Preventing credit/debt (LPA/CIFAS/Bipolar/Learning Courses)

ontophp

hi,
I was given a bipolar diagnosis and one of the characteristics of that is poor spending/money management. I'm trying to sort my finances out and put up some barriers for the future. Please do you have any comment on how effective these might be/if you've used any/what else might help?

1. Assigning a legal power of attorney to a family member - this should mean a family member can effectively cut me off from my finances if they think I'm unwell.
This may protect any existing assets, but I don't think it impacts me getting additional credit (which has been a problem).

2. Putting a note on my credit file which says something like "I have a bipolar diagnosis - do not give me credit"
I'm not sure of the effectiveness of this. I'm told it may, or may not, work.

3. I've been advised to apply for a Protective Registration through https://www.cifas.org.uk/pr.
While this doesn't prevent me aqcuiring credit, it slows the process down. If registered for CIFAS they post things out by mail and apparently it's a slow exchange.
I think it costs £25 for 2 years.

4. I Googled earlier for a money equivalent type service to AA (Alcoholics Anonymous). I didn't find much. Please does anyone have any recommendations on courses/groups/books/learning about improving personal financial control and management?

Thank you

kimwp

How would assigning a legal power of attorney protect your existing assets?

ontophp

If I'm mentally unwell, the LPA can take control preventing me from making poor choices.

kimwp

How would that actually work though, would they change your passwords and take away your credit/debit cards?

ontophp

They'd contact the bank, identify themselves as LPA, and cut me off. It sounds awful in some ways, but hurting my finances without an LPA is likely worse.

PM22

I have a diagnosis of bipolar too so I know how hard this is for you 

kimwp

ontophp said:

They'd contact the bank, identify themselves as LPA, and cut me off. It sounds awful in some ways, but hurting my finances without an LPA is likely worse.

Oh, I see. You'd have to use someone very trustworthy, who wasn't open to manipulation from others and who saw you enough to know when you were having issues. Could you have another account which has a standing order each week with enough for necessities, which wouldn't get cut off?

The other two things seem sensible, why not do those regardless of whether you go down the LPA route?

williewonder

I have Schizoaffective disorder and an intellectual disability. I know how hard it is with the overspending when manic.

I have a Deputyship which the financial department manage at Social Services, I receive benefits and they manage all my benefits. They give me a Personal Allowance of £140 a week and they pay all my bills directly themselves. I always do my food shopping with my support staff on a Thursday when I get my PA and have managed to save some of the money as well. I do save quite alot in my Deputyship account.

I have got a credit card but thats kept in the office here and I have to ask permission to use it, mainly for things like flights and emergency money if I'm aboard.

ontophp

kimwp said:

ontophp said:

They'd contact the bank, identify themselves as LPA, and cut me off. It sounds awful in some ways, but hurting my finances without an LPA is likely worse.

Oh, I see. You'd have to use someone very trustworthy, who wasn't open to manipulation from others and who saw you enough to know when you were having issues. Could you have another account which has a standing order each week with enough for necessities, which wouldn't get cut off?

The other two things seem sensible, why not do those regardless of whether you go down the LPA route?

Hi Kimwp,

Yes, that's right a very trustworthy individual. I actually already have a standing order account - I hadn't considered it - but I will add your suggestion to my plan, ensuring that the SO account doesn't get cut off (though my access to it will be cut). Thanks for the suggestion.

ontophp

williewonder said:

I have Schizoaffective disorder and an intellectual disability. I know how hard it is with the overspending when manic.

I have a Deputyship which the financial department manage at Social Services, I receive benefits and they manage all my benefits. They give me a Personal Allowance of £140 a week and they pay all my bills directly themselves. I always do my food shopping with my support staff on a Thursday when I get my PA and have managed to save some of the money as well. I do save quite alot in my Deputyship account.

I have got a credit card but thats kept in the office here and I have to ask permission to use it, mainly for things like flights and emergency money if I'm aboard.

Hi williewonder,

Thanks for sharing your experiences. I know there are a lot of people with a mental health diagnosis, and there must be a lot of people experiencing turbulent financial times.

It sounds like you've got a good arrangement setup. The Deputyship is a new one to me.

I love the "I do save quite alot in my Deputyship account." - good for you. I will look in to it.

Cheers