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I’ll even settle tully, but the current is situiation …. I have a bank loan ive not been able to pay for six months. Now the starting point for some last acct money in a savings account at another bank, for rent, food, gas, utilities. etc. .. do I have to trim my bank acct new savings. or a check? Thank you for your help.

3 Thoughts on I began my feet and a bank acct worried topped the other?
  1. Reply
    Aeon Flux
    March 18, 2013 at 8:43 pm

    It didn’t used to be this way, but I think that other banks can deny you the right to open an account at their institutions if you owe substantial money to another bank.

    Look into the law called Check 21.

    I don’t think any garnishments per se can be realized without a court judgement against you by the bank, but banks have found a way around the law by using Chex Systems. It’s a banking service for banks and by banks, with almost no help to the consumers they rate. They have established a credit rating system for bank accounts, similar to the credit reporting agencies’ setup. The only difference between Chex systems and creditors is that you have no say in what they decide about you. It’s impossible to repair your secret bank credit unless you don’t owe anyone money.

    This is something that some banks use more judiciously than others, with big national banks using it the most. Local places and other types of setup make their decisions other ways and often use different criteria to make them.

    Before you do anything else, save about 1000$ -cash- in mattress money that is somewhere safe. Don’t pay anyone until you have some emergency money in hand, no matter what anyone says. Put some aside each pay period until you get it together.

    The one thing that I never do is open a checking account with people that I already owe money to. That’s where the garnishment starts to get really crazy. I am personally in a situation where a bank of mine where I have had a checking account and nothing else has recently bought out my mortgage loan. So I moved what money I have from that checking acct somewhere else. I don’t want to be a few days late w/a payment and wind up w/o grocery money.

    In the meantime, check on the internet for credit unions in your area. They all have different qualifications to join, but some qualifications are as simple as living in a certain zipcode or being an employee of a particular business. I belong to one at my church. They don’t have as many branches, and their hours aren’t as convenient, but their fees are ultra low, and some have automatic online billpay. Even if they don’t have any of that, they can issue money orders for bills to mail and other basic bank functions. All but the very largest don’t use credit neccessarily to solely decide basic bank functions.

    But all of this is a last resort. You should try to communicate with the bank you owe money to. If you can send good faith payments, they might look more favorably than if you weren’t sending anything. A good faith payment is something-anything(even 20 dollars a pay period)- that shows your creditors that you are still trying to pay. They will still try to harrass you mercilessly, but in future decisions like this one that they may play a part in, they may consider you more favorable than not.This kind of thing can make a real difference in the decision a bank makes to report you to Chexsystems and the credit reporting agencies. Just make sure that nothing that you send them has your account number on it. I purchased money orders from Wal Mart money gram at about $ 1 apiece for about the first two years of my debt plan. After every payday, I’d cash my work check at the bank that issued it- not a check cashing place- and go over and purchase money orders for my bills. The creditors got paid, and didn’t have account access to garnish anything. I developed a serious understanding of the concept of patience, and eventually the creditors quieted down. Everything else I paid cash for. Big expenses I either broke up ( I have a $ 220-350 energy bill) into two or three parts,one payment per pay period. Though I paid a lot in money order fees, I didn’t pay any bank account monthly maintenance fees, so it worked out okay.

    I had to cut my expenses as well. I am a single student, so I lived off of Sam’s Club, Costco and the like. It was worth the membership fee, because I shopped once a month for the whole month, and the items that I use with that kind of consumption is so small that it actually saved me money-even with coupon clipping at normal grocery stores. I average about 60-100 dollars per month there. I usually stock up on basic things like toilet paper, paper plates,cat litter, fruit, meat etc.

    When I was in a ton of school, car and credit card debt, I did these things. Heck, I am still doing these things. But in the process when I was really in trouble, I realized something important. It is hard,but you can live without credit cards,checking accounts and banks. I learned the hard way that you shouldn’t do business with people-anyone- who needs access to a bank account in order to serve me. Most places still take cash, and that still works best.

    Oh yeah, and my car died on me when I went through this. I took my 1000 and after fixing it, saved another 1000. Once I got a chance and caught my breath, I sold the one I was in and bought a 2000 dollar car.

    If you have a chance, you might want to pick up the Total Money Makeover. It’s a book from this man, Dave Ramsey. If you can get past the preachiness he provides permanent solutions, not temporary fixes in great detail about moving towards a totally debt free, gimmick free life.

    In the meantime, hang in there kid. With some diligence, you can make these days a bad memory.

  2. Reply
    March 18, 2013 at 9:26 pm

    I don’t know that they can “garnish” your other bank account, but they can certainly take you to court and garnish from your pay check. Quite honestly, I’m surprised there’s been no legal action taken, if you haven’t been paying for 6 months. What kind of loans are we talking about? If it’s an auto loan, they’ll probably repossess your car. If it’s a mortgage, they’ll foreclose on your home.

    Why are you putting money in a savings account rather than paying your bills? That makes no sense. You need to save money, of course, but you can only save what’s left over after you take care of your other responsibilities.

  3. Reply
    Ask M
    March 18, 2013 at 9:42 pm

    only if they find out who your bank is !!!!

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