Overdraft question?

Kimberley

I've applied for a Step Account with Natwest after the CCCJS advised me to open a basic account up as with Abbey i have a £600 overdraft and i'm constantly living off that. The CCCJ told me that all they are oing is taking my benefit.

So what i want to know is after i have transfered my benefit and Direct Debits to my new account, do i keep my old Abbey account open to pay off what i owe them or do i close the account and wait until they bill me?

DilbertJones

You'll have to pay no matter what.

You could keep it open, paying off as much as you can, the vast majority will be Interest for a while, but at least it will be coming down

Kimberley

I know i'll have to pay it but i didn't know whether to close or keep it open, i guess if i closed it i'd still get the Interest and maybe more added, so if i keep the account open, i could just deposit about a fiver a week into it to clear..

Shadowplay_2

Hi,

I think you should leave the account open. set up a Direct Debt from the new account to the old one with the OD for whatever you can afford each month. Once the OD is paid off cancel the DD and close the account :beer:

Kimberley

Good Idea :beer:

stressed_2-2

You will not be able to close you abbey account until the o/d is repaid in full. Best thing to do is set up a standing order into your abbey account until it is cleared but also gradually reduce your o/d limit to stop you getting tempted to dip into it.