Non-Priority: Overdraft Debt
Overdraft debt is a non-priority debt just like loans and credit cards in terms of the debt owed is not secured over anything and interest and charges would accrue.
Overdraft debt is a non-priority debt just like loans and credit cards, in that the debt you owe is not secured over any assets. However, interest and charges would accrue as part of the terms of use of the overdraft facility. The real risk is that you may use the account for your day-to-day payment, where you may risk losing your income due to the owed debt.
You will need advice from a debt adviser to execute the 'First Right of Appropriation', open a new basic bank account and transfer your income to the new bank account to protect your income and advise on the impact of non-payment and options.
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If you need advice about your situation, we can help for free.
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