Should I change my bank account?
If you owe money to the same bank you use for wages or benefits, changing accounts can be sensible. This is especially important where you have:
- An overdraft with that bank
- Credit cards with the same banking group
- Loans with the same provider
Using a separate bank for income and essential bills can reduce the risk of disruption.
What about overdrafts?
If your overdraft is one of the debts included in the arrangement, you should expect that facility to stop. You should not rely on overdraft borrowing as part of your monthly budget during a Trust Deed.
Can I still have a bank account?
Yes, many people continue using a normal current account or a basic bank account. The key point is that the account should be appropriate for your situation and not dependent on borrowing facilities you can no longer use.
Can I get credit during a Trust Deed?
Borrowing can be restricted and should be approached carefully. You should not assume you can take out new credit freely while in a formal debt solution.
- Credit applications may be declined
- Your credit file may be affected for years
- Some agreements may require disclosure
- New borrowing can undermine affordability
What about mobile phone contracts?
Some people can keep an existing mobile contract if payments remain affordable and up to date. However, taking out a new handset contract or upgrading during the arrangement may be harder.
Can I improve my credit during the Trust Deed?
Your credit file may be impacted by the Trust Deed and the included debts. The focus during the arrangement is usually on stability and completion rather than rapid credit rebuilding.
Practical priorities include:
- Paying essential bills on time
- Keeping your budget realistic
- Avoiding unnecessary applications
- Maintaining stable banking arrangements
Will employers or landlords see it?
In some cases, credit or insolvency checks may reveal relevant information depending on the type of check used. This can matter more in certain roles or regulated sectors. If your job requires financial checks, ask for specific advice.