Overdraft facility due to expire in 9 days.

Sisyphus

Hello,

OK the situation is a little delicate.
I have an overdraft facility that is due to expire in 9 days and I fear the bank might not renew it.

I have a Natwest joint "black" account with my wife which used to be a private banking account. My personal banker has left the bank and I understand that my private banking account is no longer valid as we no longer meet the income requirements.

It's been a tough few years, our income fell dramatically and didn't recover - our expenses didn't fall as quickly. Though we have now reduced them including no longer paying private schooling though we still owe a little there.

We are overdrawn to the tune of £18 000 (our facility is £25000) the upshot is that the bank called earlier and are going to carry out an application to see if it can be renewed.

My net income after PAYG is £2200 pcm - we currently pay rent of about £2000 a month. My wife has been self employed with gross revenues of about 30k this year. Though she has had no work since early July and is desperately trying to sign new contracts but the income there will be late October at the earliest I imagine.

The problem is that if the bank does not renew, we will be in default on the rent. There doesn't seem to be anyone to speak to "in confidence" at the bank who won't put what I say on record. I also fear that a failed application will ruin my credit history.

I realise that some our problems are our own making and we've been slow to adapt to our changing circumstances. I'm not sure what the best plan of action is now, we need to buy time until my wife can get some income.

All advice now is welcome.

jamiefly

Buried in there is the little issue of outstanding school fees. Unless you have arranged a gentleman's agreement with the head/bursar then I can assure you that your credit file will have been marked already. Private school fees are big business for debt collection agencies (I used to work for one).

Sisyphus

jamiefly wrote: »

Buried in there is the little issue of outstanding school fees. Unless you have arranged a gentleman's agreement with the head/bursar then I can assure you that your credit file will have been marked already. Private school fees are big business for debt collection agencies (I used to work for one).

about £1700 outstanding, he'd like me to clear it by end of October but intimated that I should at least pay £400 by end of September. Was planning to do that within overdraft limit but seems compromised - as far as I understand he hasn't passed it on to debt collection /solicitors yet though is reserving that option.

Sisyphus

have been with Natwest since 1984... though account was dormant for 10 years while abroad in the 90s - no major issues other than being overdrawn (within agreed limits) for the last couple of years.

meer53

Your only option is to call Natwest and agree whats going to happen about your overdraft. If you don't the overdraft will simply be removed and you will probably have to make an arrangement with them as to how you will be repaying what you owe.

As for expecting someone at the bank to not note any conversation, i wouldn't have thought this would happen, it certainly wouldn't where i work. All our calls are recorded anyway.

I think it's lightbulb moment time.

Why not post a SOA on the DFW board for help ?

27col

If you are seriously telling us that you are paying £2000pcm rent on a take home salary of £2200, then you need to promptly re-evaluate your life style.Especially in view of the present hit and miss state of income from your wife. A trip to the DFW board together with the posting of an SOA, would be a good idea. This may elicit some helpful suggestions on how to seriously reduce your out-goimgs.

DCFC79

Cant add anything else that hasn't already been said, you need to rent somewhere cheaper for a start but definitely get over to the dfw board and post up an soa.

sunflower_2

if they removed the overdraft and allowed you settle the £18000 over instalments - wouldnt this put you in a better position?
at least the overdraft would be getting cleared instead of using it to live on each month?

maybe this is what you should be requesting from them?
they are more likely to agree in my opinion.

whilst not personal banking, my hubby was stupidly given a HUGE overdraft with Natwest.
it didnt take very long at all for him to use this facility to its limit each and every month :eek:

the following year he was contacted by them to discuss the ridiculous overdraft.
it was agreed they would reduce it by £500 per month until it was cleared, allowing hubby to get shot of the debt at a manageable rate. everyone happy

stclair

You should speak to lending by calling 023 8022 6443 press option 2 then option 3 and speak to someone to discuss your options.

They may be able to put you on a reducing overdraft so the limit is decreased on a set day every month.

meer53

sunflower wrote: »

if they removed the overdraft and allowed you settle the £18000 over instalments - wouldnt this put you in a better position?
at least the overdraft would be getting cleared instead of using it to live on each month?

maybe this is what you should be requesting from them?
they are more likely to agree in my opinion.

whilst not personal banking, my hubby was stupidly given a HUGE overdraft with Natwest.
it didnt take very long at all for him to use this facility to its limit each and every month :eek:

the following year he was contacted by them to discuss the ridiculous overdraft.
it was agreed they would reduce it by £500 per month until it was cleared, allowing hubby to get shot of the debt at a manageable rate. everyone happy

That would only work if the OP has money available to reduce the debt. From what they say, it doesn't sound as though they have any money to do this. OP pays £2000 rent from a salary of £2200 !
Wife has no work currently, where do they get the money from to repay £18k ?

NeverEnough

Its sounds as if it would be a good idea for OP to get a CAB appointment or speak to CCCS about the options.

OP has not mentioned any assets and is renting, so probably doesn't have a property of their own. If there are no assets and a net income of £2200 with outgoings well over that - if rent is £2000 before paying for food, transport, utilities etc - that may make up say £1000 more - then there isn't a hope in hell of getting such a huge overdraft facility renewed. as the bank would be breaking all the affordability criteria etc. now applied.

To be honest, unless OP can make dramatic lifestyle changes overnight and move from the £2000 rented property into one costing say £500 a month, I cannot see how bankruptcy can be avoided.

There are lots of unknowns, though, so OP needs to post up a SOA and give more details as to assets so proper advice can be given, although this is going to be a difficult one if there are little to no assets.