pay plan info needed

bobsky_2

Hi, I have been advised Lloyds TSB to seek advise from payplan (dmp). As I am overcommitted I am still looking to become debt free.

Anyway I have a few questions:

As most of my debt is with Lloyds Tsb circa 11k, the bank have said that I will not receive a default/ccj from them. Is this true?

Also as the above debt is with LLoyds, will I have to close (swap) my bank account?

If I dont have to close bank account, will they still provide me with an overdraft facility.

Will my wife be affected as we hold a Joint account with Lloyds too.

If they dont issue a default notice/ccj what (as they suggested Payplan) then what will my Cedit profile be like?

hope these q's make sense.

:rotfl::rotfl:

ukjs1976

Hello bobsky- If i was you I would contact a not-for-profit debt management organisation i.e. payplan or cccs and tell them everything to get the facts on where you and your wife stand and the options available to get things sorted.

Discussing the situation and getting options is of course completely confidential... it gives you the facts and choices available from people who know the ins and outs of the rules, so you can choose what works for you... it's also free.

p.s. I say this as this is what I did.... and am very glad I did.

fatbelly

bobsky wrote: »

As most of my debt is with Lloyds Tsb circa 11k, the bank have said that I will not receive a default/ccj from them. Is this true?

Also as the above debt is with LLoyds, will I have to close (swap) my bank account?

If I dont have to close bank account, will they still provide me with an overdraft facility.

Will my wife be affected as we hold a Joint account with Lloyds too.

If they dont issue a default notice/ccj what (as they suggested Payplan) then what will my Cedit profile be like?

On a dmp you pay less than the contractual amount and can expect to get a default notice. There are plenty of stories on this board from those who have received a ccj while on a dmp.

We recommend moving your bank account to a provider with whom you do not have debts. This avoids 'setting off'

With joint financial products, your wife's credit record will also be affected.

On the positive side Lloyds can be persuaded to freeze interest, stop charges and do not often take court action.

podperson

Since you are struggling with your current payments a dmp would almost certainly have you paying less to your creditors a month. This means it is highly likely that you will get a default from them, as you will not be making the 'agreed' payments, whether they choose to take it as far as a ccj depends on the individual creditor.
I would definately suggest getting a new basic bank elsewhere. While Lloyds might be being nice to you at the moment, once they start getting reduced payments they may decide to take money from your bank account to pay towards the loan/cc etc. This is called off-setting and unfortunately if you are banked with them then nothing you can do against this.
Also as far as I am aware the overdraft would be included as a debt in the dmp so could no longer by used.
Regarding the joint account if it is also with Lloyds then would suggest moving it or see if you can transfer just into your wife's name. Unfortunately this will affect your credit rating and if this is the only joint thing you have with her then might be best getting rid of or taking out of joint names so it doesn't affect hers as well.

NorthernLas

Bob - There are several places that you can get advice from. Although your bank suggested PayPlan, they are a company (even thought they provide free DMP) there are others who give un-biased advice. See the link for phone numbers and websites https://forums.moneysavingexpert.com/discussion/2077631

CCCS have an on-line debt tool that you put your firgures from your SOA in and it gives you suggestions. NDL have a self-help pack. You can talk to them by telephone or you can speak with people face to face at the CAB or CAP.

bobsky_2

do you know what the min payment will be for cccs/payplan. basically I can only afford £50.00 per month

Pott5y

Bobsky,

Payplan will only accept from you what you can afford. They will ask you to provide an income and expenditure form and then will work through that with you. You then pay them the agreed amount every month and they send it off to the creditors on your behalf.

I would also follow the advise earlier in this post about getting another basic bank account set up as soon as possible and start getting all payments made in to the new account.

Hannah_10 has started a list on the DFW forum which lists the banks which are linked so find one which isn't linked to Lloyds.
https://forums.moneysavingexpert.com/discussion/2636953

I think the Co-op cashminder or Natwest step account are pretty good.