Student Overdraft

kap01

Good Afternoon Guys,

Just after a bit of advice, Whilst at university I did the stupid thing of opening more than one student account.

Now I am still in overdraft with two of them:

I use a Lloyds account everyday which is dept free.

NatWest : £1200 in over draft

Barclays £1500 in over draft.

I have just been given £1500k from my grandparents, My question to you is:

If you was to approach each bank and say I can afford to only pay £750 each, would they considering writing off the extra amount if asked? Without effecting my credit history.

kap01

Sorry i have been given £1500 not £1500k !! I wish..

Tixy

Hi Kap

How likely they are to accept a reduced settlement would be based on a number of things - including have you been using the accounts at all recently? Have they requested you repay the overdrafts? Have they put anything negative on your credit report already? Have you been making any repayments to reduce the balance?

If you offer a reduced settlement you would need to get them to put in writing before you pay that the amount is in full & final settlement of the debt and that neither they nor anyone else will chase you further for the debt.

It is likely that if they do accept it they would mark your account on the credit report as - partially settled - or something similar. This would affect your report as other lenders would see that infomation.

Some people also ask the the credit report is marked as settled (not partially settled) but I don't think creditors tvery often agree to do this.

kap01

I have used the accounts for years, apart from putting £5 into each of them per month.

They have not requested for me to pay the OD’S but they are hanging over my head and it went them to be gone, plus the interest is almost £20.00 per month!

My credit report is 100 % clean and I own a property.

If they do mark my report as partial settled how will this affect me buying another property next year?

Should I call the banks or write to them?

kap01

I havent used the accounts ^

kap01

anyone?

fairybird30

I would suggest just paying back one overdraft and then throwing all your spare money at the other until it is paid off.

The bank would be unlikely to write this off as there are no problems and you are not racking up charges, with your own house and looking at buying again soon you are best to just clear these slowly whilst you are in position to do so, then you will have no problems with your credit rating, any official arrangements and writing off of debt usually result in something detrimental on your credit file.

kap01

I think was thinking the same. Thanks.