Barclays personal reserve what to do with it?

MarianPazdzioch

Hi there,

I hope I am posting in the right section and that you guys can help me. The problem is I have an overdrawn Barclays account for almost 1100. I have been charged for using the personal reserve almost a hundred a month and I am still unable to get out of it. Struggling with money and none of the banks wants to give me a loan to cover that but I am getting much better with all the other loans I've got. A few days ago I've opened a new account and I will have my salary transferred there. My question is what will Barclays do if I stop receiving money to that account and therefore not repay the personal loan. I am planning to go to a branch this week and try to settle this with them, arrange monthly payments, do you think that's possible?



Thanks a lot for any help.

Gromitt

If your credit report is currently full of green, ie no missing payments and no defaults, I wouldn't want an "Arrangement to Pay" marker placed on it. Instead I would just make a payment to the account at least once a month, preferably more often, so they can see your are decreasing your debt.

Remember that since its an overdraft, they can request the full amount repaid at any time. If that happens, then is the time to request an AP.

I'd say the later is less likely to happen if you are making regular credits, so try and do that as often as possible.

DCFC79

MarianPazdzioch wrote: »

Hi there,

I hope I am posting in the right section and that you guys can help me. The problem is I have an overdrawn Barclays account for almost 1100. I have been charged for using the personal reserve almost a hundred a month and I am still unable to get out of it. Struggling with money and none of the banks wants to give me a loan to cover that but I am getting much better with all the other loans I've got. A few days ago I've opened a new account and I will have my salary transferred there. My question is what will Barclays do if I stop receiving money to that account and therefore not repay the personal loan. I am planning to go to a branch this week and try to settle this with them, arrange monthly payments, do you think that's possible?


Thanks a lot for any help.

Maybe you need to cut your soending so you have more to use to pay off the loans.

MarianPazdzioch

Hi again, thanks for all the replies. Gromitt if I start paying them every month I will still be charged that 22 quid per 5 days of using the reserve. I am in a really difficult situation right now and I was hoping to settle it somehow with them to just repay them that 1100 each month without being charged around a hundred for using that freakin personal reserve. Do you think that's possible?

grumbler

No chance without spoiling your credit history.

And if you start asking they are likely just to demand it to be paid off immediately.

getmore4less

Start by asking for the OD limit to be raised so that it takes you out of the reserve. (should have done that before you got into the reserve but thats history now)

If they agree that breaks the reserve £22 every 5 day cycle.

pqrdef

If your salary's paid in, I don't see how you're getting charged so much for going into the reserve.

Moving your salary is a tricky one. It means your salary is no longer being set against your overdraft, and yes, Barclays won't like it. On the other hand, it protects you from Barclays pulling the plug on payday amd leaving you with no money to live on, and don't think they wouldn't.

You need to spend less, there's no alternative. Boiled rice it is then. But it'll take time for the savings to mount up, so you need to manage credit to buy time. Exploit any available sources that are cheaper than the reserve. Don't close off any sources of credit.

If you don't want to go into the reserve, imagine it's not there. They could remove it at any time anyway. What do you do then? Look for ways of juggling. Defer outgoings to next month where you can. Next month you'll have the £100 you didn't waste on bank charges.

Have a detailed budget and stick to it, so all savings you make, even small ones, mount up towards paying down the overdraft. Making savings won't get you anywhere if the money then slips through your fingers.

Don't panic.

MarianPazdzioch

Thank you all very much.

The problem is I have nothing to save from. Usually after payday I end up with a couple hundred in my pocket that's just enough to let me survive till the end of the month.

My overdraft is 150 and the personal reserve goes up to 1100. I am forced to use the reserve pretty much the same day that I receive my salary and they charge me 22 quid for every 5 days of using the reserve.
For 30 days that comes up to 132. Taking a loan to cover that is not an option either as my credit score doesn't look very good. I'm hopeless then.

Thanks guys for letting me know that Barclays could remove that reserve without any notice, I had no idea about it. Seems like the only thing I can do is try to settle with them a monthly payment and maybe in a year s time I will be free from it.




Thanks,
Marian

grumbler

Debt-Free Wannabe board.
>> Sticky: DFW Newbies: Where to start, Challenges, SOAs, Nerds & Debt Free Roll of Honour!

As your overdraft/reserve on average remains the same and doesn't grow after thousands ££ going through your account, it's more a habit rather than a necessity.

Sell stuff, cut the spending to the limit for some time, find some temporary extra job and pay it off. Then forget about it existence and never go overdrawn in your life.

pqrdef

MarianPazdzioch wrote: »

Seems like the only thing I can do is try to settle with them a monthly payment and maybe in a year s time I will be free from it.

That's not going to work. They'd be crazy to pay off your overdraft for you out of the charges they'd otherwise be collecting.

This isn't going to go away without some changes on your part.

Why do you go straight into the reserve on payday? If you could postpone it for 5 days, that's £22 a month saved.

Hominu

MarianPazdzioch wrote: »

The problem is I have nothing to save from. Usually after payday I end up with a couple hundred in my pocket that's just enough to let me survive till the end of the month.

Is there a reason you need it in your pocket rather than leaving it in the bank? More in the bank each day means less charges next month.