DMP … questions and help please

Jacksonc2114

fatbelly said:

So what's the advantage of consolidating the debt on to credit cards?

I thought you were going to pay the smaller ones with cash from your emergency fund that you are saving while you wait for defaults

Hopefully none of the debts that remain are connected to the bank who provides your bank account. If so, you need a new account

Ah yes so I have a CC and Loan with my bank nationwide who I also have my mortgage with 
I have a joint account with nationwide too so will this impact me ? 

I wasn’t sure if it was best to pay debts of with the funds saved whilst waiting for the default on the larger ones or save the funds for a lump payment or bargaining tool
as someone suggested … I’m not sure what way to go … I think the smaller ones are best cleared somehow either by consolidating or paying off as that way I’m assuming less defaults or does that not matter 

fatbelly

You're going to have multiple defaults whatever you do.

Ideally you should move away from Nationwide so they do not have the right of set-off.

It's not often used, and Nationwide are one of the better creditors, but prevention is better than cure

https://www.moneysavingexpert.com/banking/setting-off/

Jacksonc2114

fatbelly said:

You're going to have multiple defaults whatever you do.

Ideally you should move away from Nationwide so they do not have the right of set-off.

It's not often used, and Nationwide are one of the better creditors, but prevention is better than cure

https://www.moneysavingexpert.com/banking/setting-off/

Thanks 
I’ll have to think what’s right as moving banks for me personally isnt an issue but my partner with the joint account will be a nightmare … I was hoping I could do this all n have it working  for me before breaking the news to him 😢  

could I balance transfer  the nationwide credit card to my Barclaycard so I only have one loan with nationwide which I took for my car as it was better than finance at that time there’s only 2 yr left  then it’s only one debt with them …  I’m wanting to try and sort this the simplest way possible ( I know it’s my fault and I have to deal with it but i can’t cope with the stress of it all 

Rob5342

You need to tell him before starting really so he is on board with the approach you are taking. I was in a similar position with my wife not knowing, I told her before starting my DMP and I needed her help to make it work.

If you move debts together then it's more likely that a creditor will take legal action. It's only a very small risk that they will but why increase it for no gain? As I said above making the debts bigger will mean you will have to find more money for a settlement offer when a smaller amount might settle one of them.

I'd stop paying them all and leave them as they are, and concentrate on getting an emergency fund built up. When you are happy that you can get a sufficient emergency fund built up in the right time period then look at clearing some of the smaller ones before the dmp starts on the bigger ones. 

fatbelly

Can you take advantage of one of the sweetener offers before they disappear?

I.e. Move your joint account via a switching service to First Direct for £175 cash, 0% overdraft and 7% savings

Or

Tsb for £125 and £60 cashback

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/

Jacksonc2114

fatbelly said:

Can you take advantage of one of the sweetener offers before they disappear?

I.e. Move your joint account via a switching service to First Direct for £175 cash, 0% overdraft and 7% savings

Or

Tsb for £125 and £60 cashback

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/

Oh thank you I will look at that and see what’s what … I appreciate the advice .. I don’t want to jump in the deep end and sink I want to get it all clear know the options the plans the ifs buts and maybes and then get it right … I’m starting and that’s a start admitting my mess to my husband is the worst as I know he will be disappointed in me .. I’ll build the courage up 

fatbelly

You'll be able to tell him the problem and the solution.

You could even show him this thread