Cancelling payments

[Kazzy E]

Hi all, tomorrow is the day that my direct debits start coming out of my account for the new month's payments to my creditors. I have noted from other 'posters' that you should cancel all direct debits immediately you start your IVA journey. I am still at the very beginning, having only just submitted my paperwork to Melanie's team but I am so scared of cancelling the dd's as I know then, the calls will start. I know what to say, as I have received the intro pack but still I am afraid as I have never missed any payments, but know that I can't carry on as we don't have enough to pay all the month's payments hence the IVA. You will probably think I am worrying for nothing, but I can't help it. I have contacted the 'new' bank today who said that my application is pending and I should hear from them within the next 7 days but they assure me there are no problems. Does anyone know, if I go physically to the branch tomorrow, will they be able to speed up my application or will they not be able to intercept the application which was done online? I really need this other account up and running as I need to transfer money, otherwise, if I do cancel the dd's tonight, there is a possibility that my bank will stop the payments anyway from my account. I am such a worrier, I know I won't sleep tonight... should I cancel the dd's, otherwise £164 will come out for a loan tomorrow. Thanks for listening Kazzy x

[MelanieGiles]

Kazzy - we have already written to your creditors, so they will soon be more than aware of what you are doing in any case. It is quite normal to cancel D/Ds when you comment the IVA journey, and the banks will be very used to this as well.

[Adam Davies]

Hi
If you are committed to the IVA then yes cancel the DDs.
Take the cash out of your account until the new account is up and running.
Regards

[Kazzy E]

Hi Melanie & Andy, thanks for your replies. I have a day off tomorrow to try to sort out the banks, but if I go into my bank tomorrow to draw out all the money, will they know at the cashier's desk that I cancelled my dd and their loan payment was not made? Kazzy

[suzanne100268]

Kazzy - I did exactly the same last month - took all the money out of our account and put it in the another and cancelled the DD's. I didn't pay any creditors last month as advised by Melanie. I was going to put the money aside for the first IVA payment but then the washing machine broke down!

[Kazzy E]

Thanks Suzanne, I haven't got a problem with taking the money out, but the new account isn't properly up and running yet. Thats what I intend doing, putting the money away for the 1st IVA payment but I have been advised today that, as my main creditor is NR, I should expect the process to take approx an additional 4 wks on top of the normal process of 4-6. So, on that basis, it will be appx 3 mths before anyone gets any payments, by which time they will all be jumping up and down.

Suzanne, how far are you into your process. Have you had loads of calls from your creditors yet? Also, re the utilities, can they be paid in cash anywhere for the period of bank 'limboland'? I am not sure whether I could use paypoint, but never have so not sure how it works. Rgrds Kazzy

[suzanne100268]

Hi Kazzy - we have also got NR as a major creditor. Melanie approached NR first to get their opinion on how they would vote. We were told that NR would take approx 4 weeks to reply, but its only been 2 and we have just got the go ahead so Melanie's team are on with drawing up the proposal.
Our creditors were written to by Melanie's team at the beginning of April and I sent my own letter. We have only heard from the Halifax - DO THEY EVER HAVE A DAY OFF? The other calls seem to have dried up (I am now tempting fate!).

So far so good....we now feel that we are on our way to solving our problems.

As regards your utilities, use paypoint or the post office.

[Kazzy E]

Thank you so much, I feel much better now. Thats exactly what Melanie's team are doing with us, approaching NR first, so maybe our reply may be as quick from them. If so, that will be good news. Do you mind telling me which other companies you owed? Only curious, as our case seems similar (I don't want to know figures ) I can pay through either post office or paypoint, what info do you need - just your account no's for each utility? I have just cancelled the loan dd, and don't feel good about it, but needs must.

I hope you haven't tempted fate and that you are left alone, fingers crossed.

Kazzy

[Soulgrowth]

Hi Kazzy ... it's always a bit scary at this stage. I remember when I first embarked on my IVA I had never missed a payment to any of my creditors.

