How Monzo Bank Could Help You Out of Debt

In the new age of digital banking, high street banks struggle to keep up with how fast-paced the new kids on the block can be when it comes to new and innovative ways of managing your money. Let me introduce you to Monzo Bank!

If you haven’t already heard of them, they (in my opinion) lead the way in making banking simple. With their #NoBarriersToBanking approach and unique ways of separating your money to make it work for you, I can definitely say as a “Full Monzo” user that it’s one of the best banks around.

So how can it help manage your money better to help you with debt, or just to help with your general day to day finances?

Committed Spending

Monzo puts your Standing Order and Direct Debit payments to one side as a “Committed Spending” compartment so you can see what money is for your rent/mortgage, utility bills etc. separately to the money you have available.

Spending Budgets

Set yourself spending budgets so you can keep an eye on those coffees, takeaways, clothing, days out to the cinema and so on without going overboard. You can even set the maximum amount you want to spend too.


Put money aside into different pots, allowing you to save for the things you want – whether it be for your holidays, rainy days or general savings, you’ll have free access to your pots unless you lock them down until a certain date if you’re saving for something specific and don’t want to run the risk of transferring your money back if you’re a compulsive buyer (because we all like to treat ourselves to them new shoes, a night out on the town or a coffee in the morning right?) You can even set Standing Orders up to transfer money into your pots on payday.

Set Your Payday

Speaking of payday, you can set which date you get paid on so you can budget better. Monzo will automatically set the amounts you pay each month aside so you know exactly what you have left until your next wage hits your account!

Everything Else!

There’s so many other benefits of being with Monzo, especially as they’re always testing new things to better suit us all. Whilst writing this article, they’ve already started rolling out something they call “Monzo Plus” which will offer some of the usual things a typical packaged bank account that other high street banks provide, the big difference is that you can actually pick and choose what you want so you’re not paying for the products you don’t need, e.g. if you don’t go on holiday outside of the UK, you can choose not to have travel insurance as part of your package. This means you only pay for what you choose to have.

I tried Monzo to test the water back in December 2018 thinking it may be a good secondary account to have, but, within a couple of weeks I was hooked and decided to close down my old account to move everything over to Monzo completely, and I can honestly say I don’t regret it one bit!

Another great thing (as if there isn’t enough already) is that you can freeze your card if it’s lost or stolen and defrost it if you find it again.

Spending abroad is a breeze due to the fact they use Mastercard’s best rates, and there’s no spending charges or limits (apart from a 3% withdrawal fee after the first £200 worth of the local currency has been withdrawn from an ATM) whilst you’re away too, making it a great travel companion!

And if you’re not completely sold on switching, you can be reassured that your money with Monzo is protected by the FSCS up to £85,000. They’re also authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA too so you have piece of mind when you sign up. Plus, they offer the Current Account Switch Guarantee so can change to Monzo with ease.

Want to sign up to Monzo? Follow my link and we’ll both receive a £5 bonus when you spend for the first time on your new Monzo card! Alternatively, you can download the Monzo app on the App Store or on the Google Play store.

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