Overdraft confusion

Skintmum86

Hi all I am soon to be stopping paying my minimum payments to start saving my emergency fund and then going onto a DMP

my 2 biggest debts are credit cards from the same bank as my current account. I have set up a new basic account with another bank who I have no debt with online yesterday.

My question is, as I was at the bottom of my overdraft when I got paid last week if I miss the credit card payments tomorrow are they going to immediately withdraw some or all of my overdraft facility?

Am I able to transfer all of my "available balance" (which is mainly OD) to another account to clear out my current account? Or will it not allow me to transfer my overdraft?

Sorry just feeling really anxious about stopping payments I've never missed a payment in my life before.

Thanks

fatbelly

You are correct that your old bank has the 'right of set-off' which means they can take from your old current account to fund another debt with that organisation.

That's exactly why you needed the new bank account.

The attitude you need to take is that you are walking away from your old bank. If you want to make one last transfer out of it that doesn't make much difference either way but I don't see any point in doing that unless you are absolutely desperate for that small sum.

They won't immediately use the right of set-off - they are supposed to give you notice that they are doing so.

You can understand why it's good practice to build an emergency fund.

Skintmum86

My overdraft is £800 so nearly my full wage which is why I couldn't afford for them to take it, I need it to pay Bill's etc. However all has now changed if you see the post I'm putting up in a minute I really appreciate all the advice I've had so far, thank you x