In overdraft on a account, moving it to help get in paid off?????

loobyboo

On this account have been in the overdraft for ages, this was due to the local council messsing up our housing benefit and leaving us with no money to pay our rent so had to use the overdraft.

So now we are always in the overdraft despite having the HB going in and trying to put additional monies across so for 1. we don't go over the overdraft and 2. to decrease the debt we have.

my question is should we try and move the income going in to this account and start a fresh, so are not always in the red and can try and get rid of the overdraft easily.

we are already paying of a loan through help of the CAB, due to illness and my hubby having to give up work to look out to me & family a few years ago. He is now self employed.

any advice greatly rec'd.

Tixy

Hi Looby

Some people find it easier to move their current banking to a new account and then pay a standing order each month across to the old overdraft treating it more like other debts. This can help people to see where they are each month and ensure they don't keep respending the overdraft. If you do this make sure the new account is with a new bank you don't owe any money to.

The possible downside is that once your bank sees there is no regular money going in they could possibly decide to recall the overdraft. If that happened you;d then need to try and agree a monthly repayment with them formally.