1000£ overdrawn what happens if i move banks

johnc83

hi all newbie here

ive been banking with barclays for quite a few years noe and i have a 1000£ overdraft facility of which i am always 1000£ overdrawn,my benefits get paid into my account and once i have paid eveything im once again 1000£ overdrawn ... the problem i have is that as much as i try to buget sometimes i go over the agreed 1000£ and they then charge me 30£

i have opened an account with lloyds and the question i want to ask is what would happen if i suddenly moved everything into my new lloyds account leaving myself 1000£ overdrawn with barclays and no funding going into this account

what im really wanting to do is to pay off the 1000£ but i am really struggling with my finances


kind regards

john

rog2

You should treat the overdraft as any other debt and, if you can, make regular payments into it to reduce it.

Alisonbel

We left Barclays with 1900 overdraft, make an arragement with them to pay back monthly. We just added it to our mountain of debt that we are sorting out thru CCCS. We have had no trouble with Barclays compared to others!! As you can see from my signature our overdraft was the same amount as bank charges, have you tried claiming them back?

johnc83

am i correct in saying that as long as i keep paying a little bit of money into barclays it shouldnt pose a problem

thanks

rog2

johnc83 wrote: »

am i correct in saying that as long as i keep paying a little bit of money into barclays it shouldnt pose a problem

thanks

Yes and No, john. Barclays may ask why your normal deposits, wages etc, are no longer being paid in to the account, and may ask for the 'overdraft' to be settled immediately - in which case you simply tell them that you can not afford to do this, and make an offer of regular monthly payments that you CAN afford. The WORST that Barclays could do would be to issue a County Court Summons for full payment of the outstanding 'debt'. Should this happen, you should make the same offer to the court, telling the court that you HAVE been making regular payments and are seriously trying to address the problem. The court will, most likely, accept your payment proposals and make an order, for continued regular payments, which both Barclays, and you, must respect.
On the other hand, since the 'Banks' are now totally 'software' dependent, as long as the 'computer' sees a regular amount of money going into the account, it will probably not flag up any 'alerts' and your account is unlikely to undergo any 'human' inspection until the normal overdraft review date.

johnc83

thankyou

the word 'courts' teriifies me ..... i have applied for bank charges with an agency but ive since been informed by the agency and the bank that the banks now have been given more time in dealing with these requests

rog2

Courts should not terrify you, john - they are there to ensure that the law is applied fairly and are for your benefit as much as for your creditors.

glitzy

johnc83 wrote: »

thankyou

the word 'courts' teriifies me ..... i have applied for bank charges with an agency but ive since been informed by the agency and the bank that the banks now have been given more time in dealing with these requests

Hi john

Yes the agency has given you correct info about the banks, the courts have not decided yet, it might not be until feb next year.
Now you are with Lloyds will you have an overdraft with them? If you do an SOA, you get excellent advice from everyone here, as to where you can cut down even more, plus you can go on a website i thinks its called - whatsthecost.com- where you can snowball and see how quickly your debt can come down.

Good luck

johnc83

the problem i have is that im on incapacity benefit and am really on a shoestring

i made and agreement with mbna to pay them 30£ a month on an outstanding debt of 2500£ with interest frozen

i also had an egg loan for which i owe 500£ and i pay them 20£ a month

and the only other debt i have is with barclays which is the overdraft of 1000£

my account with lloyds has an overdraft limit of 400£ but my plan is to start a fresh and to not use the overdraft, but to do this i need to move completely away from barclays but this will leave me in debt with them


what would happen if i made the regular interest payment each month and maybe 10£ extra into my barclays account once closed ?

since falling ill i havnt borrowed a penny and dont intend to im just fed up with having to make sure i dont go 5£ over my agreed 1000£ limit as im then slapped with a 30£ charge

thankyou

john

MissKJ

Johnc83, forgive me, but it sounds like you are wanting to run away and forget this debt exists, at the potential cost of building up another. The real issue may be your budgeting. Why don't you start a debt diary and post your SOA so people can help you reduce your debts and manage your money better? When you are in a better financial position, you can shop around for a really good account that suits your needs, and maybe pays interest?

johnc83

whats an soa


thanks