New bank account?
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Cleverquacks
Posts: 3 Newbie
Hi all,
I am in the process of setting up a debt management plan with step change. I read that it’s wise to open a new bank account for bills and my pay to go into. Is this only if you are in you are in an overdraft which is included in the DMP? Or do I need to do it even if I am not? Trying to avoid having to change all of my direct debits to a new account.
I am in the process of setting up a debt management plan with step change. I read that it’s wise to open a new bank account for bills and my pay to go into. Is this only if you are in you are in an overdraft which is included in the DMP? Or do I need to do it even if I am not? Trying to avoid having to change all of my direct debits to a new account.
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Comments
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If you owe money to a bank on a credit card etc then they have the right to take money from any other account you hold with them to pay it off. You should make sure that your current account and any savings accounts are with banks that you don't have any debts with.
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So my current account is with Santander. I am in the overdraft on this account but haven’t included it on the DMP. I don’t have any other debt with Santander. Should I still set up a new current account for all my bills (mortgage, utilities, etc) and day to day expenses or can I leave it with Santander?0
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You should not have debt with anyone outside the DMP with Stepchange as they treat all creditors equally.
Also you need to ensure that all your live accounts and savings are with a bank with who's banking group you no debt. Otherwise they can offset savings and salary to pay the debt to another bank in the group.The person who has not made a mistake, has made nothing0 -
Ideally all your debt should go into the DMP.
You should choose a new bank, with whom you have no debt, preferably a stand alone bank, not one that`s part of a banking group.
Then open a new, basic account, with no borrowing facility.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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