360 pounds a year charge for Overdraft

emilianozapata

Hello

I earn a livable wage, approx 21000 but with family outgoings I am unable to do more than maintain a 1000 overdraft at the halifax, who are charging me 30 a month. My wages go in another bank, and I have one default (1600) (which interestingly was for a credit card I defaulted on four years ago, but which showed up on my account a month ago, which I thought was illegal - I thought bad debt was supposed to follow you for six years, not ten)
my credit rating is about 900
anyway, went through the debt tool, and it didnt really work for me, advising that I could cope, which i definitely cannot.
the best way for me to proceed and clear all the above is to get a loan, or a credit card which I can balance transfer onto.

Any ideas which providers may work with me?

Thank you.

Apples2

You could try a £1,000 loan with your own bank.
This would eradicate your overdraft, which could then be withdrawn.

Interestingly, if you do get a loan but are currently spending every penny you earn....what are you going to repay the loan with?

DCFC79

emilianozapata wrote: »

Hello

I earn a livable wage, approx 21000 but with family outgoings I am unable to do more than maintain a 1000 overdraft at the halifax, who are charging me 30 a month. My wages go in another bank, and I have one default (1600) (which interestingly was for a credit card I defaulted on four years ago, but which showed up on my account a month ago, which I thought was illegal - I thought bad debt was supposed to follow you for six years, not ten)
my credit rating is about 900
anyway, went through the debt tool, and it didnt really work for me, advising that I could cope, which i definitely cannot.
the best way for me to proceed and clear all the above is to get a loan, or a credit card which I can balance transfer onto.

Any ideas which providers may work with me?

Thank you.

What are your debts ? or is the £2600 your debts ?
Whether you can get a loan/credit card is dependant on your current salary to debt ratio.
Maybe cut your spending as well.

Forget the 900 score as its meaningless.

TheMoney

credit scores are largely irrelevant with most banks, it forms a very small part of their overall decision to offer you credit. If you have a default, I would expect most credit offers for you to be at a higher rate, which would be pretty useless, and as mentioned above would require a fixed monthly payment. The best option I could suggest would be checking with over providers as to whether they can offer you a current account with the same overdraft, but a lower rate.

gb12345

TheMoney wrote: »

credit scores are largely irrelevant with most banks, it forms a very small part of their overall decision to offer you credit.

Incorrect - credit scores are totally irrelevant to all lenders and play no part in the underwriting decision s the lenders don't get to see them.

They are just an add-on that the CRAs flog to try and justify their fees.

TheMoney

Pretty much what I was getting at, my version is just slightly simplified. There is only certain parts of your credit record that make a significant difference. The score itself is mainly to give you an indication of how good your record is in comparison to others, but as each lenders criteria is different the score is fully irrelevant to any lending decision.

Good_Goose

Get the missus out to work, or cut back until the OD is cleared!!

iancrt

emilianozapata wrote: »

Hello

I earn a livable wage, approx 21000 but with family outgoings I am unable to do more than maintain a 1000 overdraft at the halifax, who are charging me 30 a month. My wages go in another bank, and I have one default (1600) (which interestingly was for a credit card I defaulted on four years ago, but which showed up on my account a month ago, which I thought was illegal - I thought bad debt was supposed to follow you for six years, not ten)
my credit rating is about 900
anyway, went through the debt tool, and it didnt really work for me, advising that I could cope, which i definitely cannot.
the best way for me to proceed and clear all the above is to get a loan, or a credit card which I can balance transfer onto.

Any ideas which providers may work with me?

Thank you.

Halifax Overdraft Charges are very unfair. You could move banks easily(?) now, but the overdraft may cause a problem with that.
Another option is try for a 0% card to transfer the overdraft to - Ive just done this with a fluid card - but they also gave me scary credit limit so after I moved the money (£2000 overdraft in my case plus £80 fee) and setup the online access the card was destroyed. I have setup a standing order of £170 a month which with the minimum direct debit as well will pay it off in 11 months.
The other solution is savings. While usually better to pay than save - in this case being £1 or £1000 over drawn costs the same so instead of just spending less - spend less and put so much a month into another account. Once you get to £1000 pay off the entire overdraft. do it in a year will cost you £83 a month, 2 years £42 a month. Doing it this way allows you to see whats happening as it builds up, so you know you are managing the situation.
You may not actually need to save the whole £1000, you just need to get to the point where the money in the savings account cancels out the overdraft used on your current account the day before you get paid - thats your transfer day.
Once you do this, keep the saving going - but you have an extra £30 a month to save as well

Niv

If you put your wages into the halifax then for a portion of the month your OD would be paid off so the charge would be less wouldnt it?

I also think that if you fill in a SOA (statement of affaris) and post it you will find some helpful advise on cutting back / where you can make savings.

Niv

opinions4u

iancrt wrote: »

Halifax Overdraft Charges are very unfair.

Why?

They tell you up front what it will be. They don't hide it.

Choose to borrow. Choose not to borrow.

somethingcorporate

opinions4u wrote: »

Why?

Stupid question! :rotfl:

They are charges from a bank - so they have to be unfair? right?