DMP with Payplan? - Im a NEWBIE - HELP!!!

Culater_2

I need to be able to do direct debits and really to track my account online - is there banks that would offer me this now? If they do a serach they will probably refuse me because I have been turned down by other credit card and loan companies anyway. My credit rating says good/excellent but I have lots of credit compared to my salary. I earn approx 29k pa and I have debts of approx 26-27k!!

Culater_2

Do you have th link for these sections from Payplan - I cannot find them!

Culater_2

Is there anything I should NOT include in my budget and are there things which Payplan will say I have to reduce, like shopping and child costs etc?

Culater_2

Could I not keep my Barclays account and chip away at the overdraft myself on a monthly basis?

Culater_2

Once I have spoken to Payplan should I then not pay any of my creditors until my DMP is set up? Or do I continue to struggle until DMP is through? Sorry for all the questions guys n gals!!! Be gentle!!

rayday2

http://www.hmrc.gov.uk/manuals/dmbmanual/DMBM800120.htm - this link is the industry standard of acceptable costs for a budget

http://www.payplan.com/pdf/bank_acc.pdf - information about basic bank accounts.

http://www.payplan.com/debt-library/miscellaneous.php - information about credit companies and who they are related to or DCA they use.

Not sure if previously covered but if you look at the link directly above you need to make sure you choose a bank account that is not related at all to any companies you owe money too. Your bank has only been good to you because you were good business you are about to be bad business and thats when you run into problems. Also companies can take money from your account if they are related it is in the small print we never read! Also if you had money in your current account would you really like them telling your credit card how much you have?

Its all for the best and believe me two months down the line you will feel no loytaly to banks!

I opened a cahoot account online which is brilliant for me for internet banking and so have A&L.

Culater_2

I will presumably have to go into a bank to open the account because I need internet banking, debit/cash card - I know some places dont take electron cards so I wanna try and stay away from them. ALso need to be able to pay bills by dd/standing order(?)... any advice - I cant have anyone linked to Halifax, Barclays, Aliance & Leic, MBNA, Abbey or Morgan Stanley!!! - Does that leave any bank???

Oh my cousin is manager in Barclays so will I still need to change acount??

tigerfeet2006

newlywed wrote: »

They are a charity organisation and so don't make money out of you and won't advise anything that's not right for your situation.

Payplan are NOT a charity organisation. They are one of the better debt help companies that work for the consumer and not the creditors, but they are not a charity and have to make money from somewhere, like IVA's though I understand they don't charge for DMP's.

CCCS, National Debtline and the CAB are the charity organisations.

chevalier

"Once I have spoken to Payplan should I then not pay any of my creditors until my DMP is set up? Or do I continue to struggle until DMP is through? Sorry for all the questions guys n gals!!! Be gentle!!"

I believe that when you are going through the setting up period, there is a letter that Payplan gives you with your payplan number on, which you can send to your creditors to inform them what is going. They will advise you what to pay as well.

"Could I not keep my Barclays account and chip away at the overdraft myself on a monthly basis?"

There are two reasons for NOT doing this. The first is that you can not show preference to one creditor over another. Barclays with your overdraft is a creditor, so has to be treated the same. So if you have £300 to put to the DMP, then this is shared out proportionately between your creditors including Barclays.

The second reason is that sadly, having a 20 year relationship may mean a lot to you, but means NOTHING to them. They may recall the overdraft, and close your account, if they choose to. Not only would this result in unauthorised overdraft charges, but all your direct debits would bounce too, resulting in more charges. Could you find £2k to repay it this month? No then that is the reason for opeing another account. I think rayday2 has supplied you with a link so you can check which banks are not connected to Barclays.

"Is there anything I should NOT include in my budget and are there things which Payplan will say I have to reduce, like shopping and child costs etc?"

Again Rayday2 has given you the link to what the industry standards say you can have per person for various categories. But you can put down that I don't know have haircuts (when you are bald for example!), and then use this money to put towards something that is not allowed (like hmm golf course fees or something). You don't mention how many people are in your household, but yes you may have to trim your food budget. Eg if you were paying out £500 a month on groceries, and you have 2 people in your household, then this would be seen as too much. But economies can be made. How about you put your SOA on here so that we can help you trim it in preparation?

Ref Childcare costs, ask both of your works if they run a childcare voucher scheme. You can both apply if they do, and then save on childcare that way. The scheme does not cost the company anything to run, and there is an article about it on the main site you may worth reading up on.

"I need to be able to do direct debits and really to track my account online - is there banks that would offer me this now? If they do a serach they will probably refuse me because I have been turned down by other credit card and loan companies anyway. My credit rating says good/excellent but I have lots of credit compared to my salary. I earn approx 29k pa and I have debts of approx 26-27k!!"

You can do direct debits for sure from a basic bank account. But if you want online banking then you should try and get an account before the DMP starts. I have no income really, but got a Smile Account with a debit card and a overdraft. As it is an online bank then of course you can track it online. You can deposit money at any post office, and withdraw it from post offices, or ATM's. You can also set up direct debits, and standing orders from it. And I don't THINK they are linked to any of the banks etc you mentioned above.

Hope this helps
chev

newlywed

tigerfeet2006 wrote: »

Payplan areNOT a charity organisation. They are one of the better debt help companies that work for the consumer and not the creditors, but they are not a charity and have to make money from somewhere, like IVA's though I understand they don't charge for DMP's.

CCCS, National Debtline and the CAB are the charity organisations.

Thanks - I'm with CCCS and thought payplan were a charity also - thanks for clarifying