Barclays Overdraft - how to turn it into a loan and clear it off

fusionx212

Hi All, just a quick note for people with high overdraft costs etc.

I spoke with my bank (Barclay's about my overdraft of 3500, and the fact I am constantly going into the red because they keep charging me daily fee charges which add upto about £120,

taking a large sum of money from pay each month.

Barclay's froze my charges for 3 months and during this time, I had to ensure my account did not go into the red to show I can control my accounts adequately.

I completed an expenditure and affordability form over the phone with them and they have agreed to turn the account into a "resolve loan" with 8% interest, I'd be paying £70 a month until the balance is gone.

I was worried this would have a negative effect on my credit report but they have informed me that this will appear as a loan not an arrangement to pay meaning it will improve my rating.


I had no way of escaping my overdraft before this discussion so I feel it's a good result and possibly an answer for others looking to get away from the high OD fee's.

I've never been in debt with them but I had to speak to the debt collections team to get this in place so you may well need to do this too.

it's still along way to go but now I have a clear path to clearing off a big hindrance on my finances.

nkkingston

Open a basic bank account with someone else to get your wages paid into and your bills paid out of, and pay the 'loan' out of that. You don't get overdrafts on basic accounts, so it'll prevent it happening again, and it'll give you some freedom from Barclay's beady eye.

Thrugelmir

fusionx212 wrote: »

it's still along way to go but now I have a clear path to clearing off a big hindrance on my finances.

You've taken sensible steps forward. :beer::beer:

fusionx212

nkkingston wrote: »

Open a basic bank account with someone else to get your wages paid into and your bills paid out of, and pay the 'loan' out of that. You don't get overdrafts on basic accounts, so it'll prevent it happening again, and it'll give you some freedom from Barclay's beady eye.

well they way it works is they just turn the OD balance into the loan, this moves my bank account back down to zero and the over draft is then removed.

I have recently took steps to pay wages into one account and living costs into a basic account.

means I can leave x amount in the billing account and know what I have to play with for food and social. it works a lot better this way as long as I am honest with my budget.

now just need to reign the wife in and get her on the same pages as me.