Need some more advice about my overdraft please :)

Catriona_P

Hi guys,

I've posted before about my overdraft issues, see here if you're interested:
https://forums.moneysavingexpert.com/discussion/3861759

I've been steadily managing to bring down my overdraft, and after having a frank discussion with my other half about our finances, we have agreed that we need a joint account for bills, mortgage etc. With a certain amount to go into our own accounts each month for our own personal use.

As he is fine financially, he is keen to get the ball moving, but I'm still in my overdraft.

So my question is this - if I open a joint account and have my wages sent to it instead of my current account, are my bank (Barclays) likely to suddenly call back the rest of the debt? I would of course be transferring a certain amount back every month to continue bringing the overdraft down. Is it a bad idea to open a joint account now? Is it worth waiting until I'm out of my overdraft?

Any advice gratefully recieved, thanks.

DCFC79

Im sure if you 2 get a joint acccount then you will be linked financially and his history could be affected but could be wrong though.

marshmallowkisses

Hey!

I would love to help you out with the answer to this one, but the thing is, I had the exact same question, so I'm keen to see what the advice is

All the best with the solution

x

Catriona_P

Ah, DCFC, I didn't know that! That might put my husband off

Good luck to you too Marshmallow, we shall be debt-free someday!

Tixy

First does you specific account require a set amount to be paid in a month? a few do.

If not then it could be a good idea.

If you pay in a reasonable amount each month (not just a couple of quid) you may well be fine. Do you know when your next annual review of your overdraft limit is? Whilst banks do recall mid-year if they see someone obviously in financial difficulties its more likely if you are just about to come up to the annual review.

On a totally seperate note, which may be mentioned in your other thread- before you open a joint account - do you already have any joint credit products? If not are your credit files both reasonable? if one has a file with negatives on it then once associated it could start to affect the other one's ability to get credit account.

rdchick

Yep joint bank accounts make you financially linked so steer clear if you keep your finances seperate like me and my BF do! xxx

Catriona_P

Tixy wrote: »

First does you specific account require a set amount to be paid in a month? a few do.

If not then it could be a good idea.

If you pay in a reasonable amount each month (not just a couple of quid) you may well be fine. Do you know when your next annual review of your overdraft limit is? Whilst banks do recall mid-year if they see someone obviously in financial difficulties its more likely if you are just about to come up to the annual review.

On a totally seperate note, which may be mentioned in your other thread- before you open a joint account - do you already have any joint credit products? If not are your credit files both reasonable? if one has a file with negatives on it then once associated it could start to affect the other one's ability to get credit account.

Thanks Tixy, in response to your questions.

My account doesn't require a set amount to be paid in per month.

I didn't actually know the banks do an annual review of overdraft limits! I've only ever once had Barclays contact me about my overdraft - this was winter 2010 and they were just trying to sell me a loan. I didn't have any contact from them at all last year when I was really struggling (was on maternity leave).

I'm not entirely sure what you mean by joint credit products - we have seperate credit cards but most bills have both our names on. Mortgage comes from his account but is in both our names. Gas/elec is in my name, phone bill in his. I checked my Experian credit report about 3 months ago (free trial) and my credit score is ok, his I expect is very good as he has no credit card or overdraft debt.

gfplux

If you stop paying your salary into your Bank with the overdraft it might trigger a review which may result in them calling in the overdraft.
You need to manage the overdraft carefully to avoid this happening anyway. Normaly the Bank can demand an overdraft be repaid immediately.
They can be a dangerous way of borrowing money. At least with a CC if you pay the minimum the cc company will never call the loan in.

Tixy

If you haev a joint mortgage then you are already financially associated. Your credit files are already linked.
So a joint overdraft won't affect that at all.

JennyJenJen

Why do you have to pay your wages into the joint account? You could keep having them paid into your main one and just transfer what you need to into the joint account. The figures will still be the same but you dont rock the boat with barclays!

Catriona_P

JennyJenJen wrote: »

Why do you have to pay your wages into the joint account? You could keep having them paid into your main one and just transfer what you need to into the joint account. The figures will still be the same but you dont rock the boat with barclays!

True, I think it'd just be easier to do it this way round, our finances are very complicated as it is.

Gfplux, I know overdrafts are dangerous, that's why I really want shot of mine, I just can't get it down any quicker than I am. Agree that credit cards are better.

Thanks for the clarification Tixy, so we are already financially connected. I'm not sure he's aware that my overdraft debt is connected to him too.

I have considered taking out another credit card on 0% to pay off my overdraft immediately and then pay off the credit card over a period of time, but not sure.