Why You Should Open A New Bank Account
4 reasons why you need a new bank account
Everyone needs a bank account that they can rely on, one that does not cause more trouble than it solves. So here are four reasons why people with financial problems should get a new bank account.
If you have a lot of problem debt, you may think you cannot change bank accounts because no-one else would let you have a current account. But the new bank will not refuse you opening a simple savings account just because your credit record is bad. A savings account is all you need.
When you open a bank account you normally sign and give the bank permission to take any money that you owe them. If you default on your payments they can seemingly deduct their money and leave you "penniless". And they will not reverse those payments. So do not allow yourself to be caught unnecessarily in a situation where you have nothing for yourself and your family, one day, in the future. Why risk it?
1) Low charges with a basic savings bank account!
With a new savings account, you can keep your charges low by excluding all the unnecessary debt orders. It we assist you; you will have one monthly pay to us and that you can do by EFT. Just make sure that you have sufficient funds to meet your other debit orders. If not, the bank will penalize you with extra bank fees.
2) No overdraft that traps you in debt
Normally an overdraft is the worst debt to escape from. It is like trying to get to the top of a mountain up a slippery slope covered with loose gravel – the more steps you take the more you seem to be sliding back down. And the high overdraft fees make this even harder.
By opening a new savings bank account, where you can have no overdraft, your old overdraft becomes just another debt that you have to deal with. If you are in debt management plan, it will simply be included in your DMP.
3) Be safe – do not use a bank you owe money
This is most probably the most important point.
Never borrow from the bank where your salary is deposited. By doing this you will be in control of your money, instead of it being swallowed up by all those other debit orders. And if you use our DMP you will have one affordable monthly payment, leaving you with more money each month for yourself and your family.
Do not be one of those people who ignores this good advice and hopes that the problem will just disappear. It won’t!
4) Have a fresh start
A new account can be a great boost to better budgeting:
- It is simpler to see you only have money coming in each month for you to divide between your debt payments and expenses. You will control the payments.
- You will be able manage your money and avoid the high bank charges.
- Have a hard look at all your debit orders and perhaps some of them could be cancelled, and not transferred to your new account.
- You may be able to change the date of the debit orders to better suit your circumstances. One that goes out the same day or after you get paid can make life simpler.
- The most important aspect is that you will no longer be in the red on your bank account.
So, which basic bank account should you get?
As you can bank without visiting your bank these days, you have a wide choice.
My advice is to look for the one with the lowest charges and that is not too difficult to guess.
In my opinion, Capitec Bank is the best option, provided that you do not owe them money.
Golden rule: Never borrow from the bank where your salary is deposited.
If we assist you to manage your debt then the following information is important. Please Read here...