Advice required on freezing Overdraft Interest.

handyman123_2

Hi all, looking for advice not for myself but for DD and SIL who have got themselves into a right old mess. Not for the first time have they asked Step Dad to bail them out:mad:

I'm hoping DD has her LBM but for the time being the mortgage remains unpaid for the 4th month. Their bank charges are running at about £450 - £550 per month. She is to embarrassed to say how large the overdraft is.

My advice to them is to contact one of the debt charities, and to change banks (for payment of wages ) therefore getting back control of their money.
Cutting to the chase, while they are getting a DMP organised. I want SIL to contact his bank and explain why he has taken this action. Severe financial hardship being one of the reasons, and that while ever they are taking 1/3 of his monthly income he will never get straight.

I can put the letter together for them, but I believe I once saw a template or link on here. Has anyone any idea's.

I will be honest, the SIL has done this to them. I normally wouldn't P on him if he was on fire. :mad: But when DD comes crying to mum, saying there is nothing in the house for the kid's to eat ( 1 and 3 ). I have to act.

It's either do my MSE bit, or go round with the baseball bat :eek: (Just Kidding).

Thanks in advice for your help.

Regards to all, Handy.:D

bottleofred

Hi Handy,

I found this on the insolvency helpline. Your DD and SIL can obviously remove any paragraphs that don't suit etc. In my experience, some banks are very helpful and reduce/freeze the interest, while others just keep charging. I hope they get sorted though. I removed the bits of the letter that were not appropriate, but they can obviously add/remove what they like.

Regards,

Red
Dear Sir/Madam
Re: (provide name address and reference number if known)

Enter a paragraph explaining personal circumstances for the financial difficulties. You may also need to give reasons for any high expenditure on the financial statement, especially if this relates to their illness.
We enclose a financial statement using realistic budgeting figures based on our current circumstances. We are offering a payment to all creditors based on an equitable distribution of the surplus income available. We appreciate this represents a reduction in the contracted repayments, but at this time we believe this is the best offer we can afford to maintain regular payments.
Should circumstances improve we will review the payments, and we will contact you accordingly.
It would be helpful of you could provide a payment book, standing order/direct debit form (delete as appropriate) so that the payments can commence as soon as possible. It would be helpful if you would give consideration to freezing the interest so that all payments received are used to reduce the debt.
We hope you will give kind consideration to this offer, and we look forward to a positive response in the near future.
Yours faithfully
Encs

handyman123_2

Cheers for your input Red. Am bumping back up in case any one else has anything to add. I wan't to be in a position to get something in the post to their bank by Monday morning. I have had a quick look at the figures for them and if the Bank (Slantander) lays off on the overdraft and other silly charges they could be back in the black in 3 -4 months. They will also have to cut out Gym 2 mobiles, Takeaways and Outings. But hey ho, most off us on here are happy with a virtual social life.:D

Regards to you all, Handy.