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Student overdraft help needed!

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Hey everyone, was looking for some advice.

My fiance banks with Halifax and has a student overdraft of £1250. He graduated in June last year, and couldn't get a graduate account with someone else due to his credit rating, so he just left it as it is.

He phoned them today, and the bank mentioned he needs to pay it all off by June or he'll incurr intrest + £1 charge per day!!

He asked them about a graduate account, and they said they don't do them, that this in theory is the graduate account and it needs to be paid in full by june.

We don't have that kind of money. Our financial situation is pretty poor atm due to my health. Any ideas on what we can do?! Thanks.

Comments

  • MrsManda
    MrsManda Posts: 4,457 Forumite
    This is in the terms and conditions (and not in the small print, the account is advertised as being for the length of your course plus one year post graduation) so he should've been aware and preparing.

    Your fiance may be able to convince them to freeze the interest for a bit longer if he arranges a repayment installment plan with Halifax starting now, he'd need to go into a branch and speak to a manager to discuss it.

    Other options are to get a graduate account elsewhere and transfer the OD but you said your fiance has a bad credit record so this is not necessarily a good option.

    You need to sit down and work out a budget which will allow your fiance to pay this off. Is he working at the moment? What income do you have between you?

    It may be worth doing a Statement of Affairs on the Debt Free Wannabe board to find ways of reducing your outgoings.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    The £1 a day is the usual Halifax overdraft charge.

    If he goes into his unauthorised overdraft he will be charged £5 a day.
  • Phoebe-
    Phoebe- Posts: 110 Forumite
    Yes, we are both working.

    He is on minimum wage so brings in about £825 per month.

    I have a disability which I can't claim benefits for (long story) so my average take home can vary between £500 - £900 depending on how many sick days I have. Obviously I try to minamize these, but it's usually out of my control.

    I currently have debt which means I pay about £200 per month. So we've done a budget, and all we could really afford to pay back right now is £20 per month cuz of my health issues etc.

    So there's no way we'd be able to find £1250 by June, and Halifax have said they can't do any kind of repayment option.

    I get shares from work in september 2012 which will be between £3-£4k, so hopefully the nightmare will end then with regards to debt as we can pay it off - but that's a year and a half away - so just don't know what to do for now :(
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