Help on loans

sourcrates

Graham1982 said:

Hello everyone:

This is a question and NOT advice. Could a combination of the two be done i.e. change bank accounts BUT put a little into the bank account each month (the amount you could comfortably afford to pay the debt) then if they use this in a set off, it reduces the overall debt once sold and if they don't set it off then you can use it to reduce the debt manually?

Thanks

Graham

PS Again I assume someone will come along and say this is a bad idea and provide a legitimate reason as to why, alas I repeat, this is a question and I am not offering advice.

Its not a good idea for one simple reason, if the OP were in there OD, and it sounds as though they are in this case, obviously they would be racking up charges every month, some OD charges can be quite high, so its likely any money you could afford to put into that account would be swallowed up by the charges.

Also the charges do not stop until an account defaults, with bank accounts, that can take a good while, so your basically throwing away your money, lining the banks pockets, and not reducing any of your debt whatsoever.

Plus, its not uncommon for companies to close associated bank accounts if a customers loan accounts have already defaulted.

Much simpler to store any surplus cash you do have, in an account that cannot be compromised, so you retain control over how and when it is used.

EssexHebridean

"Disposable income" as far as a bank are concerned, and actual "surplus" income after all your commitments have been met, may be two different things. Do your own SOA (Statement of Affairs) via the link in the announcement post at the top of the board, and that will then tell you have much "spare" money you should have. From that, you can work out whether you do actually have that amount, and then if not, it's time for a spending diary to work out where things are going wrong. 

The above is useful to do whether you have debt or not, in fact. It focuses the mind on any frittering that may be occurring, that you may wish to deal with.