Overdraft

david39

I think I would be honest with Halifax and explain what has happened without going into too much detail. It won't do any harm, in fact it will show that you are facing up to the situation - which is something you would have to do at some point, whatever course of action you had taken. - I know from my own experience!

Better it happen now than 6 months further down the line when it would probably be a worse problem, leaving you even less room for manoeuvre.

I think you will find that Barclays will be as helpful as possible because they have a problem with the account as well as you. If it has reached a worrying stage for you, they would probably have been close to calling you in to "discuss" it anyway. If you start the ball rolling, it will show that you have recognised that something needs to happen and that you are doing something positive towards it.

They will have loads of customers in the same boat as you - they'll be thankful that at least one of them is taking a positive approach to try to put things right!

mrsb83_2

I understand what you're saying, but to me the risk of them recalling the overdraft would be too much for me unless I *had* to do it.

I'm currently saving to pay off my overdraft too so I know how you feel.

I'm paying into a separate account with a view to paying my overdraft off in two bits. It makes it easier to manage IMO.

Also, consider that if you have money going into an overdrawn account (albeit to be spent again), you save some interest, whereas if it's maxed out for the whole month, you pay interest on the whole amount for the whole month.

topcat9

Hi Jonathan - you've received good advice today from everyone. Can I just add that if you are going into Barclays to talk about how to deal with your overdraft it is possible that they might suggest you take out a loan to clear it. This could be a good idea if your overdraft was caused by a one-off overspend which won't happen again, but if you've run it up by spending a little bit too much each month then don't do it! You're likely to carry on spending, you'll end up running up another overdraft and you'll be in twice as much debt. It is definitely worth taking a good look around this forum, reading up on consolidation loans and perhaps posting or filling in your own SOA (state of affairs) to see where your money goes each month and how you've ended up with such a big overdraft. Then you can tackle the root cause of the problem. Best of luck!!

panicsetin

I have two overdrafts with HSBC and did exactly as you are thinking of doing, opened an account elsewhere and just carried on paying a set amount off each overdraft every month (nowhere near as much as you are talking about either - less than £50 per account). This was over two years ago and I am still doing it and each year HSBC renew my overdraft with no problem while I carry on slowly reducing it....

I know you could have your overdraft called in but my experience has been that this doesn't happen (at least hasn't to me).

Just more food for thought really...

JonathanO_2

Have to say a massive thanks to this forum to be honest....I went into halifax and explained i hadn't been entirely honest with them, she said i could still cancel my account which i have done, i have made an appointment for noon on wednesday at barclays to discuss my current overdraft

Cheers for the help and support...:)