What to do if your bank cannot help
Your bank may not be able to help you with your debts. In this case:
- Set up a new basic bank account
- Use a bank you do not have any debts with and make sure the account has no credit facility
- Pay your income into this new account
Your new provider may perform checks to confirm who you are, but there should be no need to perform a credit check with this type of account.
Banks can take money from you account to pay debts if you fall behind. This called the 'right of set off'.
It is rare that banks do this. But they can do it if you have these kinds of debts with them:
Make sure you can get to your income without the bank taking it first.
Opening a basic bank account with another bank means you can control:
- Where your income goes
- How you budget your money
You could also look at credit unions. They offer accounts to people:
This means they can be a better option if you find it hard to deal with your finances.