Calling in overdrafts

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browneyedgirl2008
browneyedgirl2008 Posts: 1 Newbie
in Budgeting & bank accounts
Hi, I've had a letter from my bank saying that they want my overdraft repaying within 30 days...there is no way i can do this and I can't afford to take out a loan to pay it off. Any idea's on what I can do please?

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  • zenmaster
    zenmaster Posts: 3,151 Forumite
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    Speak to them.

    They will most likely make an arrangement for you to pay it off monthly.
  • stclair
    stclair Posts: 6,844 Forumite
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    Overdrafts are repayable on demand im sorry to say...

    However if you contact your bank you can come to some agreement to pay them back at an affordable rate.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • worried_jim
    worried_jim Posts: 11,631 Forumite
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    Open another bank account with a bank that has no connection to the one you are using now. If you are not able to come to an agreement with your current bank about an affordable repayment schedule cease using it all together and start with your new account. Pay what you can afford monthly into your overdraft account but use it for nothing else.
  • happy_bunny_2
    happy_bunny_2 Posts: 4,488 Forumite
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    Before speaking to your bank, you may want to make sure you have enough cash for the rest of the month.

    Some banks have a clause that says they will usually give you 30 days notice to withdraw any overdraft unless they suspect you can't meet your commitments.

    Wording is a bit vague, but if you say you can't afford to pay it off and you are not at your limit, they may just remove it there and then. You could appeal and argue fairness etc, but ultimately you will have no cash.

    Open another account for wages etc, then talk to them. Worst case if they won't come to an arrangemeent is they will issue a default and maybe pass to a DCA, who will likely accept offers of payment.
    :beer:
  • meer53
    meer53 Posts: 10,217 Forumite
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    worried_jim wrote: »
    Open another bank account with a bank that has no connection to the one you are using now. If you are not able to come to an agreement with your current bank about an affordable repayment schedule cease using it all together and start with your new account. Pay what you can afford monthly into your overdraft account but use it for nothing else.

    If the OP does this, the bank will probably remove the overdraft straight away and demand repayment of whats owed. Not agood idea really.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    meer53 wrote: »
    If the OP does this, the bank will probably remove the overdraft straight away and demand repayment of whats owed. Not agood idea really.
    When you've priority debts (rent, council tax, etc), mouths to feed, and no hope of paying it off in 30 days let alone immediately...then needs must I'm afraid!

    Under the circumstances outlined by 'worried jim', it's a very good idea in my opinion. :)
  • worried_jim
    worried_jim Posts: 11,631 Forumite
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    meer53 wrote: »
    If the OP does this, the bank will probably remove the overdraft straight away and demand repayment of whats owed. Not agood idea really.

    Well this is the advice that all the debt charities give. It is known as having a "parachute account" as it helps you down gently. But you are an expert so.......
  • opinions4u
    opinions4u Posts: 19,411 Forumite
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    meer53 wrote: »
    If the OP does this, the bank will probably remove the overdraft straight away and demand repayment of whats owed. Not agood idea really.
    Broad as it's long isn't it?

    If the OP can't pay, they can't pay.

    But surely better to have wages elsewhere and agree with the bank how to pay the debt down over an achievable timescale.
  • meer53
    meer53 Posts: 10,217 Forumite
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    worried_jim wrote: »
    Open another bank account with a bank that has no connection to the one you are using now. If you are not able to come to an agreement with your current bank about an affordable repayment schedule cease using it all together and start with your new account. Pay what you can afford monthly into your overdraft account but use it for nothing else.

    I meant that paying what the OP can afford monthly into the account, and not using it wasn't a good idea without agreeing something with their bank as thats when they will just remove the overdraft and demand repayment. It's a good idea to open another bank account for bills etc and to have as a back up for when their original account is closed or frozen. We all know that this is what CCCS and similar companies will recommend.
  • Yorkie1
    Yorkie1 Posts: 11,555 Forumite
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    browneyedgirl2008 wrote: »
    Hi, I've had a letter from my bank saying that they want my overdraft repaying within 30 days...there is no way i can do this and I can't afford to take out a loan to pay it off. Any idea's on what I can do please?

    Others have advised on your specific question, but it might be worth you doing a statement of affairs on the debt free wannabee board on here - they're pretty good at finding extra pennies and pounds where you couldn't do so.
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