Halifax charges on Overdraft

FerretloverUK

Im approx 2k into my overdraft & paying approx £30 per month for the privilege.

I want so badly to pay this off as I only went into it as i bought a house & cant get it cleared due to paying the £30 charge every month (when i could use that to pay off the 2k)! Im struggling enough as it is but manage to pay the mortgage & bills every month but I long to be totally debt free again.

I called them & they said the only option is to get a credit card which I am very unwilling to do as surely that would create more debt as Ive never had one in my life!

What can I do? Can I claim the charges back?

Hermann

Can you get an account with a different bank?

One that charges sensibly for O/Ds for instance.

Premier_2

No one will lend you money for free, not as a long term business.

As I see it, you have 3 possible options:

1. Pay back the money from existing income/savings (which you presumably can't do)
2. Borrow the money elsewhere at a lower rate. Some credit cards might offer an interest free introductory period (but you say you don't want a credit card)
3. Carry on as is.

bengal-stripe

FerretloverUK wrote: »

Im approx 2k into my overdraft & paying approx £30 per month for the privilege.

If you overdrawn by 2k throughout the month, £30.00 in interest will work out as approximately 18% APR.

This might not be cheap, but is nowhere an excessive rate of interest.
Use your overdraft less and the interest charges will come down!

FerretloverUK wrote: »

What can I do? Can I claim the charges back?

No, you cannot claim interest charges back.

davidgmmafan

Well if your thread concerns the new £1 per day charge then you are stuffed unless you objected at the time. Had you done so HBOS would've ignored your refusal anyway!

Some banks are offering interest free overdrafts, or you could try for a credit card, some offer (or used to) 0% and allow balances from a current account.

I am very concerned about Halifax promoting credit cards and loans on the back of a change they introduced makes it look even more opportunistic.

There is another optiong others have missed is, if you are genuily struggling, approach a debt management charity. They could do a statement of affairs for you which at least has chance of getting the bank to do something to help.

I get the impression from the pot your finances are otherwise healthy so you should be able to get a 0% card or a life of balance transfer deal if they stil exist.

natweststaffmember

Premier wrote: »

No one will lend you money for free, not as a long term business.

As I see it, you have 3 possible options:

1. Pay back the money from existing income/savings (which you presumably can't do)
2. Borrow the money elsewhere at a lower rate. Some credit cards might offer an interest free introductory period (but you say you don't want a credit card)
3. Carry on as is.

Student accounts on the lend money for free over a long period of time

Premier, you know I have this one in the locker now, right?