Graduate overdraft fee changes worry

ironholly

Hi I've just received a letter stating my graduate account over draft fee is going to be lowered from 1500 to 1000 and will have a fee of £6 a month and 19% so I would be paying 100 ish a month for being in my overdraft over the 1000 is there any help I can get with this. I currently can't work I had to drop out of uni because of severe mental illness I was in and out of hospital and such I'm now currently in a therapeutic community having therapy 4 days a week that totals up to 20 hours and I'm on benefits. I can't afford to pay 100 a month for my over draft. I originally got the overdraft when I was at uni as student finance messed up and couldn't pay me for the first 6 months from errors on there side. I didn't plan to be ill and drop out and I planned to work after uni but for reasons stated couldn't and still can't and nothing to do with not wanting to as I really want to be well so I can function and work. I'm now scared what to do if I'm going to rack up lots of debt over my planned overdraft. I don't go over it or such just in a bit of a pickle is there any advice or anything I can do thanks.it doesn't change till August so I have a bit of time.

eskbanker

I don't quite follow your figures about how you get to £100 per month but the interest won't be 19% per month, that'll be the annual rate, i.e. you'd expect to pay £190 interest per year on an overdraft of £1,000.

They won't be particularly interested in how/why you got to where you are and will expect you to repay them at some point, but they can't take money you don't have - are your benefits covering your monthly outgoings?

In terms of help, you might wish to talk about your situation with the free Money Advice Service at https://www.moneyadviceservice.org.uk

ironholly

Yeah my outgoings are covered I just wondered if they do like a payment plan of some sorts I know I need to ring them it's just plucking up the courage and 190 a year is manageable I must have understood it ring thank you

bma14

Best thing to do is phone and speak to them - they may have a more suitable vehicle they can offer you rather than the overdraft. You will have to repay it but they can perhaps agree a payment plan with you. Good luck!