Overdraft Debt & Another Bank Account Both with Halifax

PinkPeach

Hi, my fiancee owes approx £500 to Halifax from an overdraft and £500 on his Halifax cc, (along with money to other creditors).

At the weekend he cancelled his DMP arrangement with Debt Line as they were useless and he's now going to try and sort out his own DMP with his creditors. (His Halifax cc was never included in the Debt Line plan and he has always paid just over the minimum on this himself each month).

We have a basic bank account with Halifax which we use each month for our utility bills and other direct debits to come out of (including our mortgage). I'm concerned that if Halifax don't accept his offer of payment each month for the overdraft that they could take the money from our joint bank account, which I've heard warnings of on MSE before. Would you advise that before he sends Halifax his own DMP proposal that I switch our direct debits to my own bank account with Halifax so that his name isn't tied into this? Our mortgage payment sitting in the bank alone would cover his overdraft debt but if they took this we'd have no way of paying the mortgage company as we have no savings and obviously I don't want to end up in trouble.

Thanks in advance

Marisco

Yes they could take the money, its called offsetting. What is usually recommended is to open an account in a bank that has nothing to do with Halifax (there is a list of connected banks and financial products on a thread here) get his wages paid into it, then send in his DMP to Halifax. You could get all the DD's etc into your bank, but if his wages still go into Halifax, they can still grab it!!:mad:

PinkPeach

Sorry, I forgot to mention that both our wages are paid into my own bank account with Halifax. Each month I then transfer the total cost of our bills into our joint basic Halifax account.

I'd prefer if possible not to have to ask him to get his wages paid into another bank account with someone else if we set one up, as he finds the whole notion of his debts so stressful that he literally finds it hard to talk about. I'm pleased that he's trying to sort things out but although his debts quite small (approx £2500 in total), as he doesnt' earn very much the thought of trying to repay them sometimes stops him sleeping very well at night. Therefore, do you think it's ok to continue to have his wages paid into my own account? I'm presuming Halifax aren't allowed to touch that money if it's in my name?

winner12

Hi pink peach he does need to open a new account else where offsetting is a nightmare happened to me a few times you seem to be very supportive taking the first steps will make him feel more confident to deal with the debt

PinkPeach

I've just phoned the utilities companies to change our direct debits to a Halifax account just in my name. Will then close the joint account so that there is no link to me. Thanks for your help