We are about to cancel the direct debits for our credit cards, but I have a few questions.....(her goes!)
We have a joint bank account, we have both opened separate accounts with the Co-Op, however we have not started to use them yet. Our salary gets paid into the joint HSBC account, with whom we have our mortgage. I also have a credit card with them and our overdraft which we have been living off is with them. I don't know what to do first, will HSBC take the money from the joint account for the credit card payment even if I cancel the direct debit?. I am going to ask my employer and my husband ask his to pay our next months salary into our separate co-op accounts and then transfer the direct debits for the mortgage, utilities etc to the new accounts. I hope this makes sense but I really am not sure of the best way to do it and need some guidance!
Thanks
From my my experience, and from all the information I have been told via Melanie and her company (she is my IP) if you have a debt with a bank they will take any funds going into that account to clear their debt regardless of whether you cancel dd's or not. I had an account with Lloyds and a credit card with them as well as my mortgage (I used the LLoyds as my bill paying account). I moved the whole lot over to the Halifax where my money gets paid in. I then closed the Lloyds account down. So it is really important to make sure your wages get paid into an account that has nothing to do with your debt - ie your co-op account. I don't know how much your o/draft is and whether you can clear that or that is going to go in the IVA pot - if it is small and you are able to clear quickly then I would clear it and shut the account down. Leaving the credit card to go on your IVA if that is the route you are taking. But I am sure either Melanie, David or one of the other experts on the site will be able to confirm this bit. But defo on the moving your wages over. I have sorted all mine out over the last two weeks as have just cancelled all my d.d's etc also. It will give you peace of mind to know your money is safe.
Good Luck
Poppyfairy [:)]
There's an old zen saying 'Only an empty bowl can be filled'. It means that the moment you think you have nothing left is the moment when growth and progress become inevitable. Everytime you see an empty bowl, think of the potential.
Hi there -Are you in an IVA already or proposing one? If so, arrange for your salaries etc to go into your new accounts ASAP. Even if you cancel the DD, HSBC will still take their payments and add charges too. Don't worry though as these will all included in the IVA.
It does seem daunting at the beginning but post any queires and we'll try and answer.
Yes, HSBC will continue to take payments from your account up to the date of the meeting. If they are anything like they were with us, they will take it out, make you overdrawn, and then put it back again.
As Julie says, don't worry about it - it will be included in your IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Give me a ring at the office to discuss this indeep if you want to - but I would get your direct debits and standing orders transferred to your new bank account as soon as your salaries are paid in.
Thanks Melanie,
Is that the standing orders and direct debits for utility bills etc(not credit cards)? I am too late for this months salary to go into my new bank account but it should go into the new account next month.
Hi
if HSBC Arent aware of you proposing the IVA and think tthat you are running the account as normal then I doubt they would take payments from you, I think they will continue to issue statements for the loan mortgage and credit cards.
If I was you I would transsfer the money from HSBC ot Coop immediatly when your wages hit, most bank use the fast payments systems so it should be instant
Yes - just to cover your essential payments. If you then wish to make pro-rata token payments to your creditors, feel free, but it is unlikely to stop them calling and writing to you.
HSBC will take the payments from your account whether or not they are aware that you are doing an IVA.
We were runing our account as normal (apart from overdraft being maxed out) and every month they took the loan payment out, then put it back and charged us for it.
They continued to do this even when we had changed bank accounts.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
