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£7400 overdraft & £17300 loan - doomed

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Trajan
Trajan Posts: 32 Forumite
in Debt-free wannabe
Hi to all,

I am currently having problems with my Natwest loan and overdraft.

I borrowed £17,300 from NatWest in April 08; APR is 10.1 % over 28 months.

I also used my overdraft limit up to £7400 (max limit is £7500) few days ago. The APR is 17.73 %. I will be paying big interest every month I know.

I have to make a loan repayment by the end of this month and I only have £100 overdraft limit left.

I went to the bank to top up my loan to pay the overdraft back, but I was declined because I made 5-6 applications previously to top up my loan within 4 months. The bank manager said I made too many applications and should wait 6 months before I can try again.

My credit score is not good either. It might be “fair”.

Note: I only have a bank account with NatWest, and about to have a Natwest credit card within a week. I don't have any other bank account or credit card.

Last week, before I used my overdraft, I applied for the NatWest credit card.

They gave a limit of £1550. As a back up I applied for the credit card because I knew I was going to use the overdraft limit. I am thinking of using my Credit Card when it arrives to make my monthly loan repayment. Hopefully, I will receive the credit card before the end of this month.


Can someone please offer advice about what I can do to reduce my payments?

What credit cards I can apply for? Which companies would accept me with my fair credit score?

To make my loan repayment what can I do with the Natwest credit card? Can I do balance transfer to my current account?

How can I reduce my overdraft interest? Can I claim them back?
«13

Comments

  • bank_of_slate
    bank_of_slate Posts: 12,922 Forumite
    10,000 Posts Combo Breaker
    Hi Trajan and welcome to the board.

    Can you complete an SOA or statement of accounts for us? I'll help us to advise and support you better?

    The board is a little quiet today so don't worry if you don't get many responses just yet, do keep posting and checking back!
    We're here to help you!
    ...Linda xx
    It's easy to give in to that negative voice that chants "cant do it" BUT we lift each other up.
    We dont count all the runners ahead of us & feel intimidated.
    Instead we look back proudly at our journey, our personal struggle & determination & remember that there are those that never even attempt to reach the starting line.
  • bank_of_slate
    bank_of_slate Posts: 12,922 Forumite
    10,000 Posts Combo Breaker
    Use this link to go to the SOA
    http://www.makesenseofcards.com/soacalc.html

    You can post it up on the forum when you're done
    ...Linda xx
    It's easy to give in to that negative voice that chants "cant do it" BUT we lift each other up.
    We dont count all the runners ahead of us & feel intimidated.
    Instead we look back proudly at our journey, our personal struggle & determination & remember that there are those that never even attempt to reach the starting line.
  • bank_of_slate
    bank_of_slate Posts: 12,922 Forumite
    10,000 Posts Combo Breaker
    I would seriously reconsider paying the loan, topping up your current account etc... with a credit card!!!!
    It will count as a cash withdrawal which will be charged at a massive interest rate!
    Check out the card application information to see what the interest rate would be
    ...Linda xx
    It's easy to give in to that negative voice that chants "cant do it" BUT we lift each other up.
    We dont count all the runners ahead of us & feel intimidated.
    Instead we look back proudly at our journey, our personal struggle & determination & remember that there are those that never even attempt to reach the starting line.
  • Trajan
    Trajan Posts: 32 Forumite
    What's SOA or statement of accounts? Is it a form or do you want me to give the amounts I owe to my bank?
  • Flower08
    Flower08 Posts: 4,771 Forumite
    it basically shows what money you have coming in and what you have going out, if you follow that link it will give you a template to work from
    i am sure some more people will be along soon to help you
    Biggest Loser Weight Loss: 13 / 20 lb
  • Trajan
    Trajan Posts: 32 Forumite
    [tt]Statement of Affairs and Personal Balance Sheet

    Monthly Income Details
    Monthly income after tax................ 1550
    Partners monthly income after tax....... 0
    Benefits................................ 142
    Other income............................ 0
    Total monthly income.................... 1692

    Monthly Expense Details
    Mortgage................................ 0
    Secured loan repayments................. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 7
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 6
    Telephone (land line)................... 0
    Mobile phone............................ 20
    TV Licence.............................. 0
    Satellite/Cable TV...................... 0
    Internet Services....................... 18
    Groceries etc. ......................... 20
    Clothing................................ 20
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 7
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    (Unnamed monthly expense)............... 0
    pocket money for brother................ 80
    Union membership........................ 15
    Total monthly expenses.................. 213

