Bank account question Re: DMP

booandboo

Im reading through old posts here and learning alot....Thank you everyone! My plan is stopping debt payments to enter a DMP.

I have 2 joint accounts with hubby, both with overdrafts which I am trying to pay so as not to drag him into this (well as much as possible!).

We have one account where the mortgage and other household bills come out of and Ive almost paid that overdraft with a view to me coming off the account so he can still be paid his salary in there and pay all household bills from there.

However I was paying 3 of my credit card debts from that account but cancelled the Direct debits and reading old posts Im worried they can reinstate the DD? Is that the case? If so (I dread) I'll have to get hubby to open another account and I was hoping to avoid that!

sourcrates

Direct debt payments cannot be reinstated without your specific consent, I don`t know where you have read otherwise.

You only need a new bank account if:

You owe money to your current bank by way of an overdraft/loan or credit card, and you are entering debt management with those debts.

or, 

You have a joint account and you are afraid your bad credit will affect your partner.

Brie

Frankly I think it would be much more straight forward to make a clean break with him opening a new account to deal with all the bills.  And then he could take his name off the joint accounts so that you can deal with them.  Whether the bank will allow this while there's an overdraft to be paid will be up to them.  Perhaps if you are reducing the overdraft limit at the same time as you're paying it off it will be easier for them to accept.  

As I understand it if you have cancelled the DDs and told the creditors you have done so then they have no right to try to get a payment from there.  If they do then you should invoke the DD guarantee stating that both the bank and the creditor was informed of this being stopped at X date.   The other thing is that once the overdraft is paid perhaps simply close the account.  

And you should get a basic bank account set up at some point for your use.

Do make sure that with any new account (you or hubby) that it's with a different banking group.  So if one of your cards was with RBS don't open an account with NatWest.  

Rob5342

sourcrates said:

Direct debt payments cannot be reinstated without your specific consent, I don`t know where you have read otherwise.

I think that comes from cases where people have cancelled direct debits, done a switch, and then have those direct debits appear on their new account.

RAS

Any joint account with your spouse will adversely affect both party's credit records if either party fails to make contractual payments on any account in their sole name.

If you want to protect him, close them both. Or get them up to date and take the second name off.

fatbelly

I'm not sure whether you've cancelled the d/ds to nonpriority debts yet. I would suggest that you do, and that will help you to clear the joint debts more quickly.

Are the two overdrafts the only joint debts? No council tax or utility debts for instance.

I agree with moving towards having no joint accounts. However the mortgage will be joint and will create a financial link, so make sure he understands that this will impact his ability to get credit.

booandboo

Rob5342 said:

sourcrates said:

Direct debt payments cannot be reinstated without your specific consent, I don`t know where you have read otherwise.

I think that comes from cases where people have cancelled direct debits, done a switch, and then have those direct debits appear on their new account.

yes thats where I got that thought but I understand now that only relevant when switching accounts over.

booandboo

fatbelly said:

I'm not sure whether you've cancelled the d/ds to nonpriority debts yet. I would suggest that you do, and that will help you to clear the joint debts more quickly.

Are the two overdrafts the only joint debts? No council tax or utility debts for instance.

I agree with moving towards having no joint accounts. However the mortgage will be joint and will create a financial link, so make sure he understands that this will impact his ability to get credit.

Yes Ive cancelled all non priority DDs and my plan is to pay off the overdrafts asap so we can have separate accounts. All council tax, utilities etc are up to date thankfully