Hi freshstart2013.

Being in a trust deed doesn't restrict you from taking out further credit.

Whether it's a good idea is a different question of course. A trustee will not normally be able to make any allowance to help a client to repay new debts.

Thanks for the reassurance 🙂 I am going to phone tomorrow to reduce to £250 anyway..just wanted peace of mind..thanks!

The only problem might be if Clydesdale find out that you are in a Trust Deed and close your account without notice and then demand immediate repayment of your overdraft (this happened to me with First Direct)

Hi freshstart2013.

Fcwalker makes a really good point.

If you're being offered an overdraft you're almost certainly using a current account that isn't available to people currently in protected trust deeds.

This might never come to light or become a problem, but it's also possible that your account might suddenly be suspended leaving you high and dry if the bank learns about the trust deed.

Do you think I should still phone to reduce the overdraft or just leave it but try keep it at £300 credit?

Hi freshstart2013.

My only advice here would be to consider opening a back-up current account that you can use if this one is closed by Clydesdale.

I always think it is wise to have a back up account. better to have it and not need it, rather than the other way about.

Re the credit thing, it is a common belief that you can't obtain credit in a Trust Deed, however this only applies to sequestration.

Mark