A big disadvantage of being without a bank account is that paying bills can be more of a hassle. Most bank accounts allow you to set up Direct Debit arrangements that make paying bills an easy process: all you have to do is make sure the money is available, and it will leave your account automatically.
But without an account, you will be forced to pay your bills in person – over the phone, online or by going into your bank or Post Office. When you consider how many bills the average person has to pay each month, it’s clear that this can be very time-consuming.
Very few people deliberately go without a bank account. If you don’t have one, the chances are it’s because you have struggled with money in the past and have been rejected when applying for accounts in the past.
However, even if you have been rejected for an account in some places, there are almost certainly some options available to you that could enable you to manage your money in much the same way as someone with a current account – including paying bills by Direct Debit.
Bank accounts for bad credit
Perhaps the most common option for people in this situation is a basic bank account. These are provided by almost all banks and building societies, and as the name suggests they offer a basic banking service. As well as somewhere to keep your money, most accounts offer a Direct Debit facility, and some provide a cashcard or debit card for day-to-day spending.
Basic bank accounts are rarely advertised by banks, so you may need to contact one directly to apply.
There are also an. These accounts rarely require a credit check, but usually offer many of the benefits of a current account. A number of these accounts offer a ‘managed’ banking service in which they will take care of your budgeting for you, making it less likely that you’ll run into problems with your finances.