    Assets
    Cash.................................... 40
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 40

    No Secured Debt

    Unsecured Debts
    Description....................Debt......Monthly...APR
    personal loan..................15050.....700.......10.1
    overdraft......................7400......300.......17.73
    Total unsecured debts..........22450.....1000......-

    Monthly Budget Summary
    Total monthly income.................... 1,692
    Expenses (including secured debts)....... 213
    Available for debt repayments........... 1,479
    Monthly UNsecured debt repayments....... 1,000
    Surplus(deficit if negative)............ 479

    Personal Balance Sheet Summary
    Total assets (things you own)........... 40
    Total Secured debt...................... -0
    Total Unsecured debt.................... -22,450
    Net Assets.............................. -22,410
  • Flower08
    Flower08 Posts: 4,771 Forumite
    do you not pay any rent or mortgage? according to this you have £1539 to pay towards your debts...
    sorry i cant be much help - i am fairly new at this myself - however i am sure now you have posted you soa someone will be along in no time to look through it and give you their opinions! well done for taking the first step
    Biggest Loser Weight Loss: 13 / 20 lb
  • bank_of_slate
    bank_of_slate Posts: 12,922 Forumite
    10,000 Posts Combo Breaker
    Trajan wrote: »
    [tt]Statement of Affairs and Personal Balance Sheet

    Monthly Income Details
    Monthly income after tax................ 1550
    Partners monthly income after tax....... 0
    Benefits................................ 142
    Other income............................ 0
    Total monthly income.................... 1692

    Monthly Expense Details
    Mortgage................................ 0 No mortgage/rent per month?
    Secured loan repayments................. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0 ?
    Electricity............................. 7 ?
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 6 per month? Are you on a meter?
    Telephone (land line)................... 0 no home phone?
    Mobile phone............................ 20
    TV Licence.............................. 0 No TV?
    Satellite/Cable TV...................... 0
    Internet Services....................... 18
    Groceries etc. ......................... 0 Food shopping needs to be included
    Clothing................................ 20
    Petrol/diesel........................... 0 no cars?
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0 No taxi, train or bus fares?
    Childcare/nursery....................... 0 no kids?
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 7
    Contents insurance...................... 0 ???
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 0
    (Unnamed monthly expense)............... 0
    pocket money for brother................ 40 ?????????
    Union membership........................ 15
    Total monthly expenses.................. 153

    Assets
    Cash.................................... 100
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 100

    No Secured Debt

    Unsecured Debts
    Description....................Debt......Monthly...APR
    personal loan..................15050.....700.......10.1 Was this to consolidate previous debts? Is PPI included?
    overdraft......................7400......300.......17.73 Amazed they have allowed this when compared to your salary
    Total unsecured debts..........22450.....1000......-

    Monthly Budget Summary
    Total monthly income.................... 1,692
    Expenses (including secured debts)....... 153
    Available for debt repayments........... 1,539
    Monthly UNsecured debt repayments....... 1,000
    Surplus(deficit if negative)............ 539

    Personal Balance Sheet Summary
    Total assets (things you own)........... 100
    Total Secured debt...................... -0
    Total Unsecured debt.................... -22,450
    Net Assets.............................. -22,350


    There seems to be a few things missing from your SOA, what about rent/board or a mortgage, food shopping, car or travel costs?
    ...Linda xx
    It's easy to give in to that negative voice that chants "cant do it" BUT we lift each other up.
    We dont count all the runners ahead of us & feel intimidated.
    Instead we look back proudly at our journey, our personal struggle & determination & remember that there are those that never even attempt to reach the starting line.
  • Trajan
    Trajan Posts: 32 Forumite
    I live my parents so I don't pay for the food shopping. No mortgage, no rent. No car.I work for Transport for London, no travel expenses.
  • bank_of_slate
    bank_of_slate Posts: 12,922 Forumite
    10,000 Posts Combo Breaker
    Trajan wrote: »
    I live my parents so I don't pay for the food shopping. No mortgage, no rent. No car.I work for Transport for London, no travel expenses.

    Are your parents aware of your situation at all?

    Can you do more overtime at work?

    And what about daily spending? like a sandwich here, a coffee or a newspaper there, this is where many people find unaccounted funds literally disappearing every month!
    ...Linda xx
    It's easy to give in to that negative voice that chants "cant do it" BUT we lift each other up.
    We dont count all the runners ahead of us & feel intimidated.
    Instead we look back proudly at our journey, our personal struggle & determination & remember that there are those that never even attempt to reach the starting line.
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