Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By Sandy
#3547 Hi I have a lot of debt which I have been trying to pay but no matter how many hours work its not enough. I have put my house up for sale in the hope that I will sell it and be able to pay off all my debts at last! In the meantime, my creditors are demanding payments which I cant make so I have been thinking of using the Payplan to resolve this. My problem is I have a bank loan with Barclays and am up to my limit on my overdraft. If I use Payplan, will the bank demand I pay the overdraft and freeze my account? I have been thinking of opening another account elsewhere so that I can pay my earnings in (self-employed) and then arrange to pay debts from there. At the moment I am struggling every week to meet payments and have enough for food etc., my son does help me thank god, but cant keep me. Any advice would be a great help. [/b]
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By JaneClack
#3548 Yes, they will. The bank can exercise the rule of offset. This means they can take out the loan payment in full and recall your overdraft facility as these are repayable on demand.

The positive side is that when you have opened a new bank account YOU not the bank will be in charge of your money!

Talk to Payplan or CCCS - they will both give you the same advice and neither charge any fees!
By simongr
#3579 You will need another bank account. Payplan will tell you which banks are likely to allow you to open an account - i.e. the ones that are not connected to your creditors. As opening a new bank account is not the formality it used to be, I would suggest you do that regardless of what other action you're taking to deal with your debts.

Good luck.
By Sandy
#3625 I have tried to reply to this twice now :( Thanks Sarah and Simon, I am going to do what you suggest. Some good news! I have had an offer on my house, altho not enough to pay all my debts but most of them, and now today, someone else is coming to view it....so fingers crossed they offer more :)
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By JaneClack
#3630 Thanks for taking the trouble to let us know how things are going. I am really pleased to hear this so let us know how it goes!
By Sandy
#3711 Hi again :) I have accepted an offer on my house from a cash buyer and have to complete by mid March, which is good news! Its not quite enough to pay all my debts at once but will pay the biggest ones, which is a great relief!! I want to thank you all for your advice and help and, hopefully, I will now be debt free forever!! The credit cards will never come to my house again!! Thankyou!!
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By JaneClack
#3712 Well done and thanks for letting us know.

Just plough on paying back the rest and you probably will use credit again - but you know the pitfalls now. Use them to your advantage and pay them off in full every month if you can!
ByDavidc
#3714
Sandy wrote:I have tried to reply to this twice now :( Thanks Sarah and Simon, I am going to do what you suggest. Some good news! I have had an offer on my house, altho not enough to pay all my debts but most of them, and now today, someone else is coming to view it....so fingers crossed they offer more :)


When you have the funds do not simply, in your enthusiasm, pay off your creditors but see if you can arrange settlement figures as your resources are finite.
David
By Sandy
#3715 DAVID WROTE.

When you have the funds do not simply, in your enthusiasm, pay off your creditors but see if you can arrange settlement figures as your resources are finite.
David

Oo thanks David, I didnt think of doing that!! Maybe the gods will smile on me and they will settle for less. Thankyou :)
By simongr
#3736 Best of luck. It's good to see someone get a result.