If someone has an overdraft and their benefits are stopped....

Aella
Aella Online Community Member Posts: 68 Contributor
in Benefits and income

If you're overdrawn and your benefits get stopped, you have no other income, what happens with the overdraft? Do the bank just keep racking the charges up until you can pay it off?

Comments

  • Carpy
    Carpy Online Community Member Posts: 419 Empowering

    That's a question you should be asking your bank.

  • OverlyAnxious
    OverlyAnxious Online Community Member Posts: 4,619 Championing
    edited 8:46AM

    Yes, the charges just keep racking up, the bank don't care whether you have an income or not. Overdrafts are a 'legal' scam in my opinion, best avoided altogether. You're better off using a Credit Card where the fees are usually much lower.

    If you need advice on how to clear the overdraft with low/no income then I would recommend contacting somewhere like National Debtline or Stepchange who can offer tailored debt advice for your individual situation.

  • Albus_Scope
    Albus_Scope Posts: 9,911 Scope Online Community Coordinator

    Hey there @Aella I hope you're doing ok?

    As Carpy has said, you'll need to speak to your bank, as they all do things slightly differently, so we'd not be able to give you 100% advice on this one I'm afraid. But please do speak to your bank and to the DWP if you're having money problems.

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