New to DAS DPP

Jkmo

Good evening all, I'm hoping to sleep for the first time in a long time tonight after having started to address things via SC. 

It was sobering to see the extent of my debts. Every month I was having to transfer myself money off my cc to stay afloat so it was easy to bury my head in the sand. When I totted things up I realised I'm actually minus once my debts and essential expenses come off. 

I have settled on a DAS and will be uploading my bank statements and other evidence tomorrow.

I have a couple of questions though - I've never missed a payment and my dd are all due to come off around the 27th of this month. Do I cancel them now and write to everyone or stay silent? The temptation of finally being able to book a dentist appointment and get new tyres - with my own money - is giddying.

Also an unsecured loan and a small overdraft which will be part of the plan are with my bank, RBS. Do I need to get a new account ASAP or continue using this one? How would I stop the loan payment?

My account is basic, the one with the overdraft has been stopped. 

I appreciate all help and thanks already as my lurking here gave me the impetus to stop ignoring the scary truth and do something about it.

Grumpelstiltskin

You may have to wait awhile for an answer as you need someone who knows the Scottish system well, unfortunately most of us are in either England or Wales.

RAS

DAS. I assume you are in Scotland? Debt is handled differently there. 

Another thing to ask yourself is whether you are making payments yourself? Why not do a self managed DMP rather than DAS.

Jkmo

Thank you, I have also posted similar on the Stepchange board. 

I need someone else to manage this for me as I've proven that when it comes to money I can't manage things well at all.

RAS

OK.

Yes, you should open up a new basic bank account with a bank not associated in any way with RBS. Co-op is one option, Barclays are also an option, or go for Monzo or Starling. These accounts with different wallets.

So you can work out the annual cost of tyres, service and other expendables, divide by 12 and save that much per month into the wallet. So if the service recommends new tyres, you have the money waiting. Ditto, holiday, medical and dental, Christmas and birthdays, insurance. If you go for a traditional bank account, you might want a second one in a different bank or a savings account for those items.

And I'd get a savings account for your emergency fund. Before you start your DAS try and save one or two months excess beyond essentials into the emergency account. We see a lot of panic,
a) because people don't have any financial cushion if they need new tyres and don't have a credit card,
b) they are too hard on themselves when making their initial budget so it's not sustainable. Your creditors aren't trying to squeeze you dry, they'd just like a steady income.

Jkmo

Thank you, I appreciate this.

DickCadden31

How has your DPP gone so far? I'm looking to start one at the end of the month and would be grateful if you had any advice?

Grumpelstiltskin

DickCadden31 said:

How has your DPP gone so far? I'm looking to start one at the end of the month and would be grateful if you had any advice?

The OP hasn't been online since 23rd. May so you are unlikely to get an answer.