: »

Just need to ring all these cards and explain now. xx

If it were me, I would do it all in writing. It is just so easy to became flustered and panicky if your creditors start to question things when you are on the 'phone. Much simpler to say exactly what you need in a letter.

Willing2Learn

survivor84 wrote: »

Have spoken to step change this morning and they have been amazing. Have decided on the DMP...

Okay, so StepChange won't recommend what I am about to suggest to you, but it is what we recommend to everyone embarking on their DMP journey.

We recommend delaying the start date of your DMP by six months. This will allow you to save a decent pot of money toward an Emergency Fund (EF). This is because an EF is a vital component of all successful monthly budgets. It would mean you have something set aside for when the unknown happens. Things such as your car breaking down or your washing machine giving up the ghost etc etc. It would mean that when you write to your creditors, to advise them that the DMP start date will be xx November. Some people are nervous about doing this. But as long as you keep your creditors 'in the loop', then they will be satisfied and nothing bad will happen. At the end of the day, it just makes perfect sense to have some money saved up to support you when there is a rainy day event. And most folk end up very grateful for having the cash set aside.

survivor84

Thanks so much guys. My debts are with barclays, natwest, aqua, capital one, argos and drafty.

Step change were very keen for me to start it as of the 1st july. I am currently paying £800-900 back in minimum payments a month. With the budget we've gone through I will only be paying back £62 a month. So with this in view do I still want to delay the start date until November?

Also is there a letter template to send them? I am worried about becoming emotional and upset when explaining the abuse that has got me to this situation on the phone.

Thanks so much x

Willing2Learn

Hello again

Below is a link to a standard holding letter, requesting your accounts are frozen for 30 days whilst you seek advice.

Does the £62/month allow you breathing space to save up an EF? If it does, then I suppose you could start the DMP on July 1st. If it does not , then I would suggest starting in November, so that you can have the money saved up. It would necessitate amending the letter to reflect the fact that you would be starting the DMP on November 1st instead. You could state your reason for the delay as requiring funds for emergency car repairs or boiler maintenance or something similar. Obviously though, the choice is yours. Whichever way makes you feel the most comfortable, is the right way...

https://www.nationaldebtline.org/EW/sampleletters/Pages/Hold-action-on-your-account-%28sole-name%29.aspx

Edit: I forgot to mention. Another good reason to delay the DMP start date, is that it encourages your creditors to default your accounts nice and early. The sooner they are defaulted, the sooner the 'toxic' accounts are removed from your credit files.