Help Nat West Are adding £6 to my 19.8% interest overdraft!

Clueless_London

Hi

I have a prearranged overdraft of £3,400 which I live off, right now Im an unemployed freelancer, even when I was drawing unemployment I still had to use my overdraft to live. Now NatWest are adding £6 a month on top of my 19.8% overdraft for no reason! I cannot afford that.

I cant see another bank taking me on and I can't pay off my over draft because I live off it, even if I did pay it off Id be right back in debt having to borrow again. I am trying to improve my situation re-work but right now thats my situation, can anyone help?

Thank you X

heartbreak_star

Open another basic bank account with a different group, and pay your wages into that. Negotiate with Natwest to pay the overdraft off bit by bit, even if only £10 a month.

Would that work?

Failing that, post us up an SOA and we'll have a look.

HBS x

Tixy

You say the £6 charge is for no reason - what it is described as by natwest?

Have you remained within your overdraft limit for the whole month? Have they had to bounce any items at all?

How many months have they added the charge to your account? Is it a new charge and if so did you have a notice of change in the terms & conditions?

You could possibly consider opening a new basic bank account elsewhere to have any benefits/income paid in to that and use that as your main account with no overdraft facility. Then you could talk to natwest about closing the existing account and repaying the debt at a rate you can afford each month which might mean you are no longer charged the additional fees, but this could show on your file and affect your ability to get credit in the future.

datlex

I don't see any reason another bank won't take you on even if it is with a basic bank account- no over draft etc

Calling14

Had an email off them today new charges 6 pounds a month on pre arranged o/d. Try looking around

Tixy

Calling14 wrote: »

Had an email off them today new charges 6 pounds a month on pre arranged o/d. Try looking around

Is that not the new charging they are putting in to place in a few months? or have they brought forward the start date?

heyjude2013

Hi,

I think that just a general Natwest change, not just specific to you, as I received the same email as you a few weeks back. It starts on the 12th July.

I'm in the process of opening a new current account (without an overdraft!) and then I'm going to make sure I pay off a certain amount of money each month to gradually pay off my Natwest overdraft.

m20b27

Tixy wrote: »

Is that not the new charging they are putting in to place in a few months? or have they brought forward the start date?

Email states it relates to my account as of 12th July 2013.

As far as I can see, the £6 is added ONCE PER MONTH to the interest charged on the overdraft, when more than £10 overdrawn.

so essentially they are charging £6 a month extra in additiont o the interest currently paid on the O/D.

all it is is an added incentive for me to get out my O/D:)

Clueless_London

Hi everyone and thanks for your kind replies.


Yes you're right the £6 fee is added in July.

If I open a basic account elsewhere I wont get an overdraft facility and if I pay my money into that well there wont be enough for me to live off, it wont cover my bills, I live off my overdraft.

I have some money coming in but not enough to live off. So I guess I will just have to pay the £6 but I dont know why they should charge me £6 when Im already paying 19.8% on my arranged overdraft.

I just dont know how to dodge the bullet?

Clueless_London

Sorry to seem stupid but what is an SOA.

You answer seems totally logical but I live off my overdraft, I dont have enough money coming in to make a living, even when I drew unemployment benefit the money allocated for me to live on went to my rent. So I have attempt to start my own business but Im new and not doing so well, so I have to live off my overdraft.

Sorry if Im not being clear I just dont know how else to explain?

R_P_W

What does your authorised overdraft limit go up to? How far into it are you now? How much income do you have per month? What are your expenses?

What I'm getting at is you can't 'live off' an overdraft forever if you have less income than expenses - one day you are going to reach the limit! You need to forecast when that will be and try and do something about it now