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overdraft help

Please help, all advise welcome.
Last June i was very sill when it came to money and i have online banking, i tried to apply for an overdraft just upto £1000 and it let me do it straight away so i tried for more and more and more! i now have an overdraft of £6000. Not once did my bank contact me to see if i could afford to pay this back, whick i cant! i know its my own silly fault but i kept pushing it. I am now wondering if theres anyway i can stop the interest on this so i can slowly pay it back. i know that it can be done with reclaiming bank charges, any help please as i am at my wits end and its all i can think about every day. Thank you

Comments

  • OliveOyl_2
    OliveOyl_2 Posts: 3,506 Forumite
    I don't know about freezing interest, I think you may have to be on a payment plan to get that. If you contact your bank they may offer to convert it to a loan, but beware of this path.
    • it won't deal with the root of your spending and getting into debt - this is something you urgently need to address - Why you are in debt. Otherwise it is very difficult not to run up another overdraft ;)
    • You may be able to pay off your overdraft faster than a loan term - and this may cost you less in interest.
    To make a decision you need to know what your overdraft is costing you, and how much you can throw at this debt per month to get rid of it fastest.

    You may wish to post up a SOA so that the good peeps here can advise where you can find extra money in your budget to pay this off fastest.

    If you treat this overdraft as a debt you wish to repay, then I would suggest that you do what you did before, only in reverse. As you pay it off, go on-line and reduce the credit available. :D

    Good luck
  • LeeSouthEast
    LeeSouthEast Posts: 3,822 Forumite
    Part of the Furniture Combo Breaker Debt-free and Proud!
    Welcome to MSE! You're in the right place for help and support.

    Just to echo what has been said above - consider posting an SOA can we can help you work out ways of saving money in general. You can find an online generator here. Secondly, speak to your lender. The loan conversion is a good idea, but you will need to address your spending issues separately :)

    Lee
    Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
    Do something amazing. GIVE BLOOD.
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