Switching bank accounts?

[davram1967]

Hi everyone.
I have been watching this site for some time. I have also known that I have been burying my head for some time. Things have now come to a head. My current account is £150.00 over my agreed limit. I also have a 'Bills' account which has an £800.00 limit. This is close too. All my loans and other direct debits (rent etc.)come out of these 2 accounts. I have been advised to switch accounts before my next pay day, which is on the 20th. I take it that most people on here have had to do the same and wondered how difficult this has proved for anyone. I need to act soon.
Thanks in advance

[kallis3]

Hi davram,

You need to find a bank that is not a creditor. Co-op is a good one, as is Nationwide. Most of them will only give you a basic account with just a cash card, but you can pay all your dd's from them.

[luluj]

Are you already in an IVA ? IF so can I ask why and how have you managed to get into debt in these accounts ? Part of an IVA is not to have credit !

[plasticdaft]

I assume you are just starting to look down the IVA route. You should get a new account from someone you dont owe money to ASAP,not always easy to do but the co op suited me fine. Cancelling all your non essential DD's feels strange as you are so used to juggling money around to make payments. Have you spoken to anyone about you debts yet??

[onlyhere1nce]

Sorry to piggy back on this query, but can I ask... is the Coop Cashminder Electron Card accepted at "major retailers?"

[Adam Davies]

Hi
Yes it is,although not all.
You can purchase a pre paid credit card to back up your electron card
Regards

[onlyhere1nce]

Thanks Andy,

I didn't think that this post made it through as the my Yahoo browser is playing up (as usual!!!)
Cheers

[davram1967]

Are you already in an IVA ? IF so can I ask why and how have you managed to get into debt in these accounts ? Part of an IVA is not to have credit !

Lulu.
No,I'm not in an IVA. I am looking towards obtaining one.

[Sarah]

Hi Ya

I am with Natwest and they have been great

xx

[chardonnay]

Hi,
I'm no expert, but do open a new account for when you need it - You need to start talking to someone who can help with an IVA or other solution before you move accounts and stop paying people - even if it's only token payments(That was my experience).
I had trouble with Nat west, although others found them great. I went with the co-op and they were brilliant. A few weeks down the line and things were heading for Court I moved my salary, etc. It worked for me, but we're each individuals so you must take advice from here to work out what is best for you.
Good luck and keep listening to those with experience on this site - they are knowledgeable and supportive,
Best wishes,
Chardonnay

[davram1967]

Hi all, thanks for the help. My wife has an existing account with Nationwide. Would it be a problem moving my salary to this account? She doesn't have a debit card or cheque book and their site says that don't issue them if you are in an iva or in arrears with current loans and cards. We are not in an iva at the moment and I have just told Tesco finance that we won't be making a payment this month (not a pleasant experience but one down, five to go) so we will now be in arrears, effectively ending our hope of getting a debit card. Does everyone have access to a debit card with their accounts? If not, how do you manage? I guess only using cash is the best way forward in managing your finances but in the modern world, especially for shopping online, a card is essential isn't it?

[Adam Davies]

Hi
The Cashminder account will usually accept people in IVAs and provide the elecron card.
If you move banks now your credit rating will probably still allow for a standard account with a debit card.Use a bank that you have no debt with and apply sooner rather than later.
Regards

[davram1967]

Hi Andy,
Sorry to be thick but are you saying that I shouldn't use my wife's existing Nationwide account? There is no debt with the Nationwide. This seemed more convenient as I get paid next week. We can set up the direct debits for our essential bills, as some of these are due on payday. It's just the debit card thing that's bugging me.

[Adam Davies]

Hi
No you can use this,no problem.
I think that you will miss a debit card though.
You may well still qualify for a debit card with them as you are not actually in an IVA and your missed payment will not show at the moment
Regards

[chardonnay]

Hi,
I'm with Andy on this - I switched before my IVA was approved to get the account set up (a month before the crediors meeting). I moved my wages during the month of the meeting by sending a letter to our payroll department and I couldn't be happier. I now have a cashminder account with the Co-op and a visa electron debit card - it's handy for paying bills over the phone (electricty) and hotels when I have to stay away overnight with work. I also have an e-saver account with Abbey for any money I may make on e-bay although I haven't dne any selling for a while as e-bay fees were eating what I made!!
Good luck with what ever you decide,
Chardonnay