Starling refused account

Lettingissues77

Thank you, I think that’s exactly where we are at. My salary and child benefit (£305 as we have 4 children) covers rent, groceries, essential bills. As I did not know how quickly he would find work I had budgeted we can just about get by but the debt repayments were impossible. Now I can look to save a bit and work on a realistic budget while waiting for everything to default. 

cumbrianmale

I was refused for a Starling account but got a Monzo account when returning to more mainstream finance post IVA/DMP

You could also try Chase as they are a top recommendation and only do a soft search as they don't offer overdrafts.

Lettingissues77

Thank you, I will try someone else. 

The thing I don’t really understand is what happens to overdrafts. I understand ideally I want everything to default quickly. But how do the banks know to default overdrafts. As there isn’t a payment as such. Should I write to them to explain I am going into DMP but am waiting for defaults? 

I am most nervous about my RBS accounts as searching NatWest/RBS I can see some people have had issues with them. 

sourcrates

Overdrafts are more tricky and asking the bank to cooperate with you and default the debt is a good option.

Lettingissues77

Will they look unfavourably at it if I am wanting defaults? I would have thought this means they will receive less money. In total I owe them approximately £17k but they can see from current account activity that I have been in my overdraft for years.

I was thinking of saying I have spoken to step change who have advised in my situation a DMP is suitable, but am looking to default before starting the DMP. 

asterion_2

A DMP would have the same effect in your credit record as a Default, ie you will struggle for six years after the arrangement to pay ends. I would try to exclude your partner from it. You're likely to need credit at some point. No need to drag him down too, if there is no financial link.

Lettingissues77

Thanks. I had started to lean towards leaving him out. He has two smaller debts which would be easier to clear. Then just one bigger one. The only thing that puts me off is that I really want to stick to the budget and the thought that there is some credit available could be a temptation. But have today looked at our budgets separately and think it makes sense to leave him out.