Opening a basic bank account with overdrawn current account

EarthBoy

flanker wrote: »

I'd much rather offer a full and final settlement with the bank (a lot of it came from charges and interest) using some of the inheritance, ...

You do realise that the bank have no obligation to agree to a full and final settlement and they might tell you to get knotted?

In fact, if you offer a large amount in settlement it could alert them to the fact that you do have funds available, so they might well decide that it's more profitable to insist that you continue paying your overdraft off under the existing terms.

tastyhog

Get an account with monzo, starling etc

Easy and quick to setup, full debit cards etc

MMC87

Hi Flanker

I’ve just opened an account with Virgin Money - it’s a basic account with no credit element and they advertise their services for people who are on benefits, have poor credit rating etc. That could be an option.

You might be able to get more info on the Debt Free Wannabe section of the forum. It’s also a judgement free place to post.

Dobbibill

Hi Flanker,

Is there any reason you don't want another current account?
Having a second current account is nowadays quite normal practice.

As a sidenote - have you spoken to Santander about the charges?
I'm sure you are aware of the implications of your CR being marked as partial payment if you opt for F&F settlement and the 6 yrs information is held. (This is not a dig at what you should/shouldn't do....merely a heads up )

eskbanker

MMC87 wrote: »

You might be able to get more info on the Debt Free Wannabe section of the forum. It’s also a judgement free place to post.

It is indeed, and rightly so, but at the risk of labouring the point, most people on there are posting because they're genuinely up to their eyeballs in debt and can't see a way out of it. Someone rocking up and explaining that they have an overdraft but are handily receiving a lump sum that's more than enough to pay it off (but just want to conceal that fact from their lender) is unlikely to receive a particularly sympathetic response....

Iwanttobefree

GDB2222 wrote: »

He may feel it's not morally justifiable but want to do it anyway. Please feel free to cast the first stone, assuming that you have never done anything wrong in your life.

Also he might feel that had the bank been a little sympathetic, rather than lump charge after charge on, he wouldn't be in this situation in the first place

If a majority of his OD are charges, I would have zero problem with him paying the least he can

YorkshireBoy

Iwanttobefree wrote: »

Also he might feel that had the bank been a little sympathetic, rather than lump charge after charge on, he wouldn't be in this situation in the first place

Unless it's one of the same banks (or a member of the same banking groups) that took a hit last time the OP decided they didn't want to pay their dues?...

http://forums.moneysavingexpert.com/showthread.php?t=4738963

Iwanttobefree

eskbanker wrote: »

It is indeed, and rightly so, but at the risk of labouring the point, most people on there are posting because they're genuinely up to their eyeballs in debt and can't see a way out of it. Someone rocking up and explaining that they have an overdraft but are handily receiving a lump sum that's more than enough to pay it off (but just want to conceal that fact from their lender) is unlikely to receive a particularly sympathetic response....

That depends on the entire situation.

I have been very ill for a number of years, thankfully I'm now slightly better but still too ill to work (at least a year away from considering part time work according to my GP and Physio).

We are on a debt management plan, have been on it for a few years, we did owe £32300 when we started it, we now owe £26513 so it's going down, all be it slowly.

Meanwhile my wife is working her socks off, long hours 6 days a week, just to cover all bills (I'm not looking for sympathy, just explaining our situation) .

We've had one holiday in the last 7 years, that was 4 days in Amsterdam that my son and daughter got us for a surprise birthday present for my wife 3 years ago.

We have no landing/stair carpet, bedroom is in dire need of decorating (wallpaper falling off the wall literally), oither things in the house needing fixing.

Two years ago I sold almost everything I own (Camera, Very decent digital piano, music software etc) as our car had died, to allow my wife to get a new (well 2004 reg) car for her job as a mobile hairdresser.

As things stand, it's going to be about another 12 + years until we pay our debts off (as mortgage is paid off in 7 hence we can up our payments to creditors).

Last Christmas an elderly friend of mine died, he knew my situation, before he died he told me he's leaving me a little something to spend on enjoying myself, not to spend on repaying my debts.

As it turned out he left both me, my wife and both our grown up kids £2500 each

So we had £5000. That would reduce our debts from 26k to 21k and stiil take about a decade to pay off.

My wife needs a holiday, she is drained from stress and work, so she's spending part of hers for a short getaway for us both to Europe around May next year, she's spending another part on getting landing and stair carpets.

I spent some of mine on things for the house (new light for dining room, wallpaper for the bedroom etc) but spent the majority on getting back second hand versions of the stuff I had sold two years previously.

So I now have another piano (although not as good as my original) bought 2nd hand off ebay and I now have another camera that's better than my original due to tech advances but was bought second hand off ebay.

I re bought one part of my music software dirt cheap second hand from from ebay, I got the other part brand new but on a black Friday type sale where it was massively reduced.

I bought a new (again second hand) big external filter for my fish tank.

Many of you will say we should have paid off some of our debt but to be honest it was getting to the point where life for both of us felt like not worth living.

We would be in the same situation in 5 years time whether we paid the 5k off our debt or we didn't, and another 5 years without a break, without being able to do needed stuff to the house etc would be unbearable (and probably kill my wife).

Being stuck at home, I missed my piano etc. Sure I cant play it everyday due to health issues, but it's very nice and relaxing for those times I can.

Now if we had inherited an amount that cleared or virtually cleared all our debts, that would be a different matter, but once you've been in debt, and skint for year after year after year, it really does have an adverse effect to your health, and my elderly friend could see that, and I suspect that's why he said he didn't want me to clear any of my debts with it. Even if he hand't said what he did say, I still wouldn't have paid it off my debts for the reasons listed above.

Iwanttobefree

YorkshireBoy wrote: »

Unless it's one of the same banks (or a member of the same banking groups) that took a hit last time the OP decided they didn't want to pay their dues?...

http://forums.moneysavingexpert.com/showthread.php?t=4738963

Ah, I wasn't aware of all that

Chrysalis

in my experience reputable lenders tend to be willing to reduce fees for debt in return for a prompt payment, especially if its a large amount. I personally dont have an issue with the OPs plan, its certainly better than defaulting.