Starting to miss payments

lillypoo

Hi , morning all

Wish I could have come up with a catchier discussion title but my heads scrambled.

After a long long struggle with debt I am now getting letters about persistent debt from my two big credit cards. The recent interest increase has made it worse. So to cut a long story short, I've done the online stuff with SC who recommended mortgaging the house  first but also said a dmp is suitable.

Thanks to all the info on here, I will be opening up a new bank account this week and maybe missing first cc payments next month.

So. ..questions:

I read that defaults are now taking longer to happen. Does anyone  have any recent experience with lloyds bank or m&s bank (hsbc group) ? 

My current car is on Ford options, the agreement runs out next autumn and I either have to fibd £7000 to give them if I want to keep it ( not gonna happen) , or just hand the car back. 
So I am hoping I can build up enough in my emergency fund to be able to get an older cheaper vehicle when this one goes back.

Secondly.

I looked at applying for a new bank account last night. Both online applications asked for details of my existing current account and my employers details 

Are they likely to contact my employer? And if they  see that I have a huge overdraft which I am using sll of ...are they really going to accept me?

I am currently only in debt to lloyds and m&s so I'd looked at tsb snd coop banks. If anyone has a better  recommendation I'd be grateful

I think that's it for now ...spending most of my sleepless nights reading the boards has answered most of my questions but I'm sure I'll think of more

Thanks in advance

MattMattMattUK

lillypoo said:

I looked at applying for a new bank account last night. Both online applications asked for details of my existing current account and my employers details 

Are they likely to contact my employer? And if they  see that I have a huge overdraft which I am using sll of ...are they really going to accept me?

I will leave others with more knowledge to answer the rest but on the above points, I have never had a bank contact my employer and when in a management position of SMEs I have never had a bank contact me about an employee, it might happen, but I have never heard of it actually happening. The overdraft probably will probably not be an issue either, provided you are not applying for another overdraft, eg. you just want a current account. 

enthusiasticsaver

First of all I am completely surprised SC said mortgaging the house was one suggestion but please don’t do that. Converting unsecured debt to secured is never an option that works out well alongside consolidating debt.

I think your plan is sound. Opening up a new bank account and just paying priority bills and defaulting on the cards is normally the path forward if you intend going the DMP route either via SC or self managed. Overdrafts are expensive so if your main account is solidly into one then that can also be included. Doing an soa is a good first step. There is a link in my signature. 

The bank won’t contact your employer but they will do a credit search.  Are you applying for just a basic account with no overdraft facilities? As you say any bank you don’t owe money to is ok. 

RAS

Make sure you open a new basic bank account. They don't do credit search but they will do identity checks. Card, DDs, on-line banking etc.

Mine is with Co-op. I would give you advance warning that they ask you to provide a lot of security details, which they will ask at random to confirm your identity either on-line or in branch. These may sound simple but remembering whether you described your first school as (location)  or (location) JMI or Junior Mixed Infants can be a pain when you only get asked that question every 6 months. They will want a memorable name and a security number. It's a lot easier if they warn you that there are half a dozen of these questions before you set it up.

It's probably the same everywhere.

fatbelly

The Co-Op is not a bad option. I usually end up talking to a friendly Manc when I need to engage. The whole info on BBAs is here

https://www.moneyhelper.org.uk/en/everyday-money/banking/basic-bank-accounts

Like the above I do worry about stepchange recommending converting unsecured debt to secured. It was stepchange and not a clone, I hope?

sourcrates

Monzo is also a good choice, takes on average 60 seconds to approve, its a basic account with no borrowing, although they do provide the option, but you can choose from the outset which account you want.

When you search for Stepchange, a lot of sites with similar names are pushed to the top of the list, most are clones, debt management companies looking to copy their style and hopefully sell you something, so be aware of that.

lillypoo

Thanks everyone. I've applied to the coop online. It says I'll hear within 5 days.

