Halifax overdraft charges are crippling me

1ManRiot

I've had a £1000 overdraft with Halifax for years, gradually got further and further into it until I basically accepted I was going to be in it for the foreseeable!

The charges are £1 a day for being in it, but if I go over the agreed £1000 limit I get charged £5 a day.

After redundancy, then a heart infection putting me out of work for 8 weeks, then taking a new job at a pay cut for an engineering apprenticeship (it is a step back for 2 steps forward long term) I'm really feeling it now.

Every month for the last 6 or so months I've been going over the agreed limit, then using Wonga to pick up the gap and slowly using more each time, the gap getting bigger, the slice out of the next pay a little larger... you get the picture.

My question is this: I've open a new current account with NatWest; if I transfer everything over to that (wages in/bills out) and effectively cut the Halifax one off, then write to them explaining my circumstances and ask them to freeze the debt and let me repay it at a reasonable rate, are they likely to let me do this?

I really don't care for my credit rating, it is about as bad as it can get without CCJs and it will be years before I can recover it properly anyway.

For info, the only other debt I have now is a credit card with Halifax, £450 into a £500 limit and paying off a little over the bare minimum a month.

I've had debt problems in the past, defaulted on a loan and embarrassingly my parents bailed me out.

1ManRiot

At the moment I get paid £580 net every 4 weeks and I claim Working Tax Credits (I'm 27) to the tune of £30 a week. My pay will rise to approx £850 net when I move onto the next stage of my apprenticeship in June (+ the limited opportunity for overtime).

Lokolo

I think you need a slap of common sense more than financial advice, but there we are.

First of all, do a budget

http://www.makesenseofcards.com/soacalc.html

You can also post it here to get advice on where you could cut down.

Get your pay going into your Natwest account and go into Halifax and ask about a repayment plan. They will most probably want to see your income and expenditure, so the above SOA will help.

meer53

Beware, Halifax may request you pay off your overdraft in full on demand if you do this.

1ManRiot

meer53 wrote: »

Beware, Halifax may request you pay off your overdraft in full on demand if you do this.

They can ask, but I can't magic money out of thin air!!

meer53

1ManRiot wrote: »

They can ask, but I can't magic money out of thin air!!

If you're not bothered about your credit rating then go for it ! I'm sure thats the wrong advice but do you have any other options ?

pinkdalek

Halifax collections can arrange a repayment schedule for you, they will need income/expenditure, charges would be frozen from the date of the arrangement and provided you pay the payments on time you will be fine.

They will look for a set amount each week/month, contact CCCS for more advice on how much you should offer.