HELP PLEASE! Unarranged Natwest overdraft will cripple me!

phuq23

Hi,

Longtime lurker (thanks for all the useful advice Martin and forum users!) - first time poster... Hope this is in the correct forum for such problems!

Basically, I'm just coming off of a short spell on Jobseeker's Allowance, have no other income, and am approximately £2300 overdrawn (my limit).

I start a fairly well paid new job on Monday, but due to the usual unexpected circumstances, have checked my balance today to realise I've only £30 before I go into an unarranged Natwest overdraft...

I have to pay for food, phone, bills, etc. this week - I'm not eligible to raise my overdraft limit, will not receive wages from new job until the end of March, and will not receive my final Jobseeker's payment until approx 3rd March...

It appears that Natwest will charge "Unpaid Transaction Fee of £6 charged for each transaction we reject (Subject to a maximum of £60 per charging period). If you enter an Unarranged Overdraft by more than £10, you will incur an Unarranged Overdraft Usage Fee of £6 for each day you remain in this position (Subject to a maximum of £90 per charging period)."

So I can be charged upto £150 for the month?! If this happens, then I presume they will take my dole payment when it arrives, resulting in me being unable to buy food, pay bills, or travel to new job! I would also still have no money to pay for any further charges - or in fact anything!

So, apologies for long-windedness, but I have no one to borrow funds off, and am rather hoping that some kind soul on here might be able to offer useful advice on the best way to minimise my damage, so that I can survive this month and hopefully sort myself out without jeopardising my new employment!

Is there a way I can get Natwest to freeze/waive these charges, as they will literally stop me from eating/heating/etc until the end of March?!

:beer: All the best and thanks for reading!

W

grumbler

You can't *get* Natwest to freeze/waive, but you can ask them and discuss possible options: I'm struggling with my bills, how can you help?

Depending on your credit history you can try getting a loan or a credit card. Also, consider cancelling some (all?) DDs as they are likely to get bounced anyway and result in extra charges.

If it was a "short spell" and you were getting JSA, how did you rack up £2.3K?!

p00hsticks

phuq23 wrote: »

Basically, I'm just coming off of a short spell on Jobseeker's Allowance, have no other income, and am approximately £2300 overdrawn (my limit).

I start a fairly well paid new job on Monday, but due to the usual unexpected circumstances, have checked my balance today to realise I've only £30 before I go into an unarranged Natwest overdraft...

I have to pay for food, phone, bills, etc. this week - I'm not eligible to raise my overdraft limit, will not receive wages from new job until the end of March, and will not receive my final Jobseeker's payment until approx 3rd March...

I suggest you visit the DEbt Free Wannabe board for some advice on how to minimise the payments you have to make out in the short term

http://forums.moneysavingexpert.com/forumdisplay.php?f=76

for example - do you have really no food in the house that you could use up over the next few days - perhaps at least until your final JSA payment ? And then ask for advice on how to spend the minimum on staples (pasta, bread, rice etc) to see you through until your first payday. Unless you have some medical dietarary needs, a few weeks living on boiled rice and beans on toast isn't going to hurt you.

How much do you really have to pay in bills in the next week ? If you're paying utility bills monthly by direct debit, perhaps consider seeing if you can stop the direct debit and switch back to paying quarterly instead whcih could buy you some breathing space

If you have a mortgage, any chance of taking a mortgage holiday for a couple of months ?

Prioritise what you absolutely need to spend money on (I'd say rent/mortgage, council tax, minimal food and travel for the new job).

phuq23

:-) Thank you to you both for your speedy and helpful responses!

@ Grumbler -

Cheers, will read through that link now, much obliged!

Looking through the forums / Natwest online, it seems my best/only option other than pleading might be to apply for their loan (I've been sofa surfing for months so doubt anywhere I'm not an existing customer of would consider lending to me). It seems if I am eligible it will cost me around £117 in interest over a year, so probably better than paying this month's remaining income out as charges and still having nothing left for neccessities.

I've only ever had the overdraft (never credit cards, etc), and this will be the first time I've ever gone into an unarranged one in more than a decade.

The huge sum involved is due to a glut of bad luck / poor decisions / life circumstances (back injury, periods of homelessness) over the last few years! The new job should pay enough to get my finances sorted over the next few months, just find myself screwed over the coming weeks...

@ P00hsticks -

Much obliged to you as well!

All good advice, but my problem is that I'm already functioning on just the bare minimum (rent, food, phone, walking everywhere instead of public transport, etc.) - I have enough food for a few days or so (very well versed in poverty - once spent two weeks eating plain fusilli pasta for every meal - no exaggeration), but need to pay for heating, rest of month basics, and certain if I go into charges then Natwest will eat up the Jobseeker's payment before I can use it for those!

Only have one Direct Debit (phone, coming out tomorrow), plus monthly interest on arranged overdraft, so not much more I can cut!

Will keep researching anyhow, I figure I have a day or two to pursue all options!

Have a great day,

W

eskbanker

If your new employer is aware of your circumstances, i.e. a period of unemployment, is it worth asking for a salary advance? Far from ideal on day one but the situation is far from ideal.

Alternatively, it's a pretty rare scenario for payday lenders to be recommended on here, as they're usually regarded as parasites, but again, if needs must....

solentsusie

Hi

You say you are "not eligible" to raise your overdraft limit. Have you actually been into your branch and spoken to someone or is this an assumption?

Perhaps if you go in with proof of your new job and income you may get them to raise the limit for the time necessary to you to sort yourself out. This happened to a friend of mine and they got a temporary increase in their overdraft to help them over the sticky period of waiting to be paid.

You may also want to look at how you plan to decrease your overdraft now you have a new job. £2.3K is a lot to be overdrawn and have no contingency.

Good luck