overdraft and charges wanting rid please help

sparkle678

Hi guys im new and ive just about had enough of my overdraft and was wondering if you could help me.
I know obviously i took the money i should pay it back which i am intending to do this is the only real debt except a catalogue as others have been paid off with a payment plan so there gone.
I will try and explain this best i can, i basically have a overdraft which i occured while being a student over 3 years ago now.
The overdraft was interest free for 3 years the last year and a half ive been paying interest of between £12 and now this month it will be £33.
I am getting fed up with the paying the interest as this could be going to pay it off, also just over the passed 3 months theyve been given my charges of £28 beacuse ive been going over my 2k overdraft limit.
Today i looked at my bank and i'd been charged another £35 due to me purchasing an item earlier in the week which i had the funds for but because of the company not claiming for the money untill friday i went over my overdraft again because of the previous months charges and the interest had gone out leaving me overdrawn which i hadnt accounted for by mistake. (I hope this makes sense).
I am currently in reciept of incapacity benefit im also single with a child under 1.
I spoke to a debt company advice line today who told me to open a new account and tell my current bank i want to pay what i can afford (roughly £50).
I spoke to the bank about a repayment plan that offered me something with insurance of around £80 a month which i cant really afford this is over 5 years. They also offered me another without insurance due to me not working paying £64 back over five years which means paying back triple.
Im struggling to understand the whole concept and they wont talk to my brother to explain it to him. Please could anyone help me.
I just need some reasurance on what to do im not very good with numbers
and im strugling to find a way out and pay it back.
Ive also started reading the information on the main page.

Thanks for reading

GeorgeUK

Basically, the bank is there to make money. That's all they're interested in. It sounds like they tried to sell you a loan.

The advice you've been given is correct from the advice line (hope it was one of the free ones).

First you need to look at your income and expenditure to make sure you can afford the £50 and then get your income paid into a seperate bank account so that the bank can't take it.
https://www.makesenseofcards.com/soacalc.html

Are you in Scotland or England - there are different ways to approach this. You could write to the bank saying you are unable to meet the required payments, request they hold all interest and charges and propose x amount per month repayment. In Scotland there is a Debt arrangement scheme which may be easier to stop the interest and charges with.

There is also an administration order you could look at but as this is through the court we will look at that as a last resort for now.

DoWhatULove-LoveWhatUDo

I agree with George's advice, and I have one further suggestion:

Could you take your brother with you to the branch so he could be there while they speak to you? Or else use speaker phone so that he can hear everything?

It does sound as if they are attempting to sell you a loan which is shameful behaviour on their part.

Opening a new account with a different bank is a good idea. Did you speak to CCCS or Payplan about this?

sparkle678

Hiya thanks alot for the quick replies and thankyou for your advice.
It was one of the free debt advice people i got it off the main forum page there called debt line, ive also rang cccs in which i have a telephone appointment next week which will last an hour.
They advised me to open another account and transfer my income to the new account and all dd etc. Im just worried that having no monies going into the account they will take me to court as there not getting there montly income.
I told them on the phone i would hold back on transfering my money to a new account until i speak to someone about it probably who can explain it over and over until i understand (takes me a while).
Yes the bank have been trying to sell me a loan, i live in England and i can afford £50 a month as im paying just over that in charges and interest alone, even just the interest is £35 at the end of this month.
I just want to put an end to it and start paying it off and feeling better.
Thankyou all again hope you can help.
One other thing is it that easy to open another account?? wont they ask if i already have an account and if i have overdraft etc?

GeorgeUK

They may ask, but if you are just getting a basic account and not credit then there shouldn't really be a problem. Your current bank may not like it, but there's not much they can do about it - especially as you are willing to make repayments to the debt.

CCCS should send you a letter that you can send to the bank stating that you are unable to meet the repayments and make an offer of £50. Also it would aske them to suspend all interest and charges. Some banks take longer than others to do this (if at all) but even if they then pass the debt to a debt collection agency, as long as you are making an offer of payment then there shouldn't be a problem.

That's why the other account is required though - you get your income moved to the other account, then tell your bank about the repayment plan, otherwise the bank may just take any money that goes into your account and you're stuck without any cash.

Try not to worry about it. Nationaldebtline, CCCS and us lot will keep you right and we'll all explain any questions you have as you go along. If unsure about anything, just ask - no matter what it is that's troubling you.

sparkle678

Ok great thanks alot cccs are sending me out some information that i need to fill out before i have my telephone call so obviously i have all the information at hand.
I will sort out a new bank account today and get the ball rolling.
Thankyou all again youve been a great help and i'll post more and let you know whats happening and if i need anymore help.
Im using this site more a more each day.
Thanks again