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    • TwentySomethingGirl
    • By TwentySomethingGirl 20th Mar 17, 10:40 AM
    • 98Posts
    • 278Thanks
    TwentySomethingGirl
    Advice on where to start
    • #1
    • 20th Mar 17, 10:40 AM
    Advice on where to start 20th Mar 17 at 10:40 AM
    Hi

    I'm not in debt myself but I'm going to help a friend deal with their debt and need a bit of advice. Most of her debts are defaulted already and quite old so I'm going to help her set up a self managed DMP. However, she has an overdraft which was originally on a student account but is not any more. This account is the one her pay goes into so each month a bit of the overdraft gets paid and then used again. She's being charged £30 a month for the privilege. How can we go about getting the charges to stop? I was thinking of seeing if she can open another bank account to use day to day and letting the charges push the overdraft over it's limit which presumably would cause it to default and then we can ask for the charges to be frozen. Is there another/better way to do it?

    Thanks in advance
    Mortgage £126746 DEC14 £122423.53 DEC15 £115041.70 DEC16
    MFW2017 #85 £418.40/£2500 12K IN 17 #85 £2200/£12000
    MFW2016 £3614.63/£2500
    MFW2015 £811.60/£1200
Page 1
    • sourcrates
    • By sourcrates 20th Mar 17, 10:50 AM
    • 9,869 Posts
    • 9,648 Thanks
    sourcrates
    • #2
    • 20th Mar 17, 10:50 AM
    • #2
    • 20th Mar 17, 10:50 AM
    Hi,

    Yes, she should open a new basic bank account, with a bank with whom she has no debts.

    Anyone can open a basic account, and there is no credit check.

    Her old account can then be treated as just another debt to be serviced, she should write and ask for the old account to be frozen and interest and charges stopped, so she has a better chance of repaying what she owes.

    As regards her other debts, how old are they approx ?

    Any that are 6 years old or more, that have not been paid in that time ?
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    • TwentySomethingGirl
    • By TwentySomethingGirl 20th Mar 17, 11:03 AM
    • 98 Posts
    • 278 Thanks
    TwentySomethingGirl
    • #3
    • 20th Mar 17, 11:03 AM
    • #3
    • 20th Mar 17, 11:03 AM
    Hi

    Thanks for the reply.

    I don't think any of the debts are 6+. Some are probably approaching that, I know one of them was for a hire purchase car which she thought had been paid (long story) which must have defaulted at least 2 years ago, so the original agreement would have started about 6 years ago. The other debts were a couple of loans and a phone contract which are all from the last 3 or so years. The overdraft is the only debt that hasn't defaulted or been passed to a debt collectors so I want to get the charges stopped or it won't help the debt decrease.
    Mortgage £126746 DEC14 £122423.53 DEC15 £115041.70 DEC16
    MFW2017 #85 £418.40/£2500 12K IN 17 #85 £2200/£12000
    MFW2016 £3614.63/£2500
    MFW2015 £811.60/£1200
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