What to say to bank

christopher39_2

Thanks for that.

Someone has suggested transferring my DD's to another account I have and having wages paid into that account and paying in money each month to my overdrawn account, this way I suppose I am in control of what I can afford to repay on the overdraft. What advice would you give me for this option.


Cheers

:beer:

Hippychick

christopher39 wrote: »

Thanks for that.

Someone has suggested transferring my DD's to another account I have and having wages paid into that account and paying in money each month to my overdrawn account, this way I suppose I am in control of what I can afford to repay on the overdraft. What advice would you give me for this option.


Cheers

:beer:

This is the only way I managed to clear my OD, if I kept it with my wages going in it was literally being swallowed up. I would highly recommend this route.:D

tealady

Its an idea as long as your new account has no overdraft or credit facility, otherwise things may not get any better.

christopher39_2

Hippychick thanks for the reply,


How did you go about this? were there any consequences for you from the bank?

fluffydukz

Hi I work for a bank and if you had come in to see me I would be looking to consolidate it into a loan due to the way the advisors are targetted nowadays. I would be very doubtful if your bank would agree to reduce interest or freeze unless you are with their collections department, in which case they will ususlly revert the account to cash only, no dds and remove any card facility that you have.
A loan may help but only if the interest rate is lower than the overdraft and you cancel any of your other credit agreements. I would definately recommend the 2 accounts one for bills and one for spend, it gives you a lot more control over your overdraft and you can see exactly what you have each month. It depends upon the bank you are with as to how they approach these things, most banks are told by their computers what facilities and services you can get and have very little say when it comes to individual circumstances. I hope this helps and you have made a great start so far - keep it going x

Ignatius_A

Be careful. The bank normally reserve the right to request immediate full repayment of an overdraft - they did this to my wife. Not paying your salary into the account may prompt them to do this.

Additionally, currently you're only spending part of the month at your full overdraft - so you're only paying interest on a percentage of the overdraft. If you move your salary to another account, then you'll be paying interest on the whole overdraft for the whole month.

We did have a situation once where our local branch agreed to restrict our overdraft limit by £50pm until we'd paid it off. This was helpful, though i've only ever heard of it being offered this once.

christopher39_2

Just out of interest was your wife able to come to an agreement after the bank demanded full repayment?

beanielou

Best advice i can give you is to open a new bank account ASAP to have your wages paid into.
Transfer any DD's ect.
Then tryto negotiate with your existing bank & dont agree to pay more than you can afford.
Good luck!

fletch3163

Hi, I would have to agree with Ignatius above. When you get paid does your salary pay all of your overdraft? How long is it in the month until you're over your "authorised" limit (ie no charge). At your level of income is there no other benefit you're entitled to? I'm not conversant with it but it's certainly worth a try.

Which bank are we talking about here? I read or heard today that there's a bank that has agreed to reduce the o/d rate to assist their account holders. Surely in this current climate others will follow.

I realise you're anxious to know what to say in the hope of them helping but you should prepare for them not listening at all (some of them don't) and think about your current spending. I've read tons on this site over the past few weeks and am blown away at the resilience of the people. How they can squeeze money out of a seemingly lost cause is miraculous.

The biggest things I can see from your SOA is your insurances are high, you could cut back the Sky package and your shopping can reduce. How many are being fed?

I'm quite hooked on keeping my money now (not saving, just keeping it). for the past couple of weeks now our menus have been governed by bogoff and half price. We're not eating rubbish either, it just takes some patience.

Good luck

CLAPTON

Shifting round the overdraft is, I'm afraid a red herring. It only moves the debt and does nothing to reduce the debt.

You need to address the basic issues of your income and your spending.

a. can you and/or OH increase your income.. overtime or part time work so you have more money coming in.

b. secondly you need to look in much greater detail at your spending ... where is the money actually going. I know its difficult to plan for kids shoes / clothes etc. but is essential that you not only budget for them but actually to start saving for them so you have the money when needed rather that using credit cards.


So start a spending diary and write down absolutely every thing you spend.
Also work out all those yearly or one off things you need to spend on.
So the budget needs to show what you actually spend on clothes, kids activities, birthdays/xmas / school costs, car maintenance / RAC / MOT , socialising, lunches ... absolutely everything.

At the moment its impossible to see what you are actually spending.

c. for the debts list them in detail
amounts, APRs, minimum monthly payments.. is the OD an authorised OD or are you paying charges.

get it all down on paper so you can see the full picture.

Only when you have all the facts can we see the full picture and how much a shortfall there is.

Otherwise, if you get a new loan you will simply end up in a year with a loan plus a new OD.