should we change banks

after cutting down alot and just taking what cash we really need this week we have incurred £175 in bank charges Is it a good idea to stop all direct debits except the morgage then pay via giro bank to the loans ect if it wasnt for the charges we would be better of my overdraft is at its max
we are currantly waiting on a remorgage through charcoal then we can possible savings of £300 a month if we stick to a strick budget

also will a new bank take us on if we have ccjs
Named after my cat, picture coming shortly


  • I can tell you for sure that no bank will take you on with CCJ's on your credit files unless you are happy to use one of the new 'Basic Bank Accounts' that allow you the facility of only being able to withdraw cash with a cash-card and no over-draft facility. Even then, no bank is obliged by law to give you an account, so you may actually get refused at certain banks with a history of bad debt.

    Far better in my opinion to stick with the bank account you have and try to reduce your overdraft with them by strick budgeting and trying to save money wherever you can.

    One thing I am not sure about though, why do you have the bank charges of £175? It seems excessive? Can you detail how these charges were brought about then the 'experts' on here can advise you on how to avoid this happening again.

    Reducing your outgoings is always hard but well worth it to manage money better and reduce debt.

    Good Luck! :)

    An English Girl who Loves
  • Iona_Penny
    Iona_Penny Posts: 697 Forumite
    First Anniversary Combo Breaker
    Do you have any paper work regarding you re-mortgage you can take to the bank to show that this is a short term problem (assuming it is going to be sorted with re-mortgage) This may enable you to get a temporary addition to your overdraft. Otherwise is there a relative who can loan you some money on the same short-term basis because you must not get any more charges.
    Are Charcoal aware of your ccjs? We have just remortgaged and had to produce letters relating to my ccjs from 5 yrs ago and be referred to a higher authority than the local branch; this just all took longer than a straightforward case. Have you factored this into your timetable?
  • I think it would be a good idea to cancel all DD's (except the mortgage) and pay foreverything with cash for the time being...Dds may be more convenient but when you are racking in £175 worth of charges (which I presume are to do with unpaid dds) then they are definitely not as cheap!

    The alternative may be to work out what your available income is after all dds have been paid for and withdraw this amount from your account and only use this cash - no cheques no paying for things by card (which I know are all too easy to forget about!) just good old fashion cash. However you would have to take into account any bank charges that you are incurring because of the overdraft.

    Why not post your budget on here...I am sure that there are people who could trim your budget even further and possibly suggest savings that you haven't thought of.
    2014 Target;
    To overpay CC by £1,000.
    Overpayment to date : £310

    2nd Purse Challenge:
    £15.88 saved to date
  • Changing banks is a great idea if you can, and then stop everything that comes out by dd from your old bank. You then have all your money so you can prioritise your debts rather than feeding an overdraft which is nothing more than a credit debt. You cannot begin to budget properly if you don't take control of your money and decide yourself where the income is going to go. The first considerations are your mortgage, gas electric council tax and then food/housekeeping/clothes for yourselves. Then throw whats left at the debts. You don't need to let the bank decide whether you are going to eat this month

    good luck
  • feefee_3
    feefee_3 Posts: 111 Forumite
    Its Just That All The Dds Came Out In The Same Week So Everytime They Tried To Take Out We Got Charge I Know Off One On Monday His Car Insurance £40 We Have Just Deposited £40 Into The Bank Account To Cover This
    We Have Told Charcol About The Ccjs And How Much We Own On Cards And Loans,she Offered Us One At 15% But Told Us To Say No Cause She Says She Will Get A Better Deal
    We Need To Remorage £70,000 To Clear Our Debts All Of Them
    Named after my cat, picture coming shortly
  • fast_track
    fast_track Posts: 78 Forumite
    Think before you remortgage and change your credit debts into priority ones secured on your house. These second mortgages can be very expensive indeed too. Have you considered an IVA - if you have roughtly £200 pcm after you've paid your essentials as above you could do this

    Also ring the people who take your direct debits and ask them to change dates so to spead them a bit more evenly - they usually do this, if a few have failed already they will understand why you need to do this.
  • mountainofdebt
    mountainofdebt Posts: 7,795 Forumite
    First Post First Anniversary Combo Breaker
    If you don't want to cancel your dds then I think a good idea might be to either sign up for your bank's internet banking as you can see exactly when the direct debits are and your current balance.

    What I found useful as well was to have the dds coming out of only one account..we found it impossible to budget when they were coming out of 2 different accounts.

    It does seem to be the general concensus not to transfer credit cards and loans to a secured loan (such as a mortgage) if it can be avoided.

    Post your expenses & income on here and I'm sure that someone somewhere will be able to suggest where savings can be made.
    2014 Target;
    To overpay CC by £1,000.
    Overpayment to date : £310

    2nd Purse Challenge:
    £15.88 saved to date
  • ps_live
    ps_live Posts: 143 Forumite
    What I found useful as well was to have the dds coming out of only one account..we found it impossible to budget when they were coming out of 2 different accounts.

    I recently moved from LloydsTSB to First Direct as I was just sick and tired of Lloyds' poor service (I was with them 16 years).

    A good trick I learned was to open a "budget" account that dealt exclusively with all your direct debits. At the start of the month a SO would transfer a set amount into the "budget" account that would cover ALL your DD's. This worked very well for us, as we knew exactly what we had left in the current account for the rest of the month.

    It worked so well, that I have actually opened another current account with First Direct to use as a "budget" account today! I just couldn't get used to my DD's mixing with my money :eek:

    Works for me :D

    Debt-free as of 01.10.08. I will never have a CC again and I'm "in the black" :beer:
  • When I had reached this point a couple of years ago, I got all of the banking details for my DD debtors, cancelled their DD's and set up Standing Orders for the amount I could pay (or had agreed to pay). I set the SO up for the day after I had been paid which was also the day after which my mortgage was paid.
    So, after the second of the month, I knew that what was in my account was what I had to live on until next pay day.
    Also never underestimate the help of the CAB - they are a great group of people offering a god send of a service.
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