Silly silly

Kirsty8910

:mad:

How could i ever be so stupid!!!! I was a student for 2 years and thought it would be a brilliant idea to get 2 student accounts :mad:

I now owe Halifax £1,649.36 --- I have made an agrement to pay back £330 a month which should take 5 months to clear.

This is just about managable.

Now Natwest....have completly stunned me. I have today recieved a letter from moorcroft debt recovery saying i owe Natwest £2218.69. I dont even know how this got so high as origionally i only ever had an overdraft limit of £1250. I recieved the letter from Moorcroft to my rented accommodation, but have never recieved any other letters/phone calls to this address regards to this account.

I really dont know how i can afford to pay this back as well as halifax.

A friend has offered to loan me what i owe halifax with no interest added, as ever you have to be weary of these situations and sign a contract and all. ( does anyone think this is a good idea)??

And then this will leave me in a situation able to pay back Natwest!

Any ideas, greatly appreciated....

Kirsty8910

P.s

After tax wages £850 pcm

Outgoings:

Rent: £420
Travel and food £100
Entertainment £60
Clothes £30

This equals me with £240 spare a month ---- doesn't even cover Halifax.... in the process of getting any extra work....

IWantToBeFree_2

Start by cutting back on your entertainment and clothes - I know you need to have a life too, but at the minute you can't make your debt repayments so you must cut back somewhere.

Do you really have £240 a month spare? If so, why hasn't the overdraft been reducing? May be a good idea to keep a spending diary to see where any surplus is going.

DVardysShadow

Send them the 'prove it' letter. Template somewhere in the stickies at the top of the forum.

And when you have this ask for a full breakdown of charges.

Your overdraft limit may have been £1250, but you need to be clear about what your debt was when you last touched the account.

Money only grows on trees when the banks need a handout. Not available for the likes of you and me.

Tixy

You need to pay back both debts fairly, so if for example you only have £240 then you would pay back halifax £102 and natwest £138.
But you should get moorcroft to prove you owe that balance first.

Agree you need to increase your income somehow, can you get a second job? or increase your hours at work?

With clothes either just wear what you have already or sell some existing clothes to make money for new ones for the time being.

Is your current bank account with a different bank? if not you need to move it straight away to an unconnected bank.

I think borrowing from a friend would be a really bad idea (for both of you).

mr.ton

Kirsty8910 wrote: »

:mad:

How could i ever be so stupid!!!! I was a student for 2 years and thought it would be a brilliant idea to get 2 student accounts :mad:

I now owe Halifax £1,649.36 --- I have made an agrement to pay back £330 a month which should take 5 months to clear.

This is just about managable.

Now Natwest....have completly stunned me. I have today recieved a letter from moorcroft debt recovery saying i owe Natwest £2218.69. I dont even know how this got so high as origionally i only ever had an overdraft limit of £1250. I recieved the letter from Moorcroft to my rented accommodation, but have never recieved any other letters/phone calls to this address regards to this account.

I really dont know how i can afford to pay this back as well as halifax.

A friend has offered to loan me what i owe halifax with no interest added, as ever you have to be weary of these situations and sign a contract and all. ( does anyone think this is a good idea)??

And then this will leave me in a situation able to pay back Natwest!

Any ideas, greatly appreciated....

£330 per month :eek:- way too much to repay to anyone in my view.
If you are happy to repay that amount then fine - but me personally, no way :eek:
£1 per month is the legal minimum in this country
I would advise to not borrow off anyone to honest - friend or otherwise.

Jimjams00_2

Contact Moorcroft and ask them why the figure is so high. Explain that you had a set overdraft limit so why is the debt almost double. I would then send them a letter with your income and outgoings showing you have no spare cash and make a token offer of £10 a month. They will most probably refuse but be adamant that you cannot pay what they want at this time.

Ask them if they would take the token payment and in six months (when you have finished paying of Halifax) they could review your case again. Then you could make larger payments. Be sure that they also stop any interest. I had a similar problem and after showing that i was unable to make the payments they wanted they accepted my offer. I only have three payments left to make. Then i'm free of that particular debt.:j

NorthernLas

I agree with Tixy, once you know what you owe you need to pay pro-rata.

Here is the link to the prove-it letter that you send to Moorcroft http://forums.moneysavingexpert.com/showpost.html?p=11570893&postcount=2

If your pay still goes into the Halifax or NatWest, you need a new bank account

Once you have your pay safe somewhere else, I guess you may need to send a letter to Halifax saying you can't pay what you agreed but you can pay £xx.

The National Debtline has some good information and sample letters http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#3

Kirsty8910

Thanks for all your advice so far, this makes me realise im not the only one in these kind of situations.

So basically what i need to do is write a letter asking for a break down of why what i owe has nearly doubled, send moorcroft a breakdown of my expenses showing how little i have left to work with and show them a comfortable monthly repayment i can make.

I know i need to cut down on expenses such as clothes and entertainment.... its just being disaplined right!

What hours i do work now are full time within the company but i think i could fit some other work around this.

Kirsty8910

Also am i able to get a new bank account else where even though these two have been so messed up?

mr.ton

Kirsty8910 wrote: »

I know i need to cut down on expenses such as clothes and entertainment....

Oh no you dont - clothes are classed as an "essential" in life, just as food & travel costs is as well for example......
"Entertainment" is also mentioned on any legal i & e form - so dont go without on that front either
The only thing you need to cut down on is paying these leeches too much per month :mad: