Help - Switching banks - overdraft

survivor84

Hi,

I am desperately trying to sort my finances and need to open a new bank account before I either enter into a DMP or bankruptcy. I have been looking at the best deals and first direct or M&S seem to be the ones I'm leaning towards. But if I switch will my overdraft be taken on by the new account? I don't want that as the overdraft is large and will become part of the DMP. Sorry I'm just finding it a bit confusing! Thanks so much x

colsten

You cannot switch an overdraft. You'd have to pay it off in full before your old account can be switched.

If your credit files look bad, you might have difficulties opening a new bank account. You could try Monzo or Starling or Fineco - these might not do a full credit check.

survivor84

ok so I'm better just opening a basic bank account then and switching it all manually?

colsten

You may or may not qualify for a basic account (none of the three I mention do offer basic accounts; neither do M&S or other 'picky' banks) as you already have a bank account.

If you have managed opening a new account, you can certainly transfer your DDs and SOs yourself. For DDs, you just need to give the payees your new bank details. For SOs, you just delete them from your existing account and set them up again on the new account