Your views and questions.

Moderators: TalbotWoods, JaneClack

By Aks1979
#472889 Hello

Could anyone please offer any insight into my current situation.

I am struggling to pay my debts which have grown while my income has reduced. I have been advised a Debt management plan would be best. 18k of unsecured debt most on 30% Apr and my income is 15k per year.

I run a small business of which I am a partner, the partnership bank account has a overdraft facility of which is 7k in the red.

If I look to freeze interest with my personal debt and set up a dmp to repay what I can / when I can. Will the buisness partnership account credit be effected?

I am not looking to include any buisness debt in my personal Dmp. My personal debt is not with the buisness bank (barclays) other than a personal barclaycard. I guess because of this link I should continue to service the barclaycard as per agreement.

What I worry about is if I set up a dmp to sort personal debt, the buisness bank will suddenly withdraw the buisness partnership credit facility and demand the overdraft is repayed instantly. I am not interested in having long-term buisness credit but it will take time to clear the overdraft.

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By JaneClack
#472891 You say your business account is at Barclays and I presume your personal is elsewhere. Your Barclaycard is in your own name - not the partnership's - and there seems to be a Chinese wall between Barclaycard and Barclays accounts anyway so they do not seem to exercise offset.
You may not want long term credit with your business but what about your partner? Why do you want to exclude this debt - are you still trading? It would be very unwise to keep a personal Barclaycard in a DMP especially with a balance on it as it is tempting to use.
Please discuss this with your DMP advisor before moving any further.