£7400 overdraft & £17300 loan - doomed

Trajan

My parents don't know. I think I will manage to pay my loans and overdraft but I just need to make the repayment of £700 at the end of this month. I applied for the natwest credit card last week, hopefully I can use the cash from the card to pay the £700. The only problem is the overdraft which is £7400. Its gonna take a long time to pay it all off. This is what worries me, too much interest. Can I claim these interest back?

Unfortunately, its not possible to get the money back from my friend because he is not here right now. He is a good songwriter and musician and he is trying to do an album. This is the reason I gave him the money.

I got paperwork but if he doesn't have the money I can't do anything. I have to wait for him to finish his album. As soon as he starts making money he will pay it back, but I don't when. It can be 1 year or 2 years. I still trust him.

RAS

You cannot claim back interest, you can reclaim charges but bank claims are currently halted.

Since you are paying next to nothing towards you hosehold expenses, you really need to cut out all your own expnditure as much as possible, sell stuff if you have anything and use some of these ideas http://www.moneysavingexpert.com/protect/make-money

Also, can you get a second job?

Flower08

I really wouldnt recommend getting a credit card to pay for your loan - that will just add to your debt (not sure if others would agree with me here). Do you not have anything that you can sell to raise these funds?

bank_of_slate

Trajan wrote: »

They don't know anything. :eek: Unfortunately, I have been a victim of my friend. I gave it to him for musical purposes. I don't know when or If ever I will have my moneyback.:eek:

I can do overtime but I already included some overtime on top of my wages, but I still can get a bit higher.

Since I work for London Underground, drinks and papers are free. I bring my lunch from home, so I don't spend much.

I only have a bank account with Natwest.

I have got to make a repayment of £700 at the end of this month but I don't have money. My overdraft limit is £7500, and I used £7400 of that. So I have to use the natwest credit card this money and pay it off, otherwise I will go into unauthorised overdraft. I receive my wages every 4 weeks so my next wages will be on 8/10/08

I thinking of opening an account with another bank but If I start receiving my wages into another bank account would it not cause any problems for my loans and overdraft.
Would it count as a salary If I were to transfer the salary into another bank account online every month?
What bank do you recommend?

http://forums.moneysavingexpert.com/....html?t=474254
Follow above thread to look at other possible bank accounts!

Oh my god!
...Linda xx

bank_of_slate

I have asked one of the CCCS advisers to come over to look at your thread and advise.
...Linda xx

bank_of_slate

BUMP!
...Linda xx

CCCS_Sarah

Hi Trajan,

Sorry for the delay in replying to your post.

I would agree with other people’s posts – you need to open a basic bank account as soon as possible with a bank where you have no debts and arrange to have your wages paid into this account.

I would say don’t use credit to pay credit! If possible speak to your bank and advice them that you don’t have enough money to make this months payment and see if they are willing to come to an arrangement.

If not don’t worry, pay what you can this month and then split the remainder over the next couple of months (from what I can see from your SOA, you have £479 after paying your contractual payments so would take you 2 months to catch up).

As you have a lot of surplus in your budget, have you taken everything into account that you payout for? If so, keep a spending diary of everything, this may help in future budgeting.

Hope this makes sense, feel free to PM me.

Sarah

mrcow

Trajan,

Just bumping this thread from your thread on the loans board. Have you done as advised yet?

I think the best advice you've had so far is to get rid of the credit card. Do not be tempted to use it to pay off the loan as you are only making a terrible situation worse. Cut up the card and cancel the account. If it's the one thing you do today about your debts, it will be a very positive move.

Call your loan company nowif they are open and tell them that you can't pay them this month. See what they say.

It's a start at least.

bank_of_slate

Trajan, come back and let us know how you're going on please
...Linda xx