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| The independent answer to your debt problems | login join |
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Davo1
| 17-11-2011 12:48 PM |
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Joined: 17 Nov 2011 Posts: 2 | Hi, I live in Scotland have a Ltd Company, myself being the only employee. I also have just too much credit card debt and unsecured loans that I can manage at the moment. Right now I am considering debt management. The majority of my debts are with Lloyds TSB but they also have my business account. I will change my personal account to another bank but what about my business account? As it is in the name of my company can they dip into it to try recover my personal debts? Secondly, I have seen advertised that companies can look into ones credit card agreements and possibly find loopholes and cancel the agreement. Is it worth pursuing? Just for the record, up until recently I would have thought it morally wrong to try this but they are just putting up their interest rates whenever they want to (MBNA especially) and have treated me very badly when on the phone to them. Hope you can advise. |
| DW George | 30-11-2011 11:14 AM |
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Joined: 01 May 2007 Posts: 1037 My Profile | Two things, how much debt does your business have and how much debt do you have. Can you separate them? If your business debts are too big then you should consider winding up your business and going bankrupt. If your personal debts are too big you should also consider bankruptcy, although there may be other options available to you such as DAS which is a formal form of debt management. I would definitely recommend moving both of your accounts away from LLoyds TSB as they will just take money away from you as soon as you get. In respect of paying companies to find loopholes in your CCA agreement, I would be cautious of them. We could certainly look at your agreement if you want to copy it and bank out your personal info. Use a photo sharing site such as fickr. Just for the record, I don't think morals comes into it, especially when it come to credit companies who had a business plan of letting anyone with a pulse borrow money from them. They've been bailed out by the Government but the common working man has been ignored! |
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Davo1
| 01-12-2011 08:55 PM |
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Joined: 17 Nov 2011 Posts: 2 | Thank you for the reply DW George. My personal debts are much higher than my company debts. I have been drawing far too much from the company in dividends and directors loans to try keep up with my personal debts. Annual salary is 20k gross but then my dividends and directors loans are above 25k. When I called Lloyds TSB a few weeks ago to say that I couldn’t pay this month on my CC and unsecured loan (first time since 2003), they went into detail about my personal expenditure. The lady wouldn’t hear that I had a bad couple of months plus the money she saw coming in wasn’t really mine to spend. MBNA gave me similar treatment. Would it work if I just drew my salary and left the rest in my business, where it should be. It certainly wouldn’t be enough to pay my debts but on the strength of that take out a DAS or similar? |
| DW George | 05-12-2011 11:12 AM |
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Joined: 01 May 2007 Posts: 1037 My Profile | If you have an account with the same bank as you owe money to then they'll dip into to it as and when they like, ensuring that they do not lose out. Not really knowing too much about your financial situation i think whatever you do needs to firstly stop increasing your debt and secondly protect any assets you may have. If you have a mortgage I would therefore suggest getting your personal debt sorted out before your business debts. DAS is only really suitable if you have a steady income over the payback period. For any debt remedy to be successful you first need to be in control of your spending. Are you in control? |
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Peter01
| 08-12-2011 06:53 AM |
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Joined: 05 Nov 2011 Posts: 4 | You are doing good by taking the help of debt management to pay off your debt and also they can be very beneficial and also do the comparison of your business account in that same bank. |
