Please help may not be able to do DMP

hitabrickwall_2

Hi
I had a briliant day yesterday. I spoke to CCCS about setting up a DMP, I spoke to my husband and came clean about debts. All was good. A DMP is my only option as I cannot afford to make my payments this month, it has all just got too much. The DMP would be in my name only and cannot affect my husband as his business needs a credit line.
One of the cards I have is with Natwest and I also have a personal overdraft with them. We also have a joint account with an overdraft. CCCS advised me getting my name removed from this account so Natwest cannot set off any funds. Husband is not happy with this at all as he is worried they will recall this overdraft and maybe the one on his account. I cannot do the DMP without including Natwest in this but really don't know what to do.
The only options I can see is to see
if Natwest will remove my name from the joint account
Find £3,000 to clear this overdraft and then include that debt in DMP (payday loans or something? seems drastic though)
Remove husbands name from joint account and then include in dmp
Include joint account in DMP and husband move his accounts to another bank
Does anyone have any advice?
Thank you in advance

gonzo127

silly question, have you informed Natwest you are struggling financially and are about to start a DMP?

if not the best thing to do is phone them and speak to them about removing yours/his name from the joint account and how it will affect the overdraft.

personally i would try to get his name removed and add the overdraft to your DMP, this is of course if he is not likely to want to use this account for anything as the moment it is included in the DMP you will need to stop using it!

just try to bare in mind if he is removed from the joint account they can not take money out of his other account to cover this debt as he would not longer be liable for it.

also have you opened a basic bank account for yourself?

Tixy

Is the joint overdraft the only joint financial product you have? you don't have a joint mortgage for example?

If you have missed any payments so far to natwest - on your credit card or gone over your personal overdraft then I would think it is highly unlikely that they would remove your husband's name from this overdraft.

They may be prepared to remove your name from the account, making husband wholly liable for the debt.

Whatever option you take please don't take out a new £3k loan to clear this - and certainly not a payday loan, the charges you would pay would be extortinate and you would have no way to repay back this loan.

DarkConvict

I can't see them removing your husband off the joint account when it is not in credit, it is pretty standard as the liability would lie with one not two people.

As also mentioned, if you have any other joint accounts, i.e. Mortgage you will still be linked. When they do a credit check on him, they will link onto you. See you as a risk and as such bring down his credit worthiness.

Taking out a loan then entering straight into a DMP is a bad move. It would almost look like fraud to some people. You have an intent to repay but not under the terms of the agreement.

I believe unless you can find the cash to cover it, from a family member who can afford to lend it for several years, your husbands rating will take a knock, not just because you are linked but his file will be hit with a default/late payments from the overdraft going down hill.

Hannah_10

Just about the payday loans thing... nooooo don't do it! There are new threads here every day about those and they're charging anything up to 2700% interest. That's not a typo, it says two thousand seven hundred percent. Many people are coming in here saying they have paid to or three times the amount they ever borrowed from payday loans companies back already and the debt is still growing not reducing.

There will be ways out of debt for you but taking out borrowing at a rate probably a hundred times greater than the rate you already pay on that overdraft isn't one of them. There are good people here who will help you find a way, but seriously- payday loans are probably the quickest way to make the whole house of cards come down on you, do not be seduced. If you could find £3000 to pay back a payday loan at a push then you can find £2000 (for example) to pay a full and final settlement. Not that I'm saying a F&F is the right way for you, but that it's an option.

http://www.whatsthecost.com/creditCard.aspx
Look for yourself what happens with an interest rate of 2000% + and anything less than 100% payment each month. You wouldn't believe me if I told you... It's hair-raising.

hitabrickwall_2

Thanks all. I can't risk my husband having a default, it would probably bring down his business. I have spoken to CCCS who have said he none of the debts I am adding to the dmp are in joint names his credit rating will not be affected. I hope they are right

I am going to speak to Natwest tomorrow and see if they will take his name off the joint account. I really don't know what I will do if they won't. I am keeping everything crossed as I need to do this DMP, I have no other option as I cannot afford to make my minimum payments which are due as early as next week. Egg have already phoned me 5 times today as I am over my credit limit and I really don't know what to say to them. I was feeling so positive yesterday when I was on the way to getting the DMP set up and now feel desperate like I have no way out.

hitabrickwall_2

sorry i missed some questions. I have made all payments to Natwest up to date on credit card and have not gone over limit. I occasionally go over on my overdraft but not for a while and it is bought within limit within a day.

Tixy

hitabrickwall wrote: »

Thanks all. I can't risk my husband having a default, it would probably bring down his business. I have spoken to CCCS who have said he none of the debts I am adding to the dmp are in joint names his credit rating will not be affected. I hope they are right

If you are financially associated on your credit files then you being in a DMP will affect his credit rating. Unless you can close every joint account/mortgage etc you have (or make it so it is no longer joint) and then file a notice of disassociation with all 3 credit reference agencies then he will find it harder to get new credit.

Regarding what to say to creditors just now - I would suggest you send this letter out http://forums.moneysavingexpert.com/showpost.html?p=21937969&postcount=52 to show you are seeking advice which should hold them off for a month (not to the bank though until the issue with the joint account is sorted - but you could send it to egg for example).

immoral_angeluk

hitabrickwall wrote: »

payments this month, it has all just got too much. The DMP would be in my name only and cannot affect my husband as his business needs a credit line.

This is incorrect. If you have joint financial association on your credit files because of any joint accounts, then you doing a DMP WILL adversly affect his credit rating as they will check yours as well as your husband's whenever he makes an application.
Edit: Tizy beat me to it :rotfl: