New and confused!!!

becz34

Hi all,
my partner and i have had out LBM (i think thats it!!) and are currently working though our debts etc. Just a quick question if any of you know. We have our mortgage, bank account and personal loan with the same provider (HSBC). If we start a debt management plan, what happens to the mortgage? if we are paying the loan and overdraft at very reduced payments can they then stop our mortgage?
Sorry, bit confusing!!! Never had to do anything like this and im a bit lost and confused.
Thank you in advance for any help

happy_bunny_2

Mortgage should be a priority payment, they can't just stop it unless you break the agreement.

Best get a bank account with an unlinked bank, so they can't steal (offset) your wages to pay the loan etc. I would do this before starting the DMP. Make sure the account you get is unlinked to all your creditors.

Good luck.

HB

AlexLK

Do you need to go into a debt management plan? Do you have other debts (credit cards, HP etc.)?

Sazzie23

Hi Becz

as above, do you need a DMP, its not something to take on lightly.
If you are going down the DMP route, make sure its with someone who doesn't charge for the plan administration. They should be able to give you good advice about what to do regards your loan/mortgage etc being with same bank.

Strongly recommend you get a new bank account as banks do take your money hostage.

Remember if you are in a DMP you will not be able to get any more credit (at any sensible APR), effectively unlikely to be able to mortgage or re-mortgage, no car loan, no credit for paying insurance etc. Make sure you know what you are taking on before you start.

I am glad I started my DMP ( 6 months in now), but wished I'd been able to sort a couple of things better before I started ...but hey that's life :-)

becz34

morning.
sorry for not re posting sooner. Laptop was pinched by my daughter!!!
Thanks guys for your replies. A DMP is not something we have rushed into. We have struggled for months and can see no other managable way to get on top of things.
I have opened another bank account to pay wages and bills in and out of. I just had this cold sweat moment in the middle of the night thinking the bank could say you owe us money, give us the house. The mortgage is completely up to date with, as are all the priority bills. Its simply the personal credit that has become completely out of control.
Im sure when i get the hang of all the acronyms and have everything written down i shall post my journey on here as you all seem really supportive and encouraging.

Thank you all

becz34

Oooo Sazzie23, what kind of things do you wish you had sorted? Sorry, dont mean to be nosy. Just wondering if they are things i should also be thinking about.

AlexLK

becz: Have you done an SOA (Statement of Affairs)? If so, post it up, you would be very surprised just what savings others will be able to see that you can't.

Also, it could be worth you looking through your personal belongings and seeing if you ave anything you don't really want / need and saying goodbye to.

becz34

AlexLK. In the process of doing a SOA. not the easiest thing to do with a tired 2 year old around!!!!
Mission for today is to gather as many unused belongings and get them on ebay!!! gonna be a long day!!!