Update and advice needed please

poppyg_2

I posted this as a reply to my original thread but thought it'd be better to start a new one!!

Hi All

Just wanted to give you a quick update and well ask for a bit more advice really

I have told my employer that I want to come out of the pension scheme, I worked out after tax that it'll give me an additional £70 per month to throw at my debts

I phoned Payplan to see what they suggested. They said that a DMP would not be a good idea because with the joint £30k debt, a) although it's unsecured with it being tied in with the mortgage the company would put a charging order on the house (think that's what it was called, am not sure what that means) b) could chase my partner for payments which wouldn't be fair as it's my debt.

Anyway she has said that as both the other debts (loan and overdraft) are with Natwest who I bank with and are in just my name my best bet would be to open a new current account (which I have now done with Lloyds) and then obviously transfer all my dds and get wages paid into this account and then write to Natwest with my SOA and offer reduced payments and ask them to freeze interest. They have sent me a pack with a template letter to send.

So anyway - advice needed please:

1. What do people think about this advice?
2. Are Natwest open to this sort of thing in general, anyone had any experience with them? They're charging me £50 interest on OD at the moment and it's crippling me, means I just can't get the OD down :eek:
3. I also have a joint 'bills' account with Natwest that I share with OH, can they try to take money out of this to pay for my debts or am I best swapping this account to Lloyds as well?
4. Just any other advice really I guess

I have put a few things up for sale on ebay so hopefully they'll sell

Also been sticking to a meal plan as best we can (still got a bit to learn with this) and have been buying budget brands instead of the usual stuff

Any advice greatly appreciated, this whole thing is really getting to me

x

HHH_2

natwest could possibly raid your joint account so it would be best to keep everything in your Lloyds account to be on the safe side. not sure I understand why payplan doesnt think it a good idea they run you a dmp as it looks like you are about to do that anyway??? try giving cccs a call and see what they have to say, it may be the same as payplan but it cant do any harm to get another opinion.

kel123_2

Hi poppyg

sorry I am a little confused after reading your post a number of times.

Are you saying that with your combined income you can afford the required payments therefore if you took it on your income only you would not and that is why payplan has rejected your dmp?

poppyg_2

Payplan have said I can't do a DMP because:

The £30k loan I have was taken out at the same time as mortgage and although it's unsecured they'd put a charging order on the house. This loan is in joint names but it's actually for my debt only and they are saying the company would start chasing my OH for the debt if I tried to reduce payment so they said this one should be classed as a priority payment (the loan is over same length of mortgage)

Then they said I couldn't do a DMP for the other debts that are just mine, a £4.5k loan and £3.5k OD because they're just with the one creditor - would CCCS say the same thing or do they work differently?

Payplan said Natwest couldn't chase my partner for these 2 debts as they're solely in my name. I asked if Natwest would be willing to freeze interest knowing I have a loan with another provider and they said because I'd be protecting it from becoming a secured debt then yes - does that make sense? I find it all very confusing

I wish when I had the initial debt I'd got myself onto a DMP but I was given advice that changing mortgage provider and getting a loan with it would be my best option

poppyg_2

Apparently Payplan say you need to have 3 different creditors to do a DMP with them so they say I'm best writing to them direct using their template

poppyg_2

HHH, do you think it's still worth my getting a second opinion from the CCCS?

kel123_2

Ok I think I have the drift

Mortgage and further advance taken out at the same time representing a first and second charge on the property, therefore it is a secured loan. This makes them priority payments.

When I took out my DMP 18 months ago I/we had to owe 15K+ across 3 or more creditors (cannot comment about today) So yes back then you wouldn't qualify on money owing and number of creditors.

You didn't answer my question (up to you) regarding income. Because I would have thought that this is also a factor because when you complete your soa (i & e) surely you have to put it down because of joint ownership and mariage unless you can prove that your getting devorced and therefore can substantiate lower payments

HHH_2

Hi, I think if you are not quite sure what and why then it couldnt do any harm to get another professional opinion, and I would recommend cccs as they have been very clear with me over my situation. other than that I have no idea im afraid but hopefully someone else will come along who is a lot more knowledgeable than me. good luck.

poppyg_2

Kel, sorry didn't mean to ignore your question. Basically the debts are mine so surely it would only be my expenditure that needs to be taken into account when asking Natwest to freeze interest/reduce payments?

Payplan told me that when I write to Natwest with my soa I should just put down my income and the share of everything that I have to pay e.g. half mortgage, bills etc - is this right? The debts with Natwest are just in my name and it's me that needs to pay them as I ran up the debt. Payplan said the bank wouldn't be able to chase my partner for any of this debt as it's just in my name (we're not married but live together)

The debt I have with the mortgage company is an unsecured loan but apparently because it's the same company as the mortgage they can put a charging order on the property which would pretty much turn the loan into a secured debt so I should carry on with paying the full amount to this company, which is absolutely fine with me, it's just the Natwest ones I'm really struggling with

poppyg_2

Oh God I'm stressing now, I have seen another post just on here about someone (dannidoo) having problems with her overdraft as she doesn't use the bank account anymore and people have advised the bank would be more willing to negotiate the overdraft if she was still using it so now I don't know if I should swap or not??????? Help I'm really worried now don't know what to do

Should I ring Natwest and see what they say or is this a bad idea?

kel123_2

settle down and relax

There are bits I don't understand. Please correct me if i'm incorrect.

1. The mortgage is in joint names
2. The loan is in joint names. when you took it out you say it was unsecured but are you sure from what you've said I get the impression that it's secured on your property i.e second charge but for all intense and purposes is actually part of the first charge.

Now if i've got that impression then maybe payplan did also. I have a loan that runs along side my mortgage and is secured against the property but again it is part of the first charge.

Can I make a suggestion, I get the feeling that you do not like your right hand knowing what your left hand is doing and being independant you want it to stay that way so maybe it's time to forget that old fashioned principle. Ok i've read through it again and the mortgage is joint but the loan is your name only and it is tied in with your mortgage in hesance making it secured.
leaving you with a total debt of approx 8K which you cannot afford to pay.

At this point it may be beneficial to post your soa so it can be seen in black and white minus emotions that sometimes block what your trying to say. Sorry if i'm sounding thick but I cannot get my head around what you are saying.

P.s. never ring always write and insist they do the same your probably at the start of a long road and some times it's gona get hard to handle. When I first started I tried alsorts of things but eventually I had to conform