Changing your bank account may be necessary, especially if this particular bank is a lender covered by the Trust Deed. Whether it’s for a credit card, unsecured loan, overdraft, or store card, you must make sure you switch. Why? Because this bank could possibly take matters in their own hands and take all the money you have and use it towards your unsecured debts.
If this is also the account where you keep all your savings or wages, you could end up with an even bigger problem of being unable to cover your mortgage, rent, or other bills.
Choosing the next bank account should also not be taken lightly. Some people make a switch to another bank account without even checking if this financial institution works with this type of problem.
This may become a problem if this bank decides to close the account on that basis and keep you from accessing the remaining funds. Again, if this account has most of your money, this may keep you from being able to settle your other bills.
Experts suggest opening a basic bank account for those who plan to use a Scottish Trust Deed as a solution to their debt problems. While there are fewer basic bank accounts compared to full featured bank accounts, people should be able to find one that allows them to withdraw money as well as pay their bills.
Can Trust Deeds Control The Person’s Bank Account?
Most will probably be wondering what this type of application can do to their bank account. We normally recommend our clients to move to another bank before their trust deed application. Many people who are in debt also have a couple of unsecured debts under their bank whether it be a personal loans, credit cards, or overdraft.
What Your Bank Can Do Against You
During your application, our company will talk to your creditors as your representative. If you owe money to your bank, then they will also be notified. Some banks may choose to freeze your account and use it to pay off some of your debt.
They often do this without prior notification. In fact, many will realise that the bank has done so only when they try to withdraw money and find out that their access has been suspended.
Apart from freezing your account, your banks can opt to just close the account, especially if they’ve cleared out all the cash. Opening an account with another bank before you apply for a Trust Deed means that you safeguard yourself from this situation.
We’ll Help You Find Another Bank for Your Scottish Trust Deed
Most major banks will allow you to open a basic account that comes with a bank card.
These probably won’t come with an overdraft.
While these are obviously basic features, it is still better than the threat of having your remaining cash taken away from you.
Ideally, when opening an account, you should pick a major bank. Additionally, make the branch close to where you live or work so you can easily get to it.
If it is possible, get a bank without the monthly charge.
Before you go through this process, consider talking to us so we can work with you and advise you if this is necessary.
Trust Deed Example
Example Unsecured Debts
|2||Credit card 1||£6,812|
Your Monthly Repayments Would Be
a Scottish Trust Deed £748
(total contractual repayments)
a Scottish Trust Deed £295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances. For more information on our fees click here