Just pulled my head out of the sand

DeterminedMama1029

Hi everyone,

I have been lingering here for some time and have spent hours and hours (mainly through the sleepless nights) reading posts about self-managed DMPs. 

I have finally “pulled my head out of the sand” and decided that it is time to take control and to try and eliminate the constant sicky feeling I have around my debt.

I have a considerable amount of debt - over 60k (just horrendous, I know) and am using credit to live now so enough is enough. 

Not only will my journey need to be a focus on getting rid of this debt but it will also be to try and get rid of a 25 year long mentality that using credit is fine. Clearly, credit and I don’t have a good relationship so it’s time for me to bid a fond farewell to it.

I have set up a Nationwide Bank Account (currently with Lloyds) and am awaiting the card and banking details for that, which should be with me at some point this week I hope. 

My first question (of very very many I suspect) is regarding my bank debts with Lloyds. I get paid this week and my plan was to cancel all non-essential DDs for the coming month from my Lloyds account, leaving only the Lloyds payments and priority payments. During June the plan would be to change my bank account details my wage goes into ready for the end of June and to update all of the essential debts details ready for the July payments to come from Nationwide.

I have two credit cards, a large loan and an overdraft with Lloyds so I’m assuming I will make those payments this month as my wage will be in there and I assume they can take the payments anyway, then stop paying from July when my wage will be in Nationwide? The Lloyds bit feels the most confusing bit for me at the moment.

Does this plan seem a sensible one regarding the switching?

Am so thankful to have stumbled across you guys and apologise in advance for the endless questions I will doubtlessly have over the coming months. 

tigergambit

It rather depends when the DDs come out of your account. I guess your CT (and mortgage/rent) will come out early and then it's just your utilities. If you can you should set up the utilities ones on your Nationwide account and draw the money out of Lloyds as quickly as possible and not pay your Lloyds CCs and loan. Not a lot you can do about the overdraft.

DeterminedMama1029

Thanks Tigergambit. All of my utilities come out early too so i will need to adjust all of those to Nationwide from July. My bank card and online details etc all arrived together this morning from Nationwide which has been a positive move:

I’m super nervous about the whole process but just going to hold my own, follow the advice from here and go for it! 

So will my overdraft then be counted as a default with Lloyds? The bank account linked debts seem to really confuse me at the moment! 

tigergambit

Yes, the overdraft will behave similar to your loan and CC debt. At least mine did!

It is very scary and nerve-wracking at the start but as debts start to default and you end up with affordable payments and able to live a little again things do get better. Just be prepared for everything to happen very slowly!