Bank Account Debt

Bank account debt

Banks offer different types of accounts. Every account will have different features, for example an overdraft, debit card, cash card or a cheque book.

Some accounts charge a monthly fee or require you to pay in a certain amount of money each month. If you’re paying a monthly fee you should consider changing to a fee free account.

Think about whether you’re getting value for money through the account you have. For example, if you pay £15 a month for your account, it’s costing you £180 over the year.

The two main types of account are:

Basic accounts

A basic account doesn’t have an overdraft or a cheque book, so you can’t spend more money than you have. Some basic accounts come with cash cards which you can use in cash machines. Other accounts come with debit cards. Most basic accounts let you set up standing orders and direct debits.

Although your credit rating will be checked when you open a basic account, you shouldn’t be refused the account because you have a poor credit history.

Current account

Current accounts generally come with an optional overdraft, cheque book and debit card. You’ll be able to set up direct debits and standing orders on the account.

The bank is likely to check your credit rating when you open the account and may refuse your application based on your credit history. You might have to pay a certain amount of money into the account each month or pay a monthly fee.

We can help

If you’re having problems with your bank account please visit us and we’ll be able to assist you with more information on dealing with your debt. Use Step Change online Debt Remedy tool Or, if you’d prefer to call us, then please call us on 07541978789 to speak to one of our volunteers who will help you get your situation back on track. Whichever option you chose we’ll give you free debt & money management information that’s tailored to your situation.

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