Reduced Overdraft Limit Imminent - Advice Needed!!!

mikeyitstrue

I currently have the majority of my £8600 overdraft limit taken up (with halifax). However, they are due to review this imminently. Upon checking online they have reduced my guaranteed limit to £3100.
I realise that the 5.5k overuse will be charged at £5 per day - but my question is whether my DD's will subsequently fail and will i even be allowed to draw anything out?
It says pop into the branch to apply for a higher overdraft - has anyone experienced this and if so, do they often help you out by giving you the same overdraft level?
HELP!!!!

smartiedriver_2

I don't know how Halifax work with 'guaranteed' limit as you call it, but if they have reduced your formal overdraft limit then if your balance exceeds this you will be unable to withdraw cash, payments will not be honoured and yes, you will incur excess charges.

I would recommend you visit a branch ASAP and discuss how you and the bank can work together to resolve this. A consolidation loan may be the way to go. Alternatively, they may agree to increase the O/D back up again, but to reduce it monthly so as to reduce your overall indebtedness. Beware though, of this, as where I work we have to do manual reductions and so we charge for the work involved each month.

Good luck.

Tixy

Hi mikey and welcome

I'd suggest you might want to set up a possible parachute account with another unconnected bank as soon as you can.

That way if they won't agree to a higher overdraft then you can move quickly to your new account and have your benefits and income paid into the new account, at least then you won't be left with no money for priority items and you can then deal with repaying the old overdraft at a rate you can afford.

If they do offer you other products such as a loan think carefully before you accept them, or tell them you want to go away and think about it, its easy to feel pressured in a meeting to signing up for something that isn't really suitable, or you cannot afford, or is more expensive that you might be able to get elsewhere.

GooliesOfFire

In the past my wife had overdraft reduced gradually (every month lowered by a few hundred pounds) just so she was able to repay it without being affected by over-overdraft fees.
I suggest you go to your bank and ask.

ceecee31

The Halifax account I have also charges £5 per day when you go over your overdraft - however, it does NOT charge for unpaid direct debits or standing orders, it simply doesn't pay them. The £5 charge is instead of this.

I too had my overdraft reduced sharply by the Halifax, but I got in touch with the OD department, based in Edinburgh, and managed to get the lady on my side, reducing the amount on a monthly basis, rather than as one whack. Worth a try anyway.