Debt advice

chazzat_2

Hi All,

First time poster here on MSE, but have been an occasional browser for a few years.
Just looking for a bit of debt advice, so let me put you in the picture.
I developed a gambling problem over the last year due to an inital run of luck, which cumulated in me placing a large bet that I could not afford, not thinking that my bank would honour it, not knowing that they are obliged to honour VISA payments (and not thinking generally). This took me over my already £1300 overdraft (already had a small overdraft to cover overspending on my wages, stupid of me, and then increased to chase gambling losses) to around £1750, but unauthorised. Of course then, I started getting £15 unauthorised overdraft charges etc. up to the maximum my BS will take from me. (£95 per month).
I have very few other outgoings, i'm 22 and still living with my parents, so short of the rent I pay to them, and approximately £280 I spend on public transport to get to work, it shouldn't be too hard to clear down with some self-restraint.
Currently my balance is at £-1435. After I get paid on Wednesday, my balance will be at £-200. Once again, adding up only the neccessities (rent and travel) I should be at around £-800 at the end of December, then on payday would take me to £400.

My main question is, to anyone that may be kind enough to have read the above rambling waffle, is should I set up another bank account to get my wages paid into and then clear off this overdraft, and should I look into getting a 0% balance transfer credit card to shift the debt onto, or would this not really be necessary/advisable in my situation?
Also if anyone has any other advice they can give me it would be much appreciated.

ohhappydays

speak to the CCCS asap my son had a similar problem and run up £14000 debts through gambling and payday loans to fund his habit, sorry but not allowed to post link as a newbie but just search google

chazzat_2

Thanks for the advice OHD, I checked out the CCCS page and it basically advised to continue as I am. Could anyone else perhaps give an opinion on my questions further down in the post? I would not consider the gambling the primary issue as I trust myself not to buy so much as a lottery ticket again. I'm now one of those people that would, if presented with the opportunity to go on Deal or No Deal, class myself as a non-gambler. Main question is how important it is to open a second bank account to get my wages paid into?

Tixy

Hi and welcome

The fact that you are over your overdraft limit will be recorded on your credit file, and so I doubt that you will be able to get a 0% credit card at the current time.

As you can get out of your overdraft in a few months (if you are careful and don't spend extras) then the debt charities are unlikely to be able to help. You can either carry on with your current bank account and make sure you don't overspend and so hit the targets you mentioned above, or you may find it easier to open a new bank account with a seperate bank and then set up a standing order to pay say £500 a month to your old account, then just use the new account for any spending, paying your essentials etc.
Whilst this second method will cost you slightly more in interest, it does protect you from the possibility that your current bank recall your overdraft in full. As you have gone over your limit it is possible this will happen and then would leave you with nothing at all to live on for the month.

I would try to get a new account opened with a new bank asap. Does you pay go straight into your bank tomorrow? If so then you obviously won't get a new bank set up in time this month, but you could draw out the money you need for essentials as soon as you are paid, and put this into the new account once its open.

chazzat_2

Superb Tixy that is perfect, thankyou. As you say it will be too late to set this up for this month end but I will set it up for the end of December. I really can't risk the BS withdrawing my overdraft facility outright and having to pay it.

Is it a "basic bank account" I am after?

Mistibee

who do u bank with at the moment?:j

joedenise

Yes you need to open a Basic Account, with no overdraft facility. The bank you choose needs to be with a bank who is not in the same group as your current bank.

As Mistibee above asks "who do you bank with now?". The new account needs to be outside that group.

Hope that makes sense.

Denise

chazzat_2

I am currently with Nationwide. I've heard good things about First Direct. (That's not to say that I have been treated badly by Nationwide in the slightest) I may well switch to First Direct outright anyway once this is all cleared up.

Anyone have any other recommendations for a basic bank account?

Tixy

Barclays basic account and co-op cashminder are well thought of on here (and are the 2 easiest to get as even people who are bankrupt can get them).

Have a look at this link which states what facilities each basic account comes with on page 6/7 (a few don't have full debit cards) - http://www.moneyadviceservice.org.uk/_assets/downloads/pdfs/your_money/a5_guides/basic_bank_accounts.pdf

I don't think first direct have a basic bank account - I think it may only be the hsbc one.

Dinah93

First Direct do not offer a basic bank account, and you need a very good credit score to be accepted by them as well as an income over around £21,000. Given you will be back in your authorised overdraft by tomorrow, and are not likely to go over it again I really think this is a one off situation and there is no need to open another bank account. We went over £2000 over our overdraft on holiday as we didn't realise we had the wrong bank card (both the same bank, both same colour!) and they certainly haven't cancelled my overdraft - in fact they increased it! You have a sensible plan to pay off what you owe in only a few months, you'll be in an agreed overdraft tomorrow, I don't get why on earth the bank would call in the overdraft, they usually only do things like this when they get a whiff of bankruptcy or an IVA, and you're a very, very long way from those things.

Firewalker

chazzat wrote: »

Thanks for the advice OHD, I checked out the CCCS page and it basically advised to continue as I am. Could anyone else perhaps give an opinion on my questions further down in the post? I would not consider the gambling the primary issue as I trust myself not to buy so much as a lottery ticket again. I'm now one of those people that would, if presented with the opportunity to go on Deal or No Deal, class myself as a non-gambler. Main question is how important it is to open a second bank account to get my wages paid into?

It looks like you can crawl out of this one. However, YOU SHOULD STOP GAMBLING! NOW!

There is gambling thread here and if I were you I'll go on it and get special support.

Firewalker