25K debt HSBC, 3K cash other bank

Diaga

Hello,
I wondered if someone could advise me.
I owe 25K to HSBC (because I am an idiot) but with another bank I have 3K lent to me by a relative for emergency purposes, which she now needs and which I plan to return.

Via National Debt Helpline I learned of a debt management plan in which a person can pay at least 100 a month until their debt gets paid off. I am interested in going this way but,

the problem is I began missing payments to HSBC while having the 3K in my Abbey account all along. Would that disqualify me from these debt management plans?How will my accounts / income be reviewed? Would HSBC have the power to look up any other account I might have with other banks?

Thanks.

Diaga

Bismarck

"Would HSBC have the power to look up any other account I might have with other banks?"

Pretty sure that's a no - they could check what your credit commitments were without actually being able to have the names of the providers but your "savings" are an unknown!

newlywed

When I started a DMP with CCCS I'm pretty sure they never asked about savings.

If the banks aren't "linked" in any way - like First Direct and HSBC are - then I think the most they can do is a credit search on you and credit balances don't show on that do they?

If the banks are linked, then they are able to "offset" your debt by taking your other money - which is why most people starting a DMP are advised to open a bank account with a bank they don't owe any money to

Diaga

Does this mean I can maintain and build up savings with another bank while paying off debts with HSBC?

I was afraid even if eventually i built up savings they would automatically take it away

I once paid soemthing with my Abbey account so they know it exists.

Would they ask to look at it?

newlywed

When on a DMP you are meant to save for emergencies, car tax, mot - you don't have any credit to fall back on so they expect you to plan and save a small monthly amount for car tax and repairs, house maintenance, emergencies.

newlywed

I have 3 online savings accounts - not much in them at the end of the month, as I use them more for budgeting, but I still have them and no-one has asked about them at all, or about my current account.