When you're in debt, it's important to know what banking options are available to make sure your money is safe and you can prioritise your household bills over your unsecured debts.
if you've got debts with the same bank that your current account is with, we'll nearly always recommend opening a new basic bank account somewhere that you don't have any debts.
This is because banks can use the 'right of set off' to take money from your bank account to pay your debts if you've fallen behind with your payments. This includes your overdraft, credit card or loan payments if they're with the same bank.
If you're struggling to make payments to your debts you need to make sure that you prioritise your household bills and living costs, and make your income is available to you without the bank taking it first. By opening a basic bank account somewhere else you'll be able to be more in control of where your income goes, and how you budget your money.
Credit unions are also a becoming a more popular alternative to high street banks, as they offer accounts to people on low incomes or who've got a poor credit file. This means they can be a better alternative if you're already struggling with your finances.
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