Overdraft HElP!!!!

debt_collector

I have an overdraft with Barclays Bank. My limit is £1500, however I am up to £2000 Barclays have rightly so frozen my debit card.
My question is this: Because i am overdrawn, as soon as my pay goes into the bank it obviously clears some of the overdraft, however still leaves me overdrawn. Then by the time my direct debits etc come out I am back to £2000 overdrawn again. Vicious circle. I dont want to get a bank loan and I already have credit cards which I am always up to date with. I dont want to transfer my overdraft onto a super balance transfer card as I am in the process of paying my cards off. Any advice of what I should do??
I have read previous threads about freezing my overdraft and even changing banks? Any ideas??

Regards

SparciaM

Have you had a call from Barclays Collections or have you tried calling them?

They can set you up on a plan to give you an increase on your overdraft and then reduce it slowly over 2 months. Maybe you should give that a try.

YorkshireBoy

First of all, this is not meant to seem flippant, but there are only 3 ways out of your situation...

1. Earn more (change jobs, take a second job, work more hours?)
2. Spend less (post a SOA on the debt-free wannabe board, and check out the OS board)
3. Shift your debts to lower APR's/EAR's

Since you've shown a reluctance to super BT your overdraft to a credit card (doesn't have to be 0% BTW, you may be able to move it to a 3.9% APR LOB M&S card via the 'Egg Money Card Trick'), your only other course of action seems to be to move your current account to a provider with a cheaper O/D rate.

Having said that, with a typical EAR of 17.9%, your overdraft should only be costing you £14/£1,000/month (obviously any unauthorised balance is costing you more - both in interest and fees presumably).

Even if you got a 0% intro rate on the new account, the savings are not 'very' large, so you may have to look at points 1 & 2 above.

dexters_mum_2

Hi there,

Can I ask if Barclays are charging you a fee for unpaid items?
If so, you should be able to claim some/all of these back (see board forum below- Reclaiming your bank charges) and this may ease your situation.

Pop into a branch and see if you can come to some agreement with regards to Barclays freezing any further charging activity on the account and work out a repayment plan.

Worth also opening another, basic bank account with another bank, for your wages to go into, so your moeny isn't always eaten up by your overdraft, this will afford you more money to actually pay Barclays bank back.

Best of luck.

jonesMUFCforever

Well cancelling all your direct debits would seem to me to be a sensible idea and ask them for a paying in book so you can pay over the counter.

YorkshireBoy

debt collector,

It's important to see both sides, so...

dexters_mum wrote:

If so, you should be able to claim some/all of these back (see board forum below- Reclaiming your bank charges) and this may ease your situation.

Be aware though, that they could call in the overdraft if you launch legal action against them. Not a problem if the amount claimed (and paid out) will clear your overdraft, but you could be in trouble if it doesn't.

Pop into a branch and see if you can come to some agreement with regards to Barclays freezing any further charging activity on the account and work out a repayment plan.

OP is up to date with all card payments - indicating that his/her credit file may be untarnished. Coming to an 'arrangement to pay' with Barclays could be recorded on his/her credit file, meaning future applications for credit (credit cards, current accounts, buy-now-pay-later, etc) may be affected.

SparciaM

I work for Barclays and if your account debit has been frozen you'll already be in the process of being passed to their collections department, if you call 0845 300 1592 and set up a 2 month arrangement to pay that'll sort you out, plus, it wont go on your credit file, just a bad mark against yourself with Barclays, which is what you have already I'm afraid (in respect that you've gone £500 over your limit).

debt_collector

Thanks to everyone for you advice. Will give Barclays a ring and sort an alternative arrangement out with them. I dont really want to switch accounts as I have been with them for 13years.

mrsbez_2

Hi,

It looks as though you need to look at your monthly income/outgoings. I'm sure Barclays will come up with a repayment plan for you, but if you need to keep hold of your wages to pay bills etc, it may be better to open up a separate account, even a basic account with another bank, just to have your wages paid into and transfer a set amount to barclays every month to reduce the debt.

At least you can keep a hold of the situation and handle your wages before they get swallowed up in your overdraft. But you need to look at your finances otherwise you will find yourself in the same position again.

debt_collector

Thankyou for your advice. I will contact Barclays ASAP and see what options are available for me. Regards

debt_collector

If I am going to open another account purely for paying my direct debits out of,does anyone have any suggestions of which bank I should try??