Can I close overdrawn bank account & what happens to the debt.?

mickey70

Im in a lot of debt with my bank.

I wanted to ask, is it ok to close my bank account & transfer my earning & dd, to a new bank (I also have a bank account with another bank, that I havent used, but is still open).

And what will happen to the bank debt?

Thanks in advance.

Broken_hearted

You can open a new account but not close the old one until the debt is cleared. Best is to set up the new account, move everything over then negotiate with your old bank to clear the debt.

rubydoiwannabee

Hi Mickey
We are in the same position as you, we have moved all our ddms and so's over to a new bank account and so far my OH weekly wage has gone in. As soon as my monthly salary goes into the NEW account at the end of July. I will be writing to my old bank to ask them to put my CC and OD on a lower interest rate together that we can pay off with an agreed amount each month. I'm not sure what response I will get but it is worth a try and in the meantime I am paying the CC and from 1st Aug will be paying a monthly amount to reduce the OD, which in the last year has pretty much been stagnant. We haven't been in CR with our old bank for nearly a year, even though our salaries have been going in.

We are 20 days into July and are running an account without an overdraft now (at new bank) and are staying in CR. So we are pretty chuffed. It is not easy and has taken some serious budgetting, but I feel we are in control of things now and especially in control of OUR money.

Best of luck, let us know how you get along.