Graduate account changing to current account but im still £2000 overdrawn - help !

somerset_1

I got a letter the other day saying that because it has been 3 years since i graduated, my graduate account will be changing to a 'select account' (current account) at the end of september, which only has a £100 overdraft facility. But I am still £2000 overdrawn ! I also have a tesco 15 month interest free credit card with a balance of £1400 - such a lot of debt - aaaah.. I spoke to a guy at my bank today and he said i would be charged £6 per day if i stay that overdrawn and that the best option they could offer was a loan to pay off the overdraft, and based on my after-tax income it would end up being something like a £70 per month repayment over 3 and a half years, meaning i'd pay back closer to £3000 in actuality. I just dont want to do this ! Is there anything else i can do ? Am i being pressured into getting a loan i dont actually need ? I have read lots of the pages on this site but alot of it goes ove my head .. Any help much appreciated.

donny-gal

If you do not have £2k available to clear your overdraft, you do not have many options, as your time is short.

Do you have any money left on your Credit Card - will it accept a transfer interest free, or is there a card around which will, if so apply and transfer it to there, you will take the hit of a %age to transfer, and then work out how much a month to pay to clear it within the interest free period, and try to pay that much a month, the same with your £1400, ensure you are paying enough to clear it within the 15 months, and not just minimum payments.

If you cannot transfer the debt, then the only option is a loan as you cannot afford £6 a day interest. Maybe you could look at the loan for a shorter period and pay less interest that way,

You need to look at your expenditure to clear these, not easy, but maybe do a Statement of Account to see where you are spending more than you need?

DG

Sharon87

I'd first off apply for a credit card that can do super balance transfers, or another current account with overdraft. Shift your debt.

I would suggest don't take out their loan they offer you. If you want a loan, shop around for the best deal.

If you can't get credit, offer to pay so much off your overdraft a month, and see if they accept, write a statement of affairs with your in goings and out goings so we can see if you can make cutbacks, and also you can show this to the bank to try and accept a payment plan, say look I haven't got 2 grand, but I can pay £50/£100 a month off, or whatever you can afford. Get a new bank account anyway, that's the first thing you should do now, so your wages don't get lost in it. It may go to debt debt collectors if you don't pay it all back, but that is actually better financially as you won't pay any interest to debt collectors. That is the worse case scenario really, your credit rating can take a hit.

DS4215

It might be worth looking at another bank - you might be able to get a current account with a large enough overdraft that you can then pay back slowly. In fact, it will probably be worth getting a new bank account to have your wages paid into just so you current bank don't just decide to keep it all to pay off your overdraft....