Alternative Banking for People in Debt

You must be aware of the alternative banking for people in debt. This way, you can ensure that your money is kept safe and you would not compromise your priority bills over your unsecured debts.

If you hold debts with the bank where you invested your savings or money, you must reach out to your bank and check what alternatives they can offer for you.

They may consider:

  • Setting up a basic bank account for you
  • Reducing any overdraft to a rate that you can afford
  • Separating your overdrafts from your current account

What to do if my bank cannot help me?

We suggest that you set up a new basic bank account with other institution if your bank is unable to do it for you. Makes sure that you do ‘t have any debts to the bank or institution where you’ll set up your account with. You can pay your income into this account to ensure that you have funds to suffice your household bills and other essential living costs. Your new provider may conduct a personality check to confirm your identity but not a credit check. This means you don’t need to worry about your credit file.

Additionally, it’s rare for banks to utilised that right of set-off which allows them to take money from your account and use it to pay off your bills once you fall on arrears. This can include:

  • overdraft
  • credit card
  • loan payments

If you’re struggling to secure debt payments, yet your bank cannot offer any help, make sure you do not compromise your priority bills. You have to be certain that your income is secured. This is one way to cover your essential household bills and other living costs. Also by opening a new basic account to a bank where you do not have debts, you can ensure you have funds available to satisfy your essential costs.

Moreover, you must avoid borrowing from banks and find an alternative means to secure money. Credit unions are a great alternative due to lower interest rates. They also aim to help people with low income and poor credit.

Bank Account Problems

If you are in debt with your bank, we can help you deal with your circumstances. There are alternative banking for people in debt that you must be aware of.

Our online advice tool can give you the best possible means on how you can manage your debts. You can also call us and talk to our debt experts who can help you determine the best solution to your debt.

The Different Debt Management Solutions