Overdrawn on Overdraft - what to do....?

The_Golden_Goose

Dear Fellow DFW's,

I am in a right pickle.

Currently am £200 over on my Overdraft and I am somewhat anxious about this as you can imagine. I can already see my bank rubbing their hands together with glee as they are thinking, whoppee, another £50 in the pot.

My question is, do I extend my OD (and incur charges for doing so) or do I move to another bank account? This has its own pitfalls I know as my current bank will ask for the outstanding overdraft amount back in one fell swoop - won't they? Or not? Anyone else got any experience of this?

TBH, I really need some advice on how to tackle this particular situation?

I am applying for a second job at the mo and have sent off one application but will keep my eyes open for any other local opportunities....

Was feeling very positive about my DFW journey but every now and again something comes along and pokes me in the eye to remind me that my debt of hell is a reality.

I hope some of you DFW's can offer me some advice. Thanks for your time!

The_Golden_Goose

Bump

BUMP

BUUUUUUUUUUMPP!!

Lemon_Tree

a tricky one, you are going to incurr big charges and interest by being over your limit therefore in the short term i would ask to increase it to cover this amount. May pay to check your accounts to see if other things are due out and factor this in. Fingers crossed they will actually raise it.
In the long term you need to sit down and figure out why you went over, there's a few banks which are using things like this as an excuse to just cancel an overdraft which would be a real knock. You need to figure out how you will pay for the charges (if they're levied next month) so it doesn't happen again and see if there's any funds you can transfer in from elsewhere to help.
You can open a new account and then just send back to your old account what you can afford to pay off the overdraft each month but this isn't going to happen quickly so you're probably best looking at the short term options as well.

Hope this helps you make your decision, i'm not intending to be harsh but this is the thinks i thought about when i used to go up near my limit and it looked like i was going to go over it.

The_Golden_Goose

Thank you Lemon Tree.

I have extended my OD to £1750 (which they will charge me £25 for doing so) but I think I know why I have gone over - normally I always just fall short of hitting the limit.

Sadly, I don't have any other funds to put into this account, no savings, no nothing. Hence I need to get it sorted PDQ.

I think I will open another bank account just in case (any ideas on who is a good bank to go with?)..... though I think FD won't withdraw my account as they seem to be making a tidy sum out of me due to my inability to manage my blooming finances.

Many thanks for answering!

K4ylee

Hi Golden Goose,

This has happened to me this month as well.

I have 3 bank accounts and a credit card with the same bank, hence 2 overdraft facilities and have went over them both this month accumulating a whopping £350 in bank charges!!

Have u decided whether to open a new account with another bank?

I'm thinking this could be the only way for me to effectively deal with my own problem - would be interested to know what your plans were for some advice for myself...

I know this doesn't really help u, but at least now u know ur not alone.. x

The_Golden_Goose

Hi K4ylee!

I am wondering about opening another account with another bank (but one where I earn cashback for doing so).

Before I do this, I need to work out how much I have to then transfer to FD to make sure I meet all my Direct Debits and to make sure I dont go over my OD limit.

Unless I can take out the cash from my new account and use that OD (if its 0%) and put it in my FD account to try and clear it........ and then slowly sort out building up the new account so that ends up with no overdraft?

Confused.com?

I certainly am! LOL!

I think I know what I mean......

Hate being rubbish with money and hate owing people so much ££ and then hate it even more that I am giving away even more ££ in charges. If only this had been the first time. Its not.

Arrrrghhhhh.

K4ylee

Hi Golden Goose,

I am thinking that I could open a new account and set up a DD into the old one to pay off the OD, would the bank ask for the whole lot to be paid back if there's no salary going in every month?

Help.. I need help!
K x

Deep_In_Debt

Hi
I think you should open another account and have all your money, DDs SO's etc transferred over and write to your existing bank with your income and expenditure and offer to pay them a certain amount each month. Most banks are quite accommodating if they see you are trying to deal with the problem.

Good luck to you both.

K4ylee

Hiya,
Sounds like a plan... I'm going to look into bank accounts.. thanks!
K x

The_Golden_Goose

K4ylee wrote: »

Hi Golden Goose,

I am thinking that I could open a new account and set up a DD into the old one to pay off the OD, would the bank ask for the whole lot to be paid back if there's no salary going in every month?

Help.. I need help!
K x

I think they might and they can do this..........

However, I think DeepInDebt's advice is good.

I am going to open another bank account. What will be will be.....

The_Golden_Goose

K4ylee wrote: »

Hiya,
Sounds like a plan... I'm going to look into bank accounts.. thanks!
K x

Sign up to a Cashback site like WePromiseTo or MoneyBackMadness or Quidco, cos if you open a A&L account, the c/b site gives you £50 and A&L give you £100!

HTH