Advice for a newbie on timing of switching bank accounts and movement into a DMP

[IF]

Re: Advice for a newbie on timing of switching bank accounts and movement into a DMP

I've actually updated that thread this morning!! Removed the old example agreements and replaced with prescribed terms.

I know.......that's why I quoted it

[weejo]

Re: Advice for a newbie on timing of switching bank accounts and movement into a DMP

Have been on phone and application form is being posted out to me. But I am off work on Wednesday and I aim to go into town to open one in person.
Again it is the timing of the whole thing as my pay goes in on Wednesday and it is too late to switch it in time for my priority debts to be changed in time as they mostly come out on 1st of the month. Most of my vital bills come out between 29th and 14th

I haven't defaulted on anything, just pared back over and over again until life is a struggle. I was thinking about submitting a default minimum payment for £10 to each creditor in February, rather than nothing, then cancelling my direct debits, but I worry that Halifax will catch on and freeze my account and stop me withdrawing my wages money. It is quite a frightening prospect. But I am determined to make some sort of change.

[PlanB]

Re: Advice for a newbie on timing of switching bank accounts and movement into a DMP

it is the timing of the whole thing as my pay goes in on Wednesday and it is too late to switch it in time for my priority debts to be changed in time as they mostly come out on 1st of the month. Most of my vital bills come out between 29th and 14th.

When I first got into a pickle with money I called up each one of my creditors and told them I was cancelling my direct debit because I was moving banks so they needed to cancel their DD at their end too. I said I would make my next payments by debit card until the new bank account was up and running. They were all perfectly happy with that. I then went into my online banking account and cancelled all the DDs which I didn't want to go through that month.

If that option appeals to you then you do still have time to put the plan into action before those DDs are due out next week. If you want to pay each of them £10 next month and it won't cause you any more hardship then why not.

Once you're certain the mortgage has gone through and any other priority debts have been taken from your wages it may be possible to draw out the rest of your salary in cash and deposit it into your new co-op account. Will that account provide you with a debit card and how quickly can they do that?

I went into a DMP for 9 months to calm things down. Every single one of my creditors (I have 23 ) stopped adding interest immediately. Once the DMP was running smoothly I changed my mind and cancelled it. Best decision of my financial life. I've not paid any of those creditors a penny since June 2010. In two years the debts will be statute barred and they can't touch me.

You say that as yet you have not defaulted on any debts. But you also have no life right now. Let us help you get that back

[weejo]

Re: Advice for a newbie on timing of switching bank accounts and movement into a DMP

Thanks for the advice. It is good to know that there is light at the end of the tunnel.

I am working an early shift tomorrow and might try and get a half day to go sort the bank account. I might sneak some money out of bank account on payday and the rest after my mortgage has come out, that way hopefully it won't start ringing any alarm bells. Then get ringing round my priority bills, electricity etc. and get this set up in time to be able to cancel all the other direct debits.

Does anyone know what the bank does when it is left with a bank account with an overdraft but no income? Bearing in mind this is the same bank that my mortgage is in (Halifax).

[PlanB]

Re: Advice for a newbie on timing of switching bank accounts and movement into a DMP

Does anyone know what the bank does when it is left with a bank account with an overdraft but no income? Bearing in mind this is the same bank that my mortgage is in (Halifax).

I don't have the answer to that.

There's no reason for the mortgage division of the Halifax to give a toss as long as your mortgage payments are made on time. They may share a computer database so you can't hide the current account overdraft situation if they decide to go looking. However I doubt your bank manager will ring up the mortgage arm of the Halifax to grass you up.

Have you exceeded your agreed overdraft limit? I would think that the fact your wages aren't being paid into your account won't matter until you do and they decide to look more closely at what's going on. At that point there is a risk they may call in your overdraft facility but not until.

Take this one step at a time. You're wise to check out all the *what ifs* but don't lie awake at night stressing over things which haven't happened yet

[patchouli]

Re: Advice for a newbie on timing of switching bank accounts and movement into a DMP

Does anyone know what the bank does when it is left with a bank account with an overdraft but no income? Bearing in mind this is the same bank that my mortgage is in (Halifax).

I left Barclays back in 2008 with a whopping £2k overdraft.. it's still there gaining interest.. I am going UE on it in the next few weeks...

When you calculate how much you have owed since day one and how much you ahve ACTUALLY paid back up to date then you will be in shock.. they've had their money... they aren't bothered when you are left short each month or that you are not relaxed and enjoying life.. so why give them any more power.... sod them.

PLUS.. they are all insured to the hilt.. they get their money back if you default and then.. then they go and sell your bad debt and make more money. pfft