Please help - Overdraft

Gem_84

It's been a while since I posted so let's start with a brief update.

I've now paid off my £1500 credit card, and thanks to this site reclaiming the PPI on my loan means my £7000 loan has gone too. YAY!

I also recently started university and I'm loving it!

The only thing that's dragging me down is my £2000 overdraft. It started out as £200 back in 2005 and has gotten bigger due to job loss, struggling to pay rent because of this. Lastly this year, my car insurance company took my renewal twice because their computer timed out. Of course, they paid it back, but it meant I was out of pocket and the bank changed my overdraft from £1300 to £2000, as my statements rolled in they said it would be reviewed September next year as usual. So I forgot about it, and then started uni and it was the last thing on my mind.

This week, I went to put a cheque into the bank, and they said they needed to talk about my overdraft and could I make an appointment. I had a friend there with me so I didn't want to ask the cashier if it was something I should be worried about. I've made an appointment for next Wednesday. I'm concerned, can they take away my overdraft? Although I'm looking for a part time job, I don't get a great deal of money and as a lot of you know it isn't cheap to go to uni.

Also, I haven't opened a student bank account yet. I know saying I've been too busy is probably a terrible excuse I just keep forgetting! Any advice would be greatfully appreciated. Also, if I've omitted anything please let me know

Thanks!

Tixy

Hi Gem

Great news on the debts you have cleared so far.
Your bank could take away your overdraft with a month's notice - however this is usually just done by a letter. As they have asked you to make an appointment it may be that they want to see what proposal's you have to reduce it or want to try to sell you a loan to repay it.

If you used to have a salary going into that account but no longer do then it may be this that has triggered the issue.

Dependant on what your current financial situation is it might be an idea to go into the meeting and say that you would like to reduce the overdaft limit by a set amount each month or quarter to gradually reduce the debt. This might be a better option than them just removing the o-d altogether.

Gem_84

Thank you, this is a massive help

RAS

What you need to be very careful about is:

1. That any money you pay from now on could be taken by your bank to off-set against the debt you owe them. You need a new bank account before Wednesday.
2. They will almost certainly try and get you to convert the OD into a loan, with massive interest charges attached. Don't do it.

You need to post your SOA on here and people an help you better.