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I owe money to my bank - what should I do?

If you owe money to the company you bank with, you need to open a new bank account as soon as possible. For example, you will need a new account if you have overdrafts, loans, credit or store cards, hire-purchase or finance agreements with your current bank. This is because your bank has the right to take money from your account to pay any debts you have with them or with other companies in the same banking group. They do not have to give you any warning and it may mean you cannot pay your essential bills or living costs. Even if you are not yet behind with payments towards your debts, you should still consider opening a safe bank account in case you do fall behind.

If you are having debt problems it may be difficult to open a current account, but you should be able to open a basic bank account. Most banks offer basic bank accounts even if your credit rating has been affected by your debts. View a list of basic bank accounts.

My Money Steps will help you work out repayment offers you can make to your old bank once you have arranged a new safe bank account.

 

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