Bank accounts, overdrafts and the temporary worker

Tete_en_l'Air

Hello all-

This is my first post so I hope someone will be able to help me. I was astonished this lunchtime to see a £17 interest chanrge on my Barclays overdraft of £1450. This is... what? Over 10% pa? I haven't gone over my limit so I can only assume that my special graduate rates have ended.

It has prompted me to look into changing my bank and trying to transfer my overdraft. The only reason I'm currently in my overdraft is three months work experience (ie slave labour!) in Spain before Christmas. Now that i am earning, I plan on having the money paid off by the summer- fairly easily as my outgoings are minimal at the moment. The problem is that I am currently only temping for an employment agency so, although I am earning more than is required for the A&L account for example, I don't know how I would stand in applying for an overdraft at a new bank because I am not in permanent employment.

Has anyone else been in a similar situation or know where I would stand with this? Or am I doomed to stay at Barclays until I am paid off??

Any nuggets of wisdom gratefully received!!

jonesMUFCforever

I sometimes get very worried about the level of education in this country!
Here's someone who thinks banks will lend money for free indefinetely.
No doubt 3 or 4 years interest free overdraft followed by another couple of years at least free on Graduate terms!

Get real and deal with the problem not just shuffle it around.
Sorry if you think I'm taking the pi** butwhat good is it going to do you if you can't repay a poxy o/d of £1450 when your outgoings are minimal?

What will you do when you want to buy a house or borrow perhaps for a newish car - if you can't manage now God help you.

krisskross

What sort of work experience was it?

Tete_en_l'Air

That constructive comment put me in mind of the old adage about keeping your mouth shut if you can't say anything nice.

Honestly, I thought these forums were here for people to support and advise each other whatever their question and financial predicament, and I've seen some people in thousands of pounds worth of debt who get nothing but encouragement for dealing with it (and rightly so), but after ejones999's comments and scornful reference to my "poxy o/d", I wonder whether you need to have a five-figure debt to gain any respect and be worthy of a sensible answer!

To reiterate: I do not think that banks will lend me money indefinitely, nor do I think that they should. I am dealing with the problem, which is why I'm doing temporary work in the first place rather than just going on the dole. All I'm trying to do is avoid paying £20 a month in charges in the meantime, and I don't see any difference whatsoever between this and credit card "tarting".

moontree

I'm not very knowledgeable in this area, but having worked as a temp in the past I wanted to offer my support. I didn't try opening a new bank account while I was a temp, but did apply for a credit card, which was successful.

Have you thought about going into another bank and having an informal chat with one of the staff about what they might be able to offer you?

To be honest, £17 on a £1450 overdraft sounds similar to what I pay (with Halifax) but it might be worth shopping around to see if you can get a cheaper rate.

It does come as a bit of a shock when the student conditions come to an end, doesn't it? I can relate very much!

Good luck with this.

Marga.

bev79

Ask your agency to provide you with a letter statingthat you are on an ongoing temporary contract, take this with ID and proof of address and you will get a bank account, however I think it will depend on your credit rating in general whether they will match your overdraft. You could open another account and make an arrangement to pay off your overdraft mthly/wkly.

thumshie

When did you graduate? Normally the 0% OD decreases year on year. Looking at barclays web:

Web wrote:

£200 interest-free overdraft on account opening.
• Up to £3,000 interest-free overdraft available for up to three years after completing your studies, depending on year of graduation:
- Year 1: up to £3,000
- Year 2: up to £2,000
- Year 3: up to £1,000
- Year 4: up to £500
- Year 5+: up to £200.
• Apply to extend your overdraft up to £3,000 at
9.9% EAR typical (variable).
• Decision in minutes in most cases.

It may just be that because your over the 1,000 they're charging you the 9.9% on it all.. Look at the T&C's...

regularsaver1

sounds like your interest rate is about 14% p.a - not unusual for an overdraft