Perhaps I've misunderstood stepchange. I've only done the steps online  not spoken to anyone yet. But my recommended solution comes up as FINANCIAL SOLUTIONS REFERRAL. The blurb says "you may be able to clear your debt more quickly by using money tied up in your home or by changing your mortgage".
Reading on further it mentions residential mortgages  , retirement mortgages and equity release!

It then lists a DMP as also suitable so that's the plan.

It's definitely the real SC website. 

sourcrates

Just a generic list of options they have given you then.

Not a detailed personal recommendation.

fatbelly

It's called 'robo-advice'

It's crap.

Sly72

lillypoo said:

Hi , morning all

Wish I could have come up with a catchier discussion title but my heads scrambled.

After a long long struggle with debt I am now getting letters about persistent debt from my two big credit cards. The recent interest increase has made it worse. So to cut a long story short, I've done the online stuff with SC who recommended mortgaging the house  first but also said a dmp is suitable.

Thanks to all the info on here, I will be opening up a new bank account this week and maybe missing first cc payments next month.

So. ..questions:

I read that defaults are now taking longer to happen. Does anyone  have any recent experience with lloyds bank or m&s bank (hsbc group) ? 

My current car is on Ford options, the agreement runs out next autumn and I either have to fibd £7000 to give them if I want to keep it ( not gonna happen) , or just hand the car back. 
So I am hoping I can build up enough in my emergency fund to be able to get an older cheaper vehicle when this one goes back.

Secondly.

I looked at applying for a new bank account last night. Both online applications asked for details of my existing current account and my employers details 

Are they likely to contact my employer? And if they  see that I have a huge overdraft which I am using sll of ...are they really going to accept me?

I am currently only in debt to lloyds and m&s so I'd looked at tsb snd coop banks. If anyone has a better  recommendation I'd be grateful

I think that's it for now ...spending most of my sleepless nights reading the boards has answered most of my questions but I'm sure I'll think of more

Thanks in advance

I stopped making payments (7 Debts) in October 22 around end of Feb had letters to say if I don't pay outstanding amount or make contact within 28 days of letter date they will default me. So far 2 defaults are showing on credit report and have requested CCA so no payment agreements until that's resolved, other 5 waiting for default confirmation then CCA requests.

lillypoo

Sly72 said:

lillypoo said:

Hi , morning all

Wish I could have come up with a catchier discussion title but my heads scrambled.

After a long long struggle with debt I am now getting letters about persistent debt from my two big credit cards. The recent interest increase has made it worse. So to cut a long story short, I've done the online stuff with SC who recommended mortgaging the house  first but also said a dmp is suitable.

Thanks to all the info on here, I will be opening up a new bank account this week and maybe missing first cc payments next month.

So. ..questions:

I read that defaults are now taking longer to happen. Does anyone  have any recent experience with lloyds bank or m&s bank (hsbc group) ? 

My current car is on Ford options, the agreement runs out next autumn and I either have to fibd £7000 to give them if I want to keep it ( not gonna happen) , or just hand the car back. 
So I am hoping I can build up enough in my emergency fund to be able to get an older cheaper vehicle when this one goes back.

Secondly.

I looked at applying for a new bank account last night. Both online applications asked for details of my existing current account and my employers details 

Are they likely to contact my employer? And if they  see that I have a huge overdraft which I am using sll of ...are they really going to accept me?

I am currently only in debt to lloyds and m&s so I'd looked at tsb snd coop banks. If anyone has a better  recommendation I'd be grateful

I think that's it for now ...spending most of my sleepless nights reading the boards has answered most of my questions but I'm sure I'll think of more

Thanks in advance

I stopped making payments (7 Debts) in October 22 around end of Feb had letters to say if I don't pay outstanding amount or make contact within 28 days of letter date they will default me. So far 2 defaults are showing on credit report and have requested CCA so no payment agreements until that's resolved, other 5 waiting for default confirmation then CCA requests.

Thanks sly

Sorry to ask a silly question but what does CCA stand for?