Bank charges

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Jane_the_Doula
Jane_the_Doula Posts: 3 Newbie
in Budgeting & bank accounts
We bank with Barclays. We have a £1200 overdraft which we are always at the limit of by pay day. We pay charges on that plus have the Travel pack and Tech pack which we also pay for. Our charges total about £60 a month.
We don't use either the packs but it seems if we cancel them we will pay more for the overdraft.
We don't have the money to pay off the overdraft so we can change banks. It's impossible...the charges are ridiculous.
Does anyone have any helpful suggestions please???:(
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Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    If you were able to get a 0% purchases credit card, you could put your spending on that and pay off the overdraft.

    However, living in your overdraft may make it unlikely you could get the card. Try an eligibility checker.
  • firefox1956
    firefox1956 Posts: 1,548 Forumite
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    Reduce your expenditure & get rid of the overdraft.
  • Jane_the_Doula
    Jane_the_Doula Posts: 3 Newbie
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    If it was that simple we would obviously do that. We are not idiots. Unfortunately circumstances we have been through have put us in this position. My gripe is with bank charges which don't help us to get out of this messx
  • Shakin_Steve
    Shakin_Steve Posts: 2,701 Forumite
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    I believe the cost of the two packs is about £18 per month. Because you pay for these packs, the first £250 of your overdraft is fee free. I think the cost of the packs outweighs the reduction in fees you get on your overdraft. I would cancel the packs and I think you will find, although you are paying more in overdraft fees, it won’t be as much as the cost of the packs.
    I came into this world with nothing and I've got most of it left.
  • 18cc
    18cc Posts: 2,120 Forumite
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    That is sound advice - cancel the packs and save more than your extra spending on the overdraft.

    In the short term, see if you can convert the overdraft to something with a lower interest rate eg a personal loan, credit card interest free period etc etc.
  • Dobbibill
    Dobbibill Posts: 4,135 Ambassador
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    Hi - Welcome to the forum.

    Put together an SOA and head over to the DFW board.
    The good posters there will have a look where any savings can be made on your outgoings - they are very good and will look at multiple solutions to help you.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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    Just be better than you were yesterday.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    Jane_the_Doula wrote: »
    We don't have the money to pay off the overdraft so we can change banks.
    You don't need to settle the debt before you leave (by using your own money). Depending on the new bank's assessment you may be granted a matching facility. But before you go down this route you need to get the new account opened and facility agreed before initiating a switch...DO NOT open and switch at the outset before knowing if they've matched the facility.


    Other than being up to the hilt by month end (and then returning to the black on payday?) are there any other gremlins on each of your credit files which you feel would make it not worth considering/trying this approach?
  • Chalkius
    Chalkius Posts: 110 Forumite
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    Cancel both packs. The fee free portion of the overdraft will only be worthwhile if you're between 0-£200 overdrawn. More than that you get normal charges. So unless you actually do spend a sizeable portion of the month in that region overdrawn it doesn't benefit you. That'll save you £20 a month. Over time that'll add up and if you can make economies elsewhere it'll help too.

    I mean, not counting unpaid direct debit fees(I'm assuming you don't miss payments), the maximum you could get charged with that level of overdraft is about £45. (30x£1.50). And I'm assuming you don't actually spend the whole month between £1000-1200 overdrawn so it should be less (again, not accounting for unpaid direct debits as I don't know your situation).

    Other than that if you can manage it properly and can get a reasonable credit card with a good interest free period you can maybe put the debt on there and get out of the cycle of charges to an extent. However if you don't manage it properly it will bite you in the !!!.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    No No No I will not type the reply this post deserves repeat No No No etc etc
  • Jane_the_Doula
    Jane_the_Doula Posts: 3 Newbie
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    jonesMUFCforever wrote: »
    No No No I will not type the reply this post deserves repeat No No No etc etc
    care to explain what you mean???
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