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  • FIRST POST
    • GC1987
    • By GC1987 11th Oct 16, 12:49 PM
    • 7Posts
    • 4Thanks
    GC1987
    Overdraft
    • #1
    • 11th Oct 16, 12:49 PM
    Overdraft 11th Oct 16 at 12:49 PM
    Hello,

    Hope this is in the right place. I was looking for some advice on reducing my overdraft (with ulster Bank) I've heard of a few people talking about 'restructuring' their accounts where the overdraft becomes like a loan that is paid off in monthly installments. Does it look worse to have a loan being paid off or an overdraft on your credit file?

    Thanks in advance.
Page 1
    • sourcrates
    • By sourcrates 11th Oct 16, 1:04 PM
    • 8,404 Posts
    • 8,222 Thanks
    sourcrates
    • #2
    • 11th Oct 16, 1:04 PM
    • #2
    • 11th Oct 16, 1:04 PM
    Hello,

    Hope this is in the right place. I was looking for some advice on reducing my overdraft (with ulster Bank) I've heard of a few people talking about 'restructuring' their accounts where the overdraft becomes like a loan that is paid off in monthly installments. Does it look worse to have a loan being paid off or an overdraft on your credit file?

    Thanks in advance.
    Originally posted by GC1987
    Hi,

    It would depend how your bank views the matter.

    If the OD is unmanageable, you should write to your bank explaining your position, ask them to freeze interest, and make them an offer to repay the debt monthly.

    They may continue to mark your file as ok, or they may apply "AP" markers (arrangement to pay).

    Either way, what your credit file looks like should not be your top priority, making an affordable arrangement with your bank is top of the list.

    For free debt advice please call National Debtline on
    0808 808 4000
    Monday to Friday
    9am to 9pm
    Saturday 9.30am to 1pm
    • GC1987
    • By GC1987 11th Oct 16, 3:01 PM
    • 7 Posts
    • 4 Thanks
    GC1987
    • #3
    • 11th Oct 16, 3:01 PM
    • #3
    • 11th Oct 16, 3:01 PM
    Thank you, I'll speak to them.
  • National Debtline
    • #4
    • 11th Oct 16, 3:40 PM
    • #4
    • 11th Oct 16, 3:40 PM
    Hi GC1987,


    If you find that you 'live' in your overdraft then I would suggest changing banks. Open a new account with a different bank (no overdraft) and then repay the overdraft monthly based what you can afford. You should do a SOA to show the full situation. This will give you better control of your money and you will be able to see the debt decreasing monthly.

    The risk with this is, if the bank calls the overdraft in and you cannot pay them the remaining amount in a lump sum, they could mark your credit file with a default. However, the bigger risk would be, if the bank calls the overdraft back just after you have been paid and you are still banking with them. They are within their rights to do this with very little notice, and, if they did, then you would lose your money for the month. The safest thing to do is change banks (and then post a SOA for more help). Good luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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