New To Cancelling D/D and Already Made Mistake - HELP !

oneofnine

Hi All , I am so glad to have found this thread .We are a couple in our late 60's .We've always paid our debt but in 2010 I had to leave the NHS to become a carer for my husband .That was the end of my career and the start  of our credit card debt .Without running them up , we couldn't have survived .We went from from good salaries to benefits .We now live in a cheap rented flat for our age group .This year we reached rock bottom .Our cards were maxed out - £30,000 each , and then we got demands to increase the amounts which we had to borrow to do (from family) .A thing called Purchase Interest kept being added to each statement of our cards , which was adding hundreds .We realised we couldn't keep this up .Yesterday , we cancelled our D/D's on our credit cards .I've just read you shouldn't use a switcher when you open up a new bank account , but belatedly .I have already agreed for Santander to do the switch for us .
I am trying follow what we should do .I have learned to stay away from debt help agencies , cancel direct debits on credit cards (we have no store cards or loans ) . And then we sit tight until the credit cards go into default ? is that right ? we ignore all letters / phone calls etc , until we are in default and our card debt is sold on then negotiate a payment plan with them ? sorry , I am 70 soon .This is all new to me .I really need someone with patience to put the simple steps laid out .Many thanks all x

RAS

With respect to the immediate issue, can you cancel the Santander account, or cancel the the switch? Contact them as soon as possible this morning.

If not, you'll have to arrange a third basic account (no credit check) and get your income paid in then manually transfer the essential DDs.

Next off do a Statement of Affairs, because you are going to have to live within your means going forward. Read the NEW Posters sticky by sourcrates at the top of the first page. That includes a link in their signature to the stoozing SOA.

Format for MSE and post here.

oneofnine

Stoozing SOA ?

RAS

Statement of Affairs/budget.

Go the the thread to which I referred, at the top of the page. It's written by sourcrates. Look at their signature. It refers to the SOA and links to the one on www.stoozing.co.uk. 

oneofnine

thanks RAS !

sourcrates

You only need a new bank account if the current one you hold is with one of your creditors or a lender in the same banking group, if its not, then your old account can still be used.

Regarding the switch, if you cancelled the DD`s prior to switching, then they should not be transferred over, however you can check with your new bank if they are still active or not, even if payment is taken by DD from the new account, you can still ask your bank to reverse the payment under the direct debt guarantee, so you will not lose any money here.

The DD can then be cancelled either manually via your online banking, or by contacting the new bank.

oneofnine

Hello , thank you for this .Yes 2 of my debts are with the banks credit cards .I cancelled the D/D before I changed banks - which is still being processed .We are just sitting tight now , doing nothing and will wait for them to default .

sourcrates

oneofnine said:

Hello , thank you for this .Yes 2 of my debts are with the banks credit cards .I cancelled the D/D before I changed banks - which is still being processed .We are just sitting tight now , doing nothing and will wait for them to default .

Ah, OK, that`s fine.

I`d just like to assure you that nothing bad will happen from all of this, all high street banks follow a very similar collection process, you may actually be underwhelmed by the lack of contact you get from them.

Banks tend to write every couple of months, they may also try to call you, its best to stay radio silent, because if you do engage, they will try to put you into an arrangement straight away, which won`t stop interest being charged permanently, and will prolong the time the debt shows on your credit file.

Anything you are unsure of, you only have to ask on this thread.

oneofnine

Thank you so much .Obviously I am worried .My husband has never worked since we met 20 years ago as he has Aspergers Syndrome and suffers with chronic depression .He has blacked out the downstairs window as he thinks "bad people " will come to the flat and pester us .I'm not at all worried about getting a bad credit report ,I don't care if it always bad .We just can't cope with this level of debt anymore .If we have to have a few months of hanging up the phone, putting letters in the bin and having no interaction if someone does come calling , then it's a small price to pay in the long run .It's helpful knowing this site and people like you are here , as I haven't got a clue about things things like this ! 

dawnybabes

If you’ve no assets and your age have you thought about going bankrupt ? 

oneofnine

Hi Dawnybabes , no ,we haven't .Is that different ?I'm afraid I'm not well up on it .