I have had big debts for a while now but have been able to keep up repayments, now my partner is unable to work the situation has changed and I will need some help in sorting out my finances.
I have read that I need a bank account unconnected to any of these institutions and was thinking of either the Coop or Santanders basic account. Am I correct in thinking both of these are unconnected from my current lenders.
I have been on an online gambling site recently hoping foolishly to win my way out of trouble but it didn't work. I did not add to the debt as I used up the last of a redundancy payout.Last week I closed the account to make sure I could not make the problem worse. I have read that I need at least 3 months clear statements before an IVA will be accepted and I should be able to hold on till then. If I were to open a basic account would they inform my current bank as that would make things extremely difficult as i don't want to tip them off about my plans until I know for sure myself what the plans are.
One last question , our mortgage is with First Active which is a part of RBS, would that be affected as it is on a really low interest rate at present and cannot see us getting another mortgage deal as we have no equity in the property.
Thanks for reading a very long first post and look forward to hearing your advice
I might be wrong, but I think Tesco CC might be funded through Santander (just a worm gnawing at the back of my mind). Co-Op cashminder is very popular and easy to open over the phone or in branch.
As long as you tell them you will do any transfers of DD's, etc., yourself they will not tip off your current bank.
Mortgage should remain as is until the end of your current repayment plan.
If the gambling wobble was a one - off there shouldn't be a problem. They generally like the three months clear if the gambling was a cause of the indebtedness (one way or another).
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you still are in the IVA pre-approval (creditors meeting) stage, you might be able to do as I did - open a full current account with a non-creditor institution now (less overdraft of course). Best not to reveal that you are considering an IVA though (no requirement to volunteer such information).
I moved to First Direct - and received £100 for the privilege!!! Also opened a full current account with CoOp though, as heard that HSBC group can be unsympathetic if/when they find you on the insolvency register, and make you close your account.
Interestingly, I managed to open the CoOp account after my creditors meeting (the date at which my IVA was put in place), but before I appeared on the insolvency register.
Once you are on the insolvency register, you will probably only be limited to a handful of basic accounts. These come with restrictions eg: no cheque book, and some only give you a 'cash card' rather than a full debit card.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
Tesco bank used to be a joint venture with RBS, they then bought out RBS so are now completely independent, no link to santander so you should be fine. I would also consider Nationwide as it has a good branch network and ratings.
"Just when you think that you can make ends meet, somebody moves the ends."
I am not sure where this three month waiting time comes from for someone who has gambled historically. So long as the person can demonstrate that this not addictive gambline, which could prejudice the future of the IVA, then in my opinion an insolvency practitioner should act straight away as debt relief is probably essential.
Both banks you have mentioned ought to be fine for a basic account, and your mortgage will be unaffected if you enter into an IVA, but mortgage payments will need to be maintained.
Co Op or Lloyds maybe an option You can google a list of banks in your area and choose 1 that is near for you to get to as and when
Your debts are not that much so dont feel bad about that and now you are sorting the problem out stay positive and you will soon have this under control keep off the gambling only ever be 1 winner
good luck
have a look at the basic bank accounts available - many consumer sites do list them and coop cashminder as well as nationwide basic accounts come highly recommended.
Ensure you manage your new account well, do not go overdrawn and you have come to the right place. This forum is full of very helpful individuals and experts who will be able to guide you the correct way
Managing Director of ClearCash Limited, a general purpose and reloadable prepaid MasterCard facility. Campaigner for the unbanked sector believing that no one should be financially excluded. "Intelligent Money Management"
Thanks again for the advice I think I will go for the coop option as it is nearest to me.
One more question totally unrelated to the original question, I have read a lot of articles saying not to use a firm that charges such as CAB or CCCS but there are lots of testimonials on here for other firms. What is the difference between a firm that charges and one that doesn't.
They all charge for IVA's, but it is taken out of the monthly repayment, so you don't see it. The "charity" firms don't charge a management fee for DMP's, but still get the money from the creditor by way of donations or funding from the banks.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Bear in mind the CCCS are funded by the banks and have only one insolvency practitioner to deal with tens of thousands of calls. Get some advice from the independent professional sector before you decide and ask how many IPs they have and how many cases they do.
If you contact the CAB it is likely you will wait for an appoitment and then be referred to Grant Thornton as the CAB cannot do IVAs. Better to contact an insolvency firm directly.
