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| Bank Accounts – Debt Management Plans |
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Why do I have to open a new bank account?
If any of your debts that are included on the Debt Management Plan are with your existing bank, it is likely that your salary will be swallowed up to cover the debt/s and leave you with no funds for the coming month. |
| You are advised when entering into a Debt Management Plan to open a bank account with a different bank, into which your salary, benefits, pensions, and tax credits can be paid and from which you can make direct debit and standing order payments. |
Don’t forget to notify your wage office, or the pension or benefits office to arrange to pay your wage, pension or benefits into your new bank account.
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| How easy is it to open a new bank account, if I am on a Debt Management Plan? |
| We would always suggest opening a new Bank Account, before entering in an Debt Management Plan or any negotiations with your bank. It is not always easy to open a new current account, because some banks do a credit check, as part of their credit scoring and if you have defaults registered against you, your application could be declined. |
| However most banks have basic bank accounts under various guises: e.g. Cashminder, Easycash, etc. which are easy to open. |
| Check the table below to see which account is most suitable for you. The majority do not require a minimum amount in order to open the account. Some can be accessed via the internet or you can visit your local branch, make sure you quote the correct account name or take the list of accounts overleaf with you. |
What does a basic bank account offer?
- Allows you to receive money and pay bills.
- Direct debits can be processed and most offer standing order facilities.
- Most accounts allow you to check your balance via the cash machine.
- Most DO NOT provide overdrafts and cheque books.
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| Bank accounts |
| Bank name |
Direct Debits |
Debit Cards |
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| Abbey (Basic Account) |
Yes |
No |
| Bank of Scotland (Easy Cash) |
Yes |
No |
| Clydesdale (Cashmaster) |
Yes |
No |
| Co-operative (Cashminder) |
Yes |
Yes |
| Halifax (Easycash) |
Yes |
No |
| HSBC (Basic Account) |
Yes |
No |
| Lloyds (Basic Account) |
Yes |
No |
| Nationwide (Flex Cash Card) |
Yes |
No |
| Nat West (Step Account) |
Yes |
Yes |
| Royal Bank of Scotland (Key) |
Yes |
No |
| Ulster Bank (Basic Account) |
Yes |
No |
| Yorkshire Bank (Ready cash) |
Yes |
No |
| *This information is correct at time of print; please check with your chosen bank/building society. |
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| Call Your Debts Cleared free on 0800 692 2000 or Take our online DEBT TEST |
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