Overdraft paying back issues.

midjet666

Before I start, I know I have been stupid asking for a £750 overdraft, but we all make mistakes and I'm having to learn from it.

Anyway, I have a £750 overdraft with the Halifax- ultimate reward account. I want to reduce it and pay it all off but I'm being charged £10 a month for the account, and then £1 a day for being over the £300 free overdraft. So last month I paid £38 and I'm assuming I will end up paying £41 soon.

I rang them up yesterday asking if I could freeze my overdraft so I could pay off the £750, my mom did this with her debts before. They refused and said that I just had to ring up and reduce the overdraft whenever I had money in there which I was planning on doing. But I'm just racking up more debt trying to pay this off with the monthly and daily fee.

Is there anything I can ask them that will help me out?
Your help will be greatly appreciated

Cash_Flow

midjet666 wrote: »

Before I start, I know I have been stupid asking for a £750 overdraft, but we all make mistakes and I'm having to learn from it.

Anyway, I have a £750 overdraft with the Halifax- ultimate reward account. I want to reduce it and pay it all off but I'm being charged £10 a month for the account, and then £1 a day for being over the £300 free overdraft. So last month I paid £38 and I'm assuming I will end up paying £41 soon.

I rang them up yesterday asking if I could freeze my overdraft so I could pay off the £750, my mom did this with her debts before. They refused and said that I just had to ring up and reduce the overdraft whenever I had money in there which I was planning on doing. But I'm just racking up more debt trying to pay this off with the monthly and daily fee.

Is there anything I can ask them that will help me out?
Your help will be greatly appreciated

First step cancel the ultimate reward, that will save you £10.00 pounds a month, you can put that along with the 5 pounds for paying £1000 in p/m towards paying off the O/D.

midjet666

If I cancel the reward account (which the overdraft is on) what would happen to the overdraft? I'm really confused about it all.

I'm phoning them now and have asked to cancel to it. Thank you!

stephane_2

With the ultimate reward account the first £300 of the overdraft are interest free so am not sure that it would be in your best interest to cancel it. If you do then the fee you would pay for using your full overdraft would be far greater....you need to calculate what is best for you.

cottager

midjet666 wrote: »

If I cancel the reward account (which the overdraft is on) what would happen to the overdraft? I'm really confused about it all.

I do have a Halifax a/c but not with an overdraft, and not the Ultimate, so someone with more knowledge may be more help; but AFAIK you would only be asking them to change your Ultimate Reward Account into a Reward Account.

You would then cease paying the £10 monthly fee for the URCA (but also lose the benefits like the insurance cover, for which, if you use them, you'd have to make other arrangements) but it would still be the same a/c in terms of its account number and the overdraft you have (though it would be as well to check this with Halifax at the time). Someone do please correct me if I'm wrong about this.

If they will change it into a Reward Account, and provided you were able to pay £1k into the a/c every month, you would get a £5 reward per month; so instead of being £10 down every month before you even start, you'd be £5 up. It doesn't sound much when you have a large overdraft, but a £15 net gain is a small start. What I don't know is if the basis of how you'd be charged for being overdrawn would alter by changing the account from the Ultimate Reward to the Reward, as I haven't checked.

HeadAboveWater

I got stuck in that rut with Halifax a few years ago. Reduced my overdraft by £50 each month but by the time it got to the end of the following month, with fees/charges etc, I had to up the overdraft again :mad:
Had to ditch the account in the end and switch banks as I wasn't getting anywhere

lazer

midjet666 wrote: »

Before I start, I know I have been stupid asking for a £750 overdraft, but we all make mistakes and I'm having to learn from it.

Anyway, I have a £750 overdraft with the Halifax- ultimate reward account. I want to reduce it and pay it all off but I'm being charged £10 a month for the account, and then £1 a day for being over the £300 free overdraft. So last month I paid £38 and I'm assuming I will end up paying £41 soon.

I rang them up yesterday asking if I could freeze my overdraft so I could pay off the £750, my mom did this with her debts before. They refused and said that I just had to ring up and reduce the overdraft whenever I had money in there which I was planning on doing. But I'm just racking up more debt trying to pay this off with the monthly and daily fee.

Is there anything I can ask them that will help me out?
Your help will be greatly appreciated

I'm assuming you are not using the Halifax account as you main account?
Are you aware this is against the terms and conditions and they ould request full payment on demand?

Are your wages paid into the halifax - if you are paid monthly then this should mean you are not in overdraft for a full month?
I recommend you make sure your wages are paid into his account - should also earn you £5 a month reward

Phone the halifax and ask if you can downgrade your account to the normal reward current account (no fee and £5 a month reward if £1000 paid in each month)

Also - there is no reason for you to reduce your overdraft limit each month, just reduce the actual overdraft.