Self managed DMP help

Woolywelsh

Clothes bill could be low! We Don't buy alot for ourselves lately. Just school uniforms and odd pair off trainers and odd top here and there. 
Shopping comes to around £100-£130 per week. Work meals included yes. The kids have all there meals in the week with the childminder so that might be why 

Woolywelsh

Just on another subject. What is the reason to change banks. Let's say Im in credit on my current account. Surely a creditor within same banking group can not take money or view my statement from my account without permission.
What is the reason. I'm happy to change my bank that my wages go in to. But I also have a joint account we both pay into where all bills come from. This may be a pain to change.

Thanks

RAS

The basics are

If someone is not making their full payment on debts, and they have a joint account, it damages both parties' credit records by association. Disassociation protects the person with the better credit record.

And the right of off-setting means banks within the same group can take money from one bank account that is in credit to pay debts on another account, even with a different branding.

We see this less often these days but it is still a possibility. 

So if the existing account into which your salary is paid belongs both to a banking group to which you have other accounts to whom you owe money, and you've got a joint account, you really would be wise sort this out. You could end up with your partner's money being used to fund your debts, legally. 

And your partner unable to get good credit deals because of the link.

Woolywelsh

Thank you, I understand now. Let's say I took my name off the joint account. Would all the direct debits still function properly even if I set them up. If not I'll have to do a switch

RAS

What accounts do you pay out of the joint account? If you use switch, it will transfer everything, including accounts associated with creditors you want to default.

So check what's there. Someone used it a few months ago as she wanted the transfer bonus. Assuming she could then cancel the DDs for creditors. The creditors just re-instated them, some twice and it took time and grief to get the money she'd not budgeted back. 

Woolywelsh

Only the Barclaycard credit card  comes out of the joint. The rest come out my personal account. 

RAS

So, you need to start by moving the Barclaycard to your personal account. Then wait for the first payment to come out of that account before taking your name off the joint account?

Woolywelsh

Okay sounds like a plan. Do you think if I just take my name off the account the direct debits I set up for the other bills will still go through? Or would they fail as it's not actually my account now?

RAS

I just don't know as I've never had a joint account.

Woolywelsh

No problem.
As for stopping payments on the debt. Is it a case of cancelling the direct debit. Or when I move banks just transfer everything I need over manually and close the account the debts come out of?
What's best strategy.
Thanks for your time btw. I appreciate it