Please help - overdraft mess

DB90_2

Hi,

Sorry if this is in the wrong section.

I have an overdraft with a certain bank and have been living in it for years as I don't earn enough to get back to a positive figure. I had an interest free arrangement set up with collections to pay this back £150 per month however I this arrangement was broken so I went back to getting charged interest (my stupid fault). this plan broke because I had to pay other payday loans back I have. I'm in a mess. The £150 per month is coming off as normal but here's the tricky thing... I have since moved to a different bank and am paying out my other loans from there and everything is on time and fine... This obviously leaves me with no income going into my overdraft account with the other bank. I'm currently around £800 over my overdraft limit and simply cannot pay that all back in one hit. Not even 3 hits at the moment. I need to know if any of you guys have any advice on how I should proceed please? I am going to get in contact with my overdraft providing bank shortly, after hopefully getting some guidance from here. I've heard they may put my account into 'recovery' can anyone explain what this would mean? I just want out of this mess.

Many thanks,
D

National_Debtline

Hi

You can try to negotiate an affordable payment plan with the bank to repay the overdraft at an affordable rate, and also ask them to freeze interest and charges if you’re having financial difficulty. It will be at their discretion, but equally you can only afford what you can afford so make the payment to them anyway to show good will.

Bear in mind that they are likely to put a default on your credit reference file if they haven’t already, which will have a negative effect on your credit history.

Offer to send them a statement of affairs (SOA) which would show your income and your essential living costs, to see how much is left over each month to pay towards your overdraft.

You can use the template for a SOA here:
www.stoozing.com/calculator/soa.php

You could also post your SOA figures here if you would like people to offer advice on budgeting tips.

I think by the term 'recovery' they mean calling the debt in and asking for it to be repaid as you are no longer meeting the terms of the account. They may then use a different department to deal with it and contact you to arrange repayment, and may consider payments plans as I mentioned above.

James
@natdebtline

sourcrates

Hi,

You do risk a default, but settling the debt is more Important to your long term credit history.

simply arrange to pay whatever you can each month to the OD, even £10 is better than nothing.

Write and ask for charges and interest to be frozen as per ND advice above, don't ask, don't get !!!!

skintchick

HAve you posted your SOA (statement of accounts) on DFW? There might be some savings you can make to find some extra money.

Also, do you have a skill you could monetise at all? For example I do clothing alterations as a sideline and it brings in quite a bit of money. You'd be surprised what people will pay for (ironing, proofreading, cleaning etc)

fusionx212

Hi Op, I had been having the same issues with a barclays account. see the link below about the processes I have followed to resolve it.

https://forums.moneysavingexpert.com/discussion/5471302

Follettadam

Go with the 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. There might be some savings.

Money_maker

^^^^^^^^ why have you quoted #2 on Fusions thread? Are you setting this user name up as a spam account?

sarah1972

Money_maker wrote: »

^^^^^^^^ why have you quoted #2 on Fusions thread? Are you setting this user name up as a spam account?

Yep now spamming a coupon website.

fusionx212

Huh what have I done?