Implications of a debt management plan - practical

[Brightyellowshoes]

Have applied for a plan and thinking through. As I have an overdraft I will need a new bank account. The likely action when my bank is contacted is to withdraw the overdraft.

So I need to transfer my pay and other income to be paid into a new account otherwise I am likely to lose all income at the point the overdraft is withdrawn.

I have applied for two current accounts and turned down so have applied for a basic account. Hopefully I will get that.

I will then have a more basic debit card. I guess for the next number of years I have no card for things like hotels that need to swipe a credit card.

The card also does not work on pre pay petrol pumps - easy to work around.

Are there other implications I am not thinking of?

I have a DMP through stepchange. I still have an overdraft facility on my bank account. Have you been told it will definitely be withdrawn?

I called the bank and they said that it is likely unless I don't include the overdraft in the plan. I applied online for the DMP and it was clear overdraft should be included. I will call them Tuesday to find out more.

Did all your creditors sign up to your plan @Leftittothelastminute ? I'm worried some won't and I will be in a difficult position trying to make additional payments alongside the plan.

I would call Stepchange or the CAB for advice. Have you organised your management plan through SC? If not, you should.

I have used Stepchange. Have submitted the info required online so very early stage.

Yes they did, I was worried about this but it's been fine. I have 10 months left on the plan. It is so good to see the amount outstanding going down each month.

The debit card you get should work the same, although obviously you will struggle with anywhere that takes a deposit like petrol.

Look at Starling, if you don't apply for an overdraft there is no credit check beyond the identity check so you should get that and it's a proper debit card.