Posted on behalf of Madhatter20 : Help needed with debt.

ryanm8655

Madhatter20 said:

Sorry just need to ask k again....
I have opened up a new account with another bank... But turns out my current bank is the parent owner of the new bank account
So shoukd I still move all my income to the new account 
Or do I find another bank to open a new account 

I am almost certain it’s fine to stick with the new account provider, even if they are part of the same group. This is to stop them reducing your OD when money comes in and leaving you without the money to survive/clear other debts, I think...(I assume you’ve opened and account with M&S).

LadyGnome

There is a right of set off. Check page 18 para 23 of the Current Account Terms and Conditions. 

You need an account with a different banking group entirely. 

Naomim

I'd open a different account that has absolutely no ties whatsoever to your current account.

Naomim

sourcrates

Nationwide, Coop, Monzo, are all stand alone banks/providers that offer basic accounts with contactless cards, and are easy to set up, especially Monzo, 5 mins online, all done.

Madhatter20

Thank you everyone for your advice. 
I'm trying to workout when is best to switch everything over to a new account.
Because my income is still lower than my expenses so I worry that even with the new account I will fall into an overdraft.
Also in what order to do switch everything over to new account. 
Do I switch over my income first then direct debits. 
It feels like a mammoth task and hours on the phone. 

Or should I look at reducing costs and then switch.
Brain is getting a little frazzled. 
I will get the SOA done today and post 
Thank you 

fatbelly

Concentrate on the soa for now.
You've got an account with a free £500 overdraft in M&S. 
It's hard for us to advise further until we see the whole picture.