In a rut Barclays Overdraft Fees

JAY_R_3

Hello, good people
OK, so Barclays new rules and fees on their Active Account is killing me.
Admittedly, I live in my overdraft and have done for some time and the never ending fees (plus the extra fees from Emergency Borrowing fund - that the current overdraft interest used to push me into....humph...!)
So, I need to get rid of overdraft - current charges £65 that I can't make back - the fees are just snowballing and have been for many years (so ashamed!)
Finally got head out of sand to deal with this - but don't have £1700 to clear current overdraft. Refused credit card (as Martin's tips suggested) as I have a poor credit rating (mortgage from the Glorious Northern Rock is made up of a high unsecure loan - oh the days of 100+ % mortgages!)

Anyway, I'm blabbing
Barclays have offered me an overdraft loan of £60 month for 5 years.
I'm stuck and feel very sick - I owe £1700, they want £3600

What to do?! Perhaps this is my only sad way out.
Gutted!

JAY_R_3

Idiot , I am!
Meant to say - have others experienced this problem?
Barclays overdraft loan APR is just...eugh!
All my own fault, I know!!

Mr_Goodkat

It would be worth seeing if you can either get a current account elsewhere who will take on your overdraft e.g. Nationwide offer interest free twelve month overdraft or a 0% credit card that allows super balance transfers.


If your credit file is not in good shape then you will struggle to shift the debt.


If you can't shift the debt it comes down to two solutions or a combination of both
1 - earn more
2 - spend less


Failing all of that the Barclays loan would be worth investigating as it will at least move a permanent debt to a reducing one. It is worth remembering that Barclays could call in the overdraft at any point! If you take the Barclays loan discuss how early settlement is dealt with as taking a £60 a month loan and overpaying could be solution.


Good luck

CLAPTON

JAY_R wrote: »

Hello, good people
OK, so Barclays new rules and fees on their Active Account is killing me.
Admittedly, I live in my overdraft and have done for some time and the never ending fees (plus the extra fees from Emergency Borrowing fund - that the current overdraft interest used to push me into....humph...!)
So, I need to get rid of overdraft - current charges £65 that I can't make back - the fees are just snowballing and have been for many years (so ashamed!)
Finally got head out of sand to deal with this - but don't have £1700 to clear current overdraft. Refused credit card (as Martin's tips suggested) as I have a poor credit rating (mortgage from the Glorious Northern Rock is made up of a high unsecure loan - oh the days of 100+ % mortgages!)

Anyway, I'm blabbing
Barclays have offered me an overdraft loan of £60 month for 5 years.
I'm stuck and feel very sick - I owe £1700, they want £3600

What to do?! Perhaps this is my only sad way out.
Gutted!

what are your current monthly charges and interest?


if they are 65 per month then the loan would seem better as after 60 months you will be debt free


however you really need to sort out your finances and reduce spending/increase income


maybe best to post on the debt free wannabe board

JAY_R_3

Thanks guys. I am currently reviewing budget and I am paying off cards and credit card- I can just about survive per month - never missed payments but my credit score is poor.
I just want rid of the overdraft as I can't recoup the charges with my monthly salary and try to reduce it.
I currently pay £65 for £1700 overdraft.
Their deal is 26.9% on 5 year loan. I'd pay £65.50
I don't mind paying it off - it's my debt but the apr makes me want to weep. Actually it did!
I looked into 0% credit card and was declined by mbna
I should look into another bank account at 0% overdraft and then clear it £100 per month - which I could do. Can't do it this way with Barclays!
I've hit a wall - all my fault but their new charges are high -
I'll get there!! Positive

YorkshireBoy

JAY_R wrote: »

then clear it £100 per month - which I could do. Can't do it this way with Barclays!

Maybe I'm missing something, but if you're reducing the overdraft by £35 a month now, then in 48 months you'll be rid of it (£1,700 / £35 = 48 months). Why pay over 5 years when doing nothing clears it in 4 years? Crikey, if you continued saving £100 a month you'd have £1,200 more at the 5 year point!


That's if you're currently reducing it by £35 of course. If you aren't, why aren't you?...and where will the extra £35 come from?

JAY_R_3

Hi, thanks for response. Let me explain:
I have £1700 overdraft with £65 charges. They also gave me Emergency Borrowing of £500. The charges and my spending (car fixes, food etc) have caused me to slip into the 'Extra' overdraft each month. Then there were £25 charges added for every 5 days I was in that.
So, each month I get to end of my overdraft and do not want to use Emergency Borrowing but, like today, £65 worth of charges have incurred and my balance shows i'm in said Emergency Borrowing. I can't reoup, say the £65-150 that I lose to that extra limit.
Does that make sense?
Basically I should have enough to tie me over until pay day next week or pay off some overdraft but it's swallowed up in the Emergency Borrowing facility.
Ii's entirely my fault - I just want rid so that I can pay the whole thing from afar. I'm trying to access £1700 to pay it off and then pay 'loan or credit card' who are offering a much smaller rate than 26.9 %

Anything extra I can afford to clear at the moment is lost in fees and 'Emergency Borrowing'
I'll get there - I just want rid of the damn thing!
Pay rises for me stopped three years ago. But looking into other avenues.