Opening a new current account

spat08

Hello, just looking for some advice..il am probably going to do a full statment of income and outgoings but just wanted to ask a quick question..

I currently have a £1500 overdraft at natwest that never goes anywhere. I got it at uni and since then, it just stays the same. I was just wondering if it would be posiible to open a new current account, stop using the natwest one and instead just pay a regular standing order into it each month to try and pay it off.

I cant afford to pay it all, but this seemed like a way that would eventually pay it off and also id be alot happier starting a zero balance each month, rather than £1500 overdrawn..

any help is appreciated

ShelfStacker_3

No, because NatWest might just revoke the OD if you start a payment plan without telling them. You'd be better off just getting a loan just to repay it then closing the NW account, or a Virgin Money 0% card to transfer the overdraft balance to.

masonic

Do you not think you'd be able to commit to reducing it by a monthly amount while continuing to use the account?

spat08

so they could just take it away? i already have loans and cards, so cant get any more..

was hoping this would be a way of doing it...wat if i kept some direct debits coming out of it, and put in the amount to pay them each month, plus some extra to start paying it off, would they still think its a repayment plan and take it away?

spat08

masonic wrote: »

Do you not think you'd be able to commit to reducing it by a monthly amount while continuing to use the account?

I have tried but find it hard..the o/d is 3000 so i always have the temtptation of spending more, would be nice to take it away. Keep asking for it to be reduced but then it tgoes up again a few months later..

ShelfStacker_3

spat08 wrote: »

so they could just take it away? i already have loans and cards, so cant get any more..

was hoping this would be a way of doing it...wat if i kept some direct debits coming out of it, and put in the amount to pay them each month, plus some extra to start paying it off, would they still think its a repayment plan and take it away?

To be honest, I'd just call them, say you want to pay the OD off and ask to set up a repayment plan, then if that fails THEN think of funny ways to repay the OD. The worst they could do is say no.

SparciaM

If you stop using the Natwest OD and pay into monthly, the only thing that will happen will be that they may revoke the OD, so take it away and leave you over no limit, but then you can call up and explain your situation with their debt management team and set a reducing overdraft.

If they charge you, reclaim any charges back through this site. I had a OD with HSBC as a student and left it reducing by £10pm for 3 years and nothing happened. I actually got HSBC to keep it as student status for 7 years!! and ofcourse 0% for that whole time. I paid it all off and HSBC were none the wiser that I wasn't using the account.

What is the worst that could happen? If you can't pay it back, then they can't make you and they will set up a plan. Obviously, pay as much back as you can each month - or leave 2 dds set up on the account and pay in money each month for those and to clear it down. My bro is doing that with his HSBC account and again, none the wiser.

agsnu

http://www.natwest.com/personal/loans/g1/graduate-loan/interest-free.ashx ?

[Deleted User]

I had an Abbey overdraft of £550, so did my OH.

When OH was out of work and didn't have any regular payments going in his account Abbey cancelled his OD, leaving him owing asap + interest. His JSA that was going in that week was swallowed up and we didn't have any money.

Then, earlier this year I changed my current account and changed all my payments over to new account. I didn't say anything to Abbey but decided to pay them £50/month and each time went into branch and asked them to lower the overdraft by £50 each time, which they did. However after 6 months thay got fed up and cancelled my overdraft on me with no notice, leaving me owing them about £250 asap or be charged ridiculous interest and charges.

Is there a regular direct payment that you could keep with your old account and then lower your OD bit by bit each month? It would show money going in and an active account.
If you changed your account and didn't have any regular payments going in, or if you only lowered it by a small amount each month, be prepared that they could take it all back - could you then find the remaining money quick to avoid interest/charges?

spat08

Thanks for all the tips guys...il have a think becasue I dont want to risk them taking it away. I may just leave all my direct debits there, and transfer in the amount each month plus some more...i need to do a full statement with interest rates so I can see where is cheapest. Could be that i want to use my overdraft as its cheapest form of borrowing. will be back with more information, but again...thanks for the help