Student overdraft update - repayment plan

Miss_J

I have bitten the bullet this morning and contacted Halifax about my Student overdraft which is due to drop off my account in August (i graduated in September 2008). What they have said to me today is that they will set up a payment plan on the account, so that I need to decide to pay a regular amount into the account and each month the overdraft on this account will reduce by this amount. I asked if this will affect my credit rating and they have said that it will show on my credit file as being in arrears. My overdraft limit is £2750 and now that I am working I can pay it back at an agreed rate each month however I can't afford to pay back the whole amount in one go. How badly is this going to affect my credit rating?

GeorgeUK

Just bumping

Is your wage paid into a different bank or still into a BOS account?
If nobody else replies, i'd advise asking nationaldebtline about how this will impact your credit rating. I think it will be treated the same as any other account in arrears - the same as if you were on a DMP. This usually takes a while to clear up on the credit file (just my opinion though - not based on experience).

hieveryone

I'd also be looking to move bank. RBS and I'm sure a couple of others don't withdraw the overdraft as soon as you leave uni - infact you can keep it for up to 3 years interest free, or get an interest free loan to pay it off.

Miss_J

Many thanks to both of you. Hadn't thought about phoning national debt line, so will try that. Halifax confused me with mentioning going onto a payment plan cos at the moment my OD shows on my credit report and shows that it's within the limit, they've already said that the account will stay open and that I need to make payments into it each month and they will reduce the OD each month in accordance with my payment plan, so I just don't understand why it will not show as a reducing amount on my credit report each month rather than as being over my limit, but it's a good idea to check with National Debt line so that's my next thing to do. Not sure if I could change it to another bank account, I have another main current account, which my salary is paid into which also has an overdraft on it, which I have had for years so I think that would stop me getting another bank account opened with another lender. Also I have recently been turned down for a loan by my current account lender so think I won't have any chance with another company.