Please help me to get out of a hole

ChetP

Hi,

Not quite sure where to start so I'll just go straight into it, all of my debts were being paid slowly, but I was constantly in an £800 overdraft with Abbey. They sent me a letter last week saying that they werw withdrawing my overdraft on 1st June and I had to bring my account back into credit, which at the moment is not possible.

I have been into the branch and they offered me a loan, unfortunately I have adverse credit and I am unable to get a loan. Which means that when they take away the overdraft I will be left penniless and unable to pay any of my direct debits and Abbey will just keep charging me for being overdrawn.

I need advice on how to get out of this, surely they can't leave me penniless? but it looks like they are going to.

Thanks in advance

ChetP

Snaggles

One way to get round it would be to get a basic bank account opened somewhere else, and have your salary paid in there - you can set up direct debits on some basic bank accounts too (I'm sure someone here will know which banks let you do this).

That way, Abbey can't take all of your salary leaving you penniless. They will no doubt still take the overdraft away anyway, and start charging you, but you could then claim these back, and at least it will mean you can pay the things that are a priority (mortgage/rent, council tax, food etc), and hopefully come to some sort of agreement with the Abbey that you will pay them back a set amount each month until the debit balance is clear.

ChetP

Thanks Snaggles,

That was the plan I had come up with, I applied to open another account this morning. fingers crossed!

Snaggles

Good luck - as soon as you get an account open, let your employer know straight away, otherwise you might end up with a bit of a struggle on your hands if the salary does get paid into the Abbey account. At least you've got until 1st June to sort it out - what date do you get paid? Will your employer have time to sort it out before May payday?

onamission_2

just quick note - You might not get the bank account ahead of debt payments/salary going in for next payday so you can write a letter to do a first right of appropriation /right to offset - this stops Abbey swiping your salary for the overdraft.

if you have a look in http://www.payplan.com/pdf/guide-to-a-successful-informal-arrangement.pdf

I was just reading this last night -didn't know it before but it could help temporarily..

good luck

tpurch

ChetP wrote: »

Hi,

Not quite sure where to start so I'll just go straight into it, all of my debts were being paid slowly, but I was constantly in an £800 overdraft with Abbey. They sent me a letter last week saying that they werw withdrawing my overdraft on 1st June and I had to bring my account back into credit, which at the moment is not possible.

I have been into the branch and they offered me a loan, unfortunately I have adverse credit and I am unable to get a loan. Which means that when they take away the overdraft I will be left penniless and unable to pay any of my direct debits and Abbey will just keep charging me for being overdrawn.

I need advice on how to get out of this, surely they can't leave me penniless? but it looks like they are going to.

Thanks in advance

ChetP

ChetP,

Sorry to hear of your troubles with Abbey, you could ask them if they will give you a Decreasing Term Overdraft(not sure if thats the correct term), this way they decrease the overdraft by an agreed amount per month say £50.

ChetP

Hi, thanks for all suggestions, I'll let you know how I get on :T