Overdraft dilema

Thriftkitten

Hi I am after some advice plz, I have had a current account that I no longer use, transferred all dd's to a new account that my wages goes into, in the no longer used account I have an arranged overdraft facility of 2500, of which is used, only a £100 is interest free and so they are charging me I think about £40 a month, I have been trying to lower it but it's not really budging if you include the £40 fee, would anyone have any other ideas as to how I could get rid of this a bit easier rather than just chipping away and paying the fee constantly, thanks in advance x

jalexa

Thriftkitten wrote: »

I have had a current account that I no longer use, transferred all dd's to a new account that my wages goes into, in the no longer used account I have an arranged overdraft facility of 2500, of which is used, only a £100 is interest free and so they are charging me I think about £40 a month,

If you do not pay your wages into the overdraft account you will likely soon receive a demand to repay the overdraft.

thatsean

Not really sure what you are looking for someone to say. The answer to me seems to be pay more off, but as jalexa says, you'll likely soon have the opportunity to pay it off in one go when the bank pull the facility from your account

Ben8282

It is very unlikely that a bank will allow you to retain a £2500 overdraft facility on an account which is no longer used.

Your choices are:
- obtain an overdraft facility on your new account
- take out a loan
- take out a credit card
- pay it off some other way

Best idea is probably a loan taken over a reasonable, but not overlong, period.

opinions4u

Pay more.

The debt will then reduce faster.

As will the interest.

HJFrancis

You can also try writing a letter to the bank (on your account with the overdraft) asking them to suspend the interest charges so that you can pay off your debt. This might not work if they recognise that you've simply moved across to another bank, however.

Let us know how you get on; no one likes paying interest.

Your other options are those indicated by Ben8282.

KingElvis

Expect the overdraft to withdrawn and a demand for the whole lot very soon.

getmore4less

What's the breakdown of the £40, it's likley not all interest.


you need to head on over to debtfreewanabee and do a SOA.

DreamerV

Thriftkitten wrote: »

Hi I am after some advice plz, I have had a current account that I no longer use, transferred all dd's to a new account that my wages goes into, in the no longer used account I have an arranged overdraft facility of 2500, of which is used, only a £100 is interest free and so they are charging me I think about £40 a month, I have been trying to lower it but it's not really budging if you include the £40 fee, would anyone have any other ideas as to how I could get rid of this a bit easier rather than just chipping away and paying the fee constantly, thanks in advance x

I notice by your signature you are saving up money, I'm guessing because you've realised it all makes a difference. While you are paying interest on debt, it makes sense to throw even these small savings towards the debt to reduce it. Your £2 coin total and savings come to around £52. If you put that towards the debt, it would effectively be worth more than £52 as it not only reduces your debt by that amount, but also saves you the interest charges you would have had to pay on £52's worth of the overdraft.

Stoneman_2

KingElvis wrote: »

Expect the overdraft to withdrawn and a demand for the whole lot very soon.

That's not always the case.

I am in a similar situation with Santander.

I've moved to Barclays and my wages now go to that account.

I received a letter last week from santander stating that I need to make regular payments in order to keep the overdraft.

I spoke to customer services and was told that as along as I made a payment every 35 days, the account would not be considered dormant, however, they review the account on a yearly basis, so I was advised that it might be withdrawn if I'm not seen to be using the account.