StepChange brilliant but still one niggle

rubyinthesky

Long story short, I came to the realisation this month that I could no longer service the £30k credit card/personal loan debt that I'd got myself into. Husband and I were in the verge of separating before I called StepChange today. I'd become self employed in October. 2013 and my debt has been slowly growing since.

I'm so relieved after speaking to them. They've decided I have £100 over each month to put towards my repayments, rather than the £600 I have been paying. I've set wheels I motion to open basic bank account, told my bank, as I had a personal loan with the bank and the bank say I've got 60 days before they withdraw the account. I've cancelled all DDs and phoned some of the cc companies, but not all of them. Most were very understanding.

My one concern is that I have a business bank account with Santander, and a personal credit card debt of just under £5k with them. The advisor says that as the credit card is in my name and the business bank account in my business name, they are two separate entities. (There is no debt on the business). The statement I get is addressed to the business but the debit card has my name on it. Also, when I log in to Santander business account I also have the credit card on that page.

Really worried that this might be a problem. I've just got to the point this month that I might be able to take a very small wage. I'm really worried that this will affect my business and it's my way out of this debt. I'll be stuffed if I have to get another bank account now for the business, as I've already done the damage today to my credit file. I also don't have many banks that I don't owe money to. And I'm a franchise, so don't want to have to change banks either as this will raise a red flag to Head Office.

Can anyone reassure me? I've gone from feeling so relieved to starting to worry again

rubyinthesky

Think it's a DMP?

cc4rhu

I think you'll be fine in this situation. Stepchange are usually pretty good in their advice.

sourcrates

I would think, that because your business account is obviously in your business name, you should be ok, depends if the bank wants to be a badass with you or not, I take it the creditcard debt is included in your DMP yes ? I think as long as you service the business account as you should and stay within your limits, whetever they are, you should be fine, but ultimately it depends on the attitude the bank takes with you, hope that's helpful.

loveka

Phone business debt advice line to be sure- I know you have no debt in the business, but they would know if the 2 accounts could be linked.


But as others have said the advice from Stepchange is probably sound.


Well done for the DMP.x

rubyinthesky

Thanks! I will do. Just worried because when I log on it's all through Business Banking and I can see the Business Account and Credit Card on the same page, and I'm unable to log on through Personal Banking. Can't get through to Santander until Monday evening now though, so I'll carry on worrying until then I'm sure!

Second problem is Very, who said that they'll be charging late payment fee if I don't pay by 31/3/14 the £13.50 minimum payment, even though It told them I was going through a DMP with StepChange. They said they can't do anything there and I need to speak to NCO Europe. Can see that debt growing

sourcrates

rubyinthesky wrote: »

Second problem is Very, who said that they'll be charging late payment fee if I don't pay by 31/3/14 the £13.50 minimum payment, even though It told them I was going through a DMP with StepChange. They said they can't do anything there and I need to speak to NCO Europe. Can see that debt growing

Catalogues wont accept lower payments or stop charges as a rule, you usually have to wait until they sell the debt on to a DCA before this happens.

rubyinthesky

Should I pay it off with a credit card, or is that just totally immoral?? I feel that it's wrong but I have one last chance to do this before I speak to MBNA on Monday. The amount is £370 I think.