Make sure that you get that new bank account sorted out and cancel those direct debits as this will then put you in complete control of your finances which is really important at this stage ... everything else will pan out in time [:)]

Debbie

[Kazzy E]

Thanks Debbie. Yes, thats what I need to do, as I don't feel in control of my finances at the moment. As long as I can pay the essentials, I know Melanie with help me with the rest, but I've been so used to paying everything by dd, I don't know how to pay with cash. Sounds really silly doesn't it, but you do tend to rely on your bank and forget about the payments coming out and just check the statement at the end of the month. I will feel better tomorrow when I can get into town and sort things out. Thanks for the advice. Kazzy

[suzanne100268]

Kazzy - you just need your account numbers.

We have Egg, MBNA, Citi, Blackhorse, Halifax, First Direct, Bank of Ireland, Next and a couple of other mail order. And.. NR - this was a Together Mortgage with an unsecured loan element.

We have resigned ourselves to the fact that we can't pay everyone and we are taking positive steps to sort our problems out and won't be bullied into making payments (as I have done in the past).

Good luck - we are both in good hands - I have absolute confidence in Melanie and her team x

[Soulgrowth]

Sometimes that can be part of the financial rehabilitation that comes with embarking on an IVA. When I changed my banks prior to my IVA I cancelled all my direct debits. The ONLY ones I set up again were the bare essentials ... I went from something like 12 direct debits to 4 ... mortgage, council tax and income protection and buildings insurance payments ... everything else I now pay for when I wish to pay for them ... with online banking nowadays it is just as easy to send an online payment at the appropriate time and I am in complete control of my finances [:)]

Debbie

[Kazzy E]

Spookily we have Egg, MBNA, Blackhorse and Together unsecured (we sold our house and just kept that element at a well inflated interest rate). Surprising when you get talking to people how similar people's situations are isn't it? I need to adopt your correct attitude re bullying. Everyone on this site is taking positive steps to sort out their problems and that's why I love this site so much, cos everyone is in the same boat and no-one judges you. Whoever instigated this site is marvellous (and so is all the support) Thank you.

[Kazzy E]

Sorry Debbie, we must have been typing at the same time. I intend to only have the essentials with the new account but I think you do get discounts from your utilities if you pay by dd? If I had my way, I would have prepayment meters for gas and lecky but my landlady doesn't have them fitted. Online banking is brill as I work full time plus hrs and don't have time to get into places to pay bills. Watch this space, I'll feel better tomorrow. Thnx Kazzy

[Moneystinks]

Hi Kazzy & Suzanne

SNAP!!

I have just done exactly the same as you. On April 15th (pay day) I went into the bank drew out all the money stood and cancelled what seemed like millions of direct debits and then handed a letter to the cahsier statingI wished to close the account - made excuses I had to dash off to an appointment and left! The scariest thing I have ever had to do! I too had never missed any payments and more you read this site more you realise this is the case quite alot of the time. I had a story ready if they asked why I was cancelling dd's - simply I would arrange payment via another method - they didn't even bat an eyelid.

I got home and rang every utility company, phone, home ins, car ins etc and set up new dd with the new account - if you haven't got one yet then try and may arrangements to pay via paypoint or postal order. I told them I had a disagreement with the bank spat my dummy out and closed the account - I laughed it off and said in hind sight it was stupid[;)]

Once all that was out of the way I sat and typed letters that Mel's team had sent and sent them off to the creditors. Since kicking this off in April I have had x2 calls from Egg, x2 from RBS, x1 Virgin (MBNA) and 50 million from Halifax and NO I don't think they have a day off![:(] One call handler actually put the phone down on me when I told him I was not going to be bullied and that his telephone manner left a lot to be desired - CHEEK lol[:p] What he didn't bank on was me calling back and making a complaint against him for being rude and unhelpful in a difficult situation - I got an apology[;)] I have had a few letters that I am a bit scared about but true to form Melanie and her team and the Forum members have put my mind at ease.

Hopefully we will all come through this together. I too have NR as a main creditor.

Good luck to you both! [:D] XX