Massive rise in Nat West overdraft cost

SendInTheClowns

Help!

A quick overview of my situation. I have struggled with significant debt (£40k+) for the past ten years. Last year, I had three options. 1. Bankruptcy. 2. Contact all the companies I owe and sort out sensible repayments. 3. Do something silly.

I chose option two. I contacted all my credit card companies and all were understanding and put me onto repayment plans. All going well, no payments missed in the last year.

The only issue I had was with Nat West. I have a £5k overdraft with them and am regularly up to (but never over) that figure. I asked for a loan to pay them off and it was refused.

I pay £70 per month in overdraft fees to Nat West which isn't ideal but it is what it is. Yesterday I was notified of their 100 per cent increase in overdraft interest from April 2. This means my payments will rise to £140 per month.

I've just been in to see them and explain my circumstances and they couldn't give two hoots. "All banks are doing this". I explained it was going to put me in financial hardship and mean I am even less likely than ever to get out of their debt. I received a shrug. A literal shrug.

After a year of actually having some money my mental health has improved dramatically, my relationship with my kids has improved etc and now this. I am genuinely now think of going bankrupt just to annoy Nat West.

I can't understand why all the credit card companies have been so understand and Nat West couldn't care less. Any thoughts?

Willing2Learn

Hi and welcome to the forum

If it were me, I would firstly open up a current bank account from a banking group with whom I have no debts.
Then secondly I would have all my future income paid into my nice new shiny account.
Thirdly, I would then withhold repayments on the overdraft until the account is defaulted. (Because once the account is defaulted, interest and fees will be frozen.)

lindens

SendInTheClowns wrote: »

Help!



All banks are doing this".

they are correct, all banks are changing the way they charge on overdrafts from next month

foxy-stoat

Maybe go onto an IVA.

You wont be getting out of the hole in the next 10 years without a lottery win.

Good luck

SendInTheClowns

I don't have any assets - no house and car is leased. Is IVA preferable to bankruptcy in this case?

Willing2Learn

Why are you talking about IVA or bankruptcy? How much do you owe all your creditors in total?

If it were me, I would complete a Statement of Affairs (SOA) and then paste it up into a new thread within the Debt-Free Wannabe (DFW) board. By posting your SOA in the DFW board, we would see your exact circumstances and would then be able to explore all options.

[Deleted User]

A DRO might work if you have other debts as well?

sourcrates

SendInTheClowns wrote: »

I don't have any assets - no house and car is leased. Is IVA preferable to bankruptcy in this case?

For a 5k debt you will not be looking at an insolvency solution, debt management at the very worst will be the chosen option.

enthusiasticsaver

Presumably you have other debt as well as the £5k overdraft? Open a new basic account elsewhere with a new bank not linked to Nat West or any other of your lenders. Move all your income into there. The problem with going bankrupt is the leased car will have to go back.

georgia_c

i have had my concerns about this aswell, I am doing my best to consolidate my debts asap before this happens

DCFC79

georgia_c wrote: »

i have had my concerns about this aswell, I am doing my best to consolidate my debts asap before this happens

Consolidate rarely works, maybe you should post over on the dfw board.