urgent advice needed please

caprichos

Hi.
My husband and I have separate bank accounts. I am the only earner as he had a stroke and now is unable to work.
I get my income and CB paid into my account and he get his DLA and CTC paid into his.
Most bills are on my name but he has two on his name.
Although a bit tight, I think we have enough money to cover all, however every month we seem to be playing the game of transferring money into each others accounts to cover bills.
So the first thing I want to do is to do a budget to see what is what. But my question is. Should we have a joint bank account? we both have poor credit scores but my husband is concerned that if mine improves and his does not the we are linked, although I cannot see mine improving in the very near future, but that is another story. I also thought that having a joint account might help us get control over finances and help both improving our credit record?
The other question is, if we don't go for joint bank account, can I set up a direct debit from my bank to pay those two bills on my husbands name without having to put them in my name? That way all bills come from one accout and the spending money come out of the other? I know we could open a new bank account in joint names and start afresh but I have an overdraft that cannot cover at the moment so that would become another separate debt?

Many thanks in advance

Tixy

Hi and welcome to the forum

Getting a joint bank account will create a financial association between you on your credit files (if you don't already have one from say a joint mortgage).

You say you both have poor credit scores - have you both missed payments on accounts in the past?

Yes you can set up a direct debit from a bank account in your name to pay off a bill/account in another person's name.

In terms of you saying you think you have enough money to cover everything - if you are struggling with this you may find it useful to complete a statement of affairs using a calculator like this - http://www.stoozing.com/calculator/soa.php, it will help you remember to budget for items that don't happen each month and then show if you have a surplus or shortfall.

caprichos

Thank you for your reply. Yes we do have a loan in both names so we have a link already? In that case a joint account won't make things any worse?
I am going to do a SO tonite as it will help to know where money goes as you say.
If we open a new bank account that would mean we will both leave old accounts with owning overdraft...hhow can we deal with that ?

Many thanks!!

Tixy

That is right a joint account won't make your credit files worse, if you already have a joint loan (assuming that loan is reported to the credit reference agencies).

In terms of moving to a new bank account you could set up a standing order to each of the overdraft accounts to gradually repay them.
There is a risk that at some point one or both of those accounts may have the overdraft recalled by the bank.
If your new account is with the same bank as either old account then there is also a risk of the bank offsetting money from your new account to pay the old account (they could only do this if you went over the agreed overdraft, or if they recalled the overdraft and you couldn't repay it in full).

When_the_going_gets_tough

Agree with Tixy - best to open a new account with a different bank that you don't have any association with. You can then see your overdrafts as separate debts to be paid down.

caprichos

ok so I guess we either keep our separate accounts and sort out all his direct debits from mine (as you said even though there are in his name he can use my account details to pay for them?) and keep spending money on his....
or open a joint account and have everything there....
Thank you again for everything. I must do this SOA to know what is what and I think I would go for a new joint account and set up standing orders to repay other banks.

This was most helpful.

Tixy

caprichos wrote: »

(as you said even though there are in his name he can use my account details to pay for them?)

You would need to set up the direct debits for his bills from your bank account. He couldn't set them up from your bank account.

caprichos

Thank you both Time ans when the going gets tough!!
I am scared the SEA may give me a bad surprise as if we are currently feeding of each other I have the feeling things are worse than I think but I need to get control regardless. Things are very tough at the moment with hubby being disabled and we have too young kids that deserve more....

Must sort things out for them if not for ourselves.

Thanks again

Tixy

Doing the statement of affairs for the first time is very scary, but worth it.

If it shows you cannot manage on your current income and outgoings then it would be worth posting the figures on here for some advice and suggestions on tackling it and alternative options for dealing with things.

Good luck!

Dobbibill

Hi Caprichos,

I didn't want to read 'n' run.

If you haven't already got it, here is the link for the SOA. With payments from benefits you may need to convert them to monthly amounts as AFAIK they are normally paid 4 weekly. (I may be wrong but best to check)

Also just another idea for you to think about........

Use your account (the one with the OD) for all bills.
Calculate your monthly bills, add a small amount over and above that to start paying off the OD, even if it is only £10 a month.

This way your OD account will be used regularly, so the bank won't think you have abandoned the debt and start to come down as it is being accounted for in your budget.

You set up another spending account for yourself.

You DH will still have his spending account.

As I say this is just another idea that you may find works for you.

I do wish you all the best though, in what is obviously, a challenging time.

DB

Sazzie23

Good practical advice from Dobbi.

I'd suggest a spending diary for 2 weeks accounting for every penny might help understand more about where your money is going. Post the SOA anyway as the sooner you start, the sooner you can regain control. And if £10 towards the OD seems like a massive amount, aim for £5 or £2, over a year that's £60 or £25 less that you'd owe.