Paying back student overdraft!

charles7_2

I am in my third year of studying and Halifax have contacted me saying they have taken away my £1000 interest free overdraft, and effectively i owe them 1000 now.
They then agreed to set up a payment plan which would stop any interest on the account. I've never had to do a repayment plan thing before and when they rang and asked how much i can pay in every month I said £80, but I really don't think I can pay that much a month as im still a student and have lots of other things to pay off this year too, I just said £80 at the time because I wasnt prepared for the call (gave me a shock to know my overdraft was being withdrawn just like that) and I thought if i said something really low like £20 a month they would get angry with me and demand the money in one go or something.

I have to pay my first £80 at the end of August, but cant even manage this really and really need to change my plan to something like £30 a month, then pay in bigger amounts everynow and then if i feel i can or something comes up (like a job.)

I need some advice on how or if i can change the payment plan to less a month, if i ring them saying i can only pay £20 or £30 a month will they be fine with that, or will they say no the plan for £80 a month has already been agreed and cannot be changed or something? And what is the best way to ask/tell them, should i ring up or write to them? And when i do what manner should i take, be really nice or sound angry?

Sorry for all the questions, just want to get this absolutely right because if i can change my plan to £20 or £30 a month I will be able to sleep better at night!!!

Thanks people!

BeautyandtheBeast_3

Hi and welcome im surprised that Halifax are contacting you NOW. you have even finished Uni yet? (Have you) Therefore you should still be in Student terms shouldnt you? If it was me i would ring them back up and ask why they are taking it away and remind them that you have another year left of studying (if thats right?). Chin up - what you studying?

charles7_2

Hey thanks, yes i do indeed have 1 year of studying left in Animation : )
I did ask why they are taking it away on the phone and they said because i haven't been putting enough money in. This has also happened with another account, but i managed to pay in a big amount on the day of the threat which made them happy again and kept my overdraft on (for a bit anyway.)

I am a bit angry that banks that are supposed to be helping out students half way through your studies decide to turn on you and scare you, but now I just want to get the overdrafts paid off and close the accounts, and be debt free!! SO please anyone, any advice on this thread regarding my repayment plan with halifax???

BeautyandtheBeast_3

P.S I found both HSBC and Barclays (Fantastic with me!) to be great with students - could you swap your account to one of those and then you are in control of what you pay halifax??

charles7_2

Im not sure I will be able to swap, because Halifax have taken the overdraft away - which means i dont actually have any money in that account anymore, and am required to repay the outstanding overdraft balance to them. I dont see how they woulod let me transfer my account to another until i have cleared the overdraft?

Anyway, any ideas on my asking them if i can pay back £20 a month instead of £80?? How should i ask?

elfen

Please please go to Barclays or HSBC. They don't mind what gets paid in (as long as something does) and they are spectacular with students. I know I have a poor credit history but they gave me an account with an overdraft (which I will not touch unless it's for moving or getting me acar as it's interest free)

Fire_Fox

The terms and conditions state that your student account must be your main or only current account. Many student just rinse the interest free overdraft and then leave the account dormant; you are not the first who have had your free overdraft rescinded for misuse of the account. Can't you transfer your wages and direct debits into that account and then ask them to reinstate the interest-free overdraft?

charles7_2

Well i dont as yet have any wages because im in my 3rd year of study so dont have time for a job. The way i see it even if i had the overdraft again id still need to pay it back this year, and with a payment plan they have frozen the interest as long as i stick to it, so its basically the same isnt it. I just really really need to change the payment from £80 a month to £20 or £30 a month, can someone please advise me on how i should tell them this, will they be ok to change it??? I want to tell them sooner rather than later.

Lokolo

charles7 wrote: »

Well i dont as yet have any wages because im in my 3rd year of study so dont have time for a job. The way i see it even if i had the overdraft again id still need to pay it back this year, and with a payment plan they have frozen the interest as long as i stick to it, so its basically the same isnt it. I just really really need to change the payment from £80 a month to £20 or £30 a month, can someone please advise me on how i should tell them this, will they be ok to change it??? I want to tell them sooner rather than later.

Yes you do. As I recall its July at the moment, pretty sure you aren't in uni?

BeautyandtheBeast_3

you have broken up! i used to break up at end of june. Sign up with an agency and you will have work easily. Dont you have loans and grants - i used to pay my grant and loan into my account.
In answer to your question if you cant afford the £80 then simply pop into the branch and tell them! you got to be honest with people - tell them you are willing to pay back but £80 is too much etc and take it from there - Best to talk to them.

charles7_2

thanks beautyandthebeast, yea think i will go in, or maybe write to them (no so great on the phone.) I have broken up for holidays, but cant find a job anywhere. Have been looking almost every day, and no luck. maybe i will get one soon though.