Overdraft help

markharriers

Hi guys

I have an overdraft of 1000pound that's charging me a £1 a month

Would anyone be kind enough to offer me some advice

patman99

The best advice is to not have an overdraft.

To be honest, you state that you have an overdraft of £1,000 that costs you £1 a month. However, you have not told us if this is a facility extended to you by your Bank that you don't actually use, or whether you are actually £1,00 into your overdraft.

markharriers

patman99 wrote: »

The best advice is to not have an overdraft.

To be honest, you state that you have an overdraft of £1,000 that costs you £1 a month. However, you have not told us if this is a facility extended to you by your Bank that you don't actually use, or whether you are actually £1,00 into your overdraft.

Sorry I'm 1000 in the overdraft

DCFC79

markharriers wrote: »

Sorry I'm 1000 in the overdraft

Cut your spending, change the bank details for where your wages get paid into.

sourcrates

markharriers wrote: »

Hi guys

I have an overdraft of 1000pound that's charging me a £1 a month

Would anyone be kind enough to offer me some advice

£1 a month ? That's not a bad rate !!

If you want to repay it, just leave £20/30 a month, or whatever you can afford, in your account, eventually it will be repaid.

All depends on your circumstances, as you have given us nothing to go on !!!

gettingtheresometime

I managed to clear 2 £500 overdrafts by cutting back and focusing my debt clearing on these 2 debts. (Taking part in the 1 debt v 100 challenges helped with this)

January2015

Do you mean £1 per day, or £1 per month?

I ask because we used to have an account with Hellifax and for that level of OD the charge was £1 per day, increasing to £2 per day if we went over £1k

markharriers

Sorry guys I'm 1000 in debt paying a pound a day back wondering if I should keep with it or shift it

sourcrates

markharriers wrote: »

Sorry guys I'm 1000 in debt paying a pound a day back wondering if I should keep with it or shift it

Sounds like a Halifax account then, correct ?

Without knowing about your income/expenditure it's just a guessing game, but if it's causing you sleepless nights, write to the bank and tell them so, they may suspend interest, and allow you to pay it off at a rate you can afford.

May also be a good idea to,open a new basic bank account, with a bank you have no debt with, use that for day to day banking, treat the old one as just another debt to service.

Info here : http://www.moneysavingexpert.com/news/banking/2015/12/nine-banks-to-offer-fee-free-basic-accounts-in-the-new-year

DCFC79

markharriers wrote: »

Sorry guys I'm 1000 in debt paying a pound a day back wondering if I should keep with it or shift it

Make a start with following the advice been posted.

January2015

Definitely sounds like the Hellifax account we used to have.

As Sourcrates says, if you are struggling contact the bank and discuss with them. If you can evidence this is causing you financial difficulties they should be prepared to listen and support you.

Hellifax subscribe to The Lending Code. Section 224 states:

• Subscribers should consider reducing or stopping interest and charges when a customer evidences that they are in financial difficulties. Such reduction/suspension decision should be based upon an income and expenditure statement indicating that they are unable to make repayments sufficient to meet contractual terms. Where a customer is able to make only token payments, their debt should not increase as a result of interest and charges levied. The assessment should reflect the customer’s lack of ability to pay rather than the stage an account has reached in the arrears cycle or whether they are using free sources of debt advice. Where a firm declines to allow concessions, they should be prepared to explain why to the customer or their adviser if requested to do so.

If you evidence financial difficulties and they refuse to support you by reducing or stopping the charges, be prepared to quote the Lending Code to them and say you will complain to the ombudsman.