Unemployed-Bank requesting £2000 overdraft to be paid in full..Help??

Samuel_

delete everything.

dazza.mk

If you are unemployed and (by the sounds of things have limited credit history) your chance of being approved and transferring it to a credit card is little to none.

First thing I would do would be to open a basic bank account with another organisation so money doesn't disappear into your (now unarranged) overdraft and then post on the Debt free Wannabee board for advice about your specific cicrumstances.

Voyager2002

Samuel_ wrote: »

This is for my NATIONWIDE FlexAccount btw. Around 3 years ago I left University at the end of the second year. I have been in but mainly out of work ever since, and have been un-able to clear this overdrafft debt which was almost completely depleted due to my accomodation fees during my 2nd year at Uni.

The letter I received yesterday states that the new Overdraft will be for £250, 1.45% and 18.90% EAR, as of 20 May 2012. (I am currently £1900 overdrawn)

If my balance isn't brought below this new amount it states I will be charged interest at their unarranged overdraft rate of 18.9% EAR, and also incur an unarranged overdraft fee.

Now, I was wondering weather I could do a balance transfer or a money tranfer? I've enver had a credit card and no very little about any of this. I've seen that they let you have 20 months at 0%.... Would I still have to make minimum monthly payments? I have no income besides my JSA of £112 every fortnight.

Any help on this would be very much appreciated, before I enter pannick mode, lol:p

The interest-free deals are unlikely to be offered to people without an income, for obvious reasons.

I think you need to negotiate seriously with Nationwide. Let them know that you are unable to repay this debt until you find work, and offer regular payments that you can afford in the meantime. Let them know that if they do not accept this, then you will simply default. Don't worry: while that would mean that you could not borrow again for the next few years they can't really do anything to you, and at that point your debt becomes interest-free.

Voyager2002

Samuel_ wrote: »

Thanks for the sharp reply. Oh yeh, I forgot to mention that the letter mentioned I could ring them to discuss my overdraft arrangement as they can't mainatain the overdraft at it's agreed limit (£2000), and if I didn't ring them the new overdraft terms would automatically occur from the 20 May 2012. Is my bank likely to be leinient here with me.

Obviously you need to ring them and let them know what you can afford. And please note that Nationwide is not a bank.

PlutoinCapricorn

MSE is full of useful tips, including how to eat good food on a very low budget.

Be careful though, this site can be addictive!

[Deleted User]

robertellenburg752 wrote: »

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Aw, gee, thanks. And your post doesn't look like spam/post building at all. It's really well disguised, ya muppet.

Reported and have a good weekend.

Samuel_

robertellenburg752 wrote: »

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Fruit_and_Nut_Case

PlutoinCapricorn wrote: »

MSE is full of useful tips, including how to eat good food on a very low budget.

Be careful though, this site can be addictive!

Did you put this in the wrong thread?

Anthorn

Samuel_ wrote: »

This is for my NATIONWIDE FlexAccount btw. Around 3 years ago I left University at the end of the second year. I have been in but mainly out of work ever since, and have been un-able to clear this overdrafft debt which was almost completely depleted due to my accomodation fees during my 2nd year at Uni.

The letter I received yesterday states that the new Overdraft will be for £250, 1.45% and 18.90% EAR, as of 20 May 2012. (I am currently £1900 overdrawn)

If my balance isn't brought below this new amount it states I will be charged interest at their unarranged overdraft rate of 18.9% EAR, and also incur an unarranged overdraft fee.

Now, I was wondering weather I could do a balance transfer or a money tranfer? I've enver had a credit card and no very little about any of this. I've seen that they let you have 20 months at 0%.... Would I still have to make minimum monthly payments? I have no income besides my JSA of £112 every fortnight.

Any help on this would be very much appreciated, before I enter pannick mode, lol:p

There are different things you can do but there is just one inescapable fact for both you and your bank/building society: They can't have money you don't have! Almost certainly, they will have made the demand in case you have money salted away that you can use to pay off the overdraft.

Priority and I mean do it by yesterday or preferably the day before that, you need to secure your income and/or benefits if this is being paid into the account. Otherwise they might take it and leave you nothing to live on. So you need to open a basic bank account somewhere and then have the money paid into that account. Then when they can't take your income you will have bargaining power to discuss regular payments to clear the overdraft and interest.

Paying off a debt by creating another debt is never the way to go and in any case in your circumstances it is highly unlikely that you will get any loan or credit card although not impossible.

If you can't open up a basic bank account anywhere then the only option is a fee charging bank account or a prepaid Mastercard which accepts BACS credits: I highly recommend Secure Trust Bank which you can get for half-price for 6 months if you apply via a link on moneysupermarket.com - £6.00p to open it and £6 per month. A monthly fee prepaid credit card is slightly cheaper but beware high ATM charges. Clearcash is worthy of consideration.

Anthorn

I don't think the interest rate matters. What matters is when your overdraft is reduced all credits into the account will reduce the overdraft and not be available to you.

The info I gave you in opening a different bank account is in the info you will already have from the Jobcentre. Additional to that they will arrange for payment at a Post Office or even payment in cash over the Jobcentre counter. But although they don't say so I think they will regard that as a short-term measure.

Miss_Spendalot_2

Samuel_ wrote: »

Thanks very much for this advice. I was able to access and withdraw money from my overdraft today.

Why are you still using your overdraft if you cannot pay it back ? Are you just going to squirrel it away along with your JSA and avoid paying off the debt you owe by defaulting?

You cannot run away from this debt it will come looking for you in the form of some agency or another once the building society sell off your debt to them.

Think carefully about how you handle this situation..