Halifax overdraft problem

nickismee

Hey ya..

As the title say's, im having a bit of a problem with regards to my overdraft.

I have an overdraft which is due to expire in Feb 09.. Since taking out the overdraft our finances have dramatically changed, I have stopped working to look after our 2 toddlers and my husband is now on part time hours. I cannot afford to pay off the whole overdraft in one lump sum.

I rang telephone banking today to see if they could help me set up a repayment plan and i was advised to speak to some one inbranch, which i did, to be told to ring another number and they would be able to help me.. i rang the number and they can't help.

Im at a loss what to do now. I have no problems paying the overdraft back, i owe the money.. im a bit worried come feb they will take the overdraft back and as we "live" in the OD all the money which will go in to the account will go straight to paying the OD off. We only have tax credits and child benefit go in this account now as my husband is paid in cash each week. If they were to take the money for the OD it would take at least 4 weeks to pay off, this would cause us major problems as this money is used on bills and food..

I thought if i try to set up this plan early it should all be in place for feb when the OD is closed.. I just want to get this sorted out, but halifax are making this a hard task to do...

Quietgirl

Personally I would open an account with another bank and have your tax credits etc paid into that. Then you can pay so much towards clearing your overdraft on the Halifax account without them taking all your benefit money.

nickismee

Thats a good plan and I do have an account with natwest. But I ideally would like to stay with halifax as I have a visa card with them and just a solo with natwest. I used my card to pay bills online and i find visa more secure than solo.

I doubt i would get another account with visa at the moment due to credit history.

nickismee

Sorry, are tax credits and child benefit classed as benefit money, i thought it was just IS, HB, CB, JSA etc that were classed as benefits. If TC and CH are classed as benefits, then im sure halifax wouldn't be able to touch them unless i said its ok to..

nwc389

Have you checked if the overdraft is still recommended on the account ?
You are able to change the overdraft downwards each month if need be if the overdraft is still available to you and you can then reduce it at your own pace , you do not have to wait till February to do this.
Hope you get sorted ok

nickismee

I didn't know about this, but if i reduce the OD each month by the amount i can afford, it won't be cleared by feb..

I do have a recommended OD amount, which is £400 less then what i have now.

I sound so negative, sorry. I do appreciate all the advise that i have been or will be given..

nwc389

Can you get the overdraft down to the recommended limit by the expiry date ?

nickismee

No chance, lol.. if i were to do that, i would have to pay over £100 a month towards it, i haven't got that type of money.

opinions4u

Try calling them on

0870 850 1298

Make sure you ask them to call you back so they can pay for the cost of any longer call that may be needed!

I think that's the best number to get the right help.

nickismee

Thank you..

Just rang them and i have to ring back in about 4 weeks, closer to feb.

They have advied me to speak to some one from CAB, so they can help me and hopefully be able to send a letter to halifax with a monthly payment i can afford and also to ask them stop interest charges.

Also, my account will be "frozen" until the OD is cleared, which is a bit of a pain. I use my cheque book weekly, and as stated before, i prefer visa to solo as its more secure!!

They really don't like making things easy!!!

KAB_3

2 to 3 weeks before your current overdraft expires you should receive a letter advising you of your new limit. From what you have said it sounds as if this could be £400 less than your existing limit, although this figure may change as I believe recommended limits are revised each month. On the letter there may be details of an appeals process, this is the time to contact them to discuss a reducing overdraft arrangement. No point worrying before then, so enjoy the holidays period .... but don't overspend.