Need some clarity please.

fragglerox

Hi all, very glad to have registered with this much needed site!

I just need a little clarity as I don't know what to do for the best with regards to Barclays.

I was made redundant at end of April and have two illnesses that are likely to prevent me from working full time again.
I have a Barclaycard with less than £1500 owing. I have offered to pay £1 monthly as I only get £65 a week and outgoings are more than this. Barclaycard refused and have used the off set rule to deduct money from my current account i.e my ESA money to make a payment on Barclaycard. In one way this is helpful as it means no further action until next payment is due. They have put the account 'on hold' for two weeks until I call the collections department to try and arrange monthly payments. The Financial Difficulties department told me today that they can only accept no less than £10 monthly which I can't pay. The collections dept might accept less but will affect my credit file.

I could of course take my money from Barclays, close the accounts and only pay the £1 monthly off Barclaycard. And transfer direct debits to another Bank.

Barclays have still got me on a free £650 overdraft facility which would be useful in emergencies.

I can't think straight and can't work out what my best option is! Would I be better sticking with Barclays and try to arrange a low payment for the Barclaycard, thereby keeping the overdraft facility and debit card? OR Have done with Barclays and move elsewhere?

I do see my situation as temporary as I want to get back into part time work but there are no guarentees and I can't give a timescale at present.

Any ideas anyone???

Thanks in advance.

CLAPTON

open a new bank account immediately and have your income paid into it as they can take what they like at any time

it's rather unrealistic to think that they will allow you to keep an overdraft on the bank account if you can't pay the CC properly

coming to an arrangement to pay will probably trash your credit rating

fragglerox

Thanks Clapton. That did seem the best option to me initially and while I was still angry about it!

My credit rating will be trashed anyway won't it as I can't make the minimal monthly payments. How would it be different if I did not come to any arrangement with them but just continued to pay the £1 a month?

They have not stopped the overdraft facility as yet and it's been 4 months now. Are they likely to stop it soon?

davidgmmafan

Yes at this point your credit rating is going to take a hammering whatever you do so a parachute account is a must.

SaveTheEuro

It might be worth giving the National Debtline a call. It's a free number. They can advise you on the options and offer some support.

fragglerox

Many thanks for your responses. I am happy to report that I opened a new bank account today with Nat West. I need to leave money in Barclays until transfer of direct debits is complete but once that's done it's goodbye to Barclays. :j
Nat West also offered me there Gold account initially :rotfl: but as there are charges with that account I turned it down. Seemed odd as I'd told them I was not working! Anyway, I now have a new account with debit card. I hope it's a goody.