Unsure how to handle unpaid overdraft and I am living in an another country at the moment

in Debt-Free Wannabe
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So I need a little bit of advice as I'm pretty worried about my options. My graduate account is transitioning to a classic account end of next month and therefore there will be charges for my almost maxed out overdraft (£1000 limit). I graduated from my masters course last summer but because it was part time (so I could get a job to live on as loans were not enough) it wasn't recognised as enough to keep my student account from my BA course previous. Now last September I left the UK to live in Germany as an au pair for a year, of which is coming to an end this September. I haven't decided whether to move back to UK or continue living here once my contract ends yet but obviously I need to act on this overdraft situation. I didn't tel my bank I was moving because I wasn't sure if it was going to be permanent. I only get pocket money from being an au pair and is hardly enough to live on let alone pay any debts - and before that I was still studying and my part time time only just covered living costs.
I'm nervous contacting my bank as I'm not sure how they will take it that I can't pay my overdraft yet and that I'm not even in the country or know when I'm coming. I just want to know what my options are to prepare myself before I call them. Thank you for taking the time to read this!

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  • TheAbleTheAble Forumite
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    I wouldn't be nervous. Just call them and explain the situation. They may be able to help with the interest rate for a while. Could you find say £100/month to repay? Also consider applying for jobs now that you can take from September.
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  • edited 29 June 2020 at 10:53AM
    sourcratessourcrates Forumite, Board Guide
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    edited 29 June 2020 at 10:53AM
    It will only affect you if you come back to the UK, and then only if you want credit, after 6 years it will be forgotton.
    Banks are notoriously unhelpful when it comes to overdrafts, and not been able to repay them, you may want to re-think calling them, all banks over here are on short staff due to covid-19 just now, average wait time is over an hour on the phone, and then you only get a call handler, not an overdraft repayment specialist.

    You would be best advised doing nothing, unless you are in a position to offer some kind of repayment schedule to them, and if thats the case, then just make whatever payment you can afford, after all you know your finances best, not them, as there are no fixed repayments for an overdraft, there is no need to contact them really.

    If you want to discuss an interest free period, or freezing of interest, then write to them, don`t phone.
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  • pflanzen123pflanzen123 Forumite
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    First Post
    Thank you for your reply!
    Won't the bank still charge the account? Like when you go over your overdraft? It will just keep adding up to something I cant afford!
  • sharpe106sharpe106 Forumite
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    If you can't afford to repay it , then it is still going to go up anyway. If you are planning on returning to the UK I would write to them to see about freezing interest. 

  • sourcratessourcrates Forumite, Board Guide
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    Thank you for your reply!
    Won't the bank still charge the account? Like when you go over your overdraft? It will just keep adding up to something I cant afford!

    That may be the case yes, but after so long, the bank will default the account, and then pass it to a debt collector, if your abroad, you have nothing to worry about.
    Note above, i did advise you write and ask them to stop interest if you cannot afford to service the debt.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
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    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • TheAbleTheAble Forumite
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    Hang on a sec. You're young and at the start of your career. Do you really want a default on your credit file already? For the sake of £1000? Feels a little drastic to me - why reduce your future options in this way?
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  • sourcratessourcrates Forumite, Board Guide
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    TheAble said:
    Hang on a sec. You're young and at the start of your career. Do you really want a default on your credit file already? For the sake of £1000? Feels a little drastic to me - why reduce your future options in this way?

    If she can`t pay it, she will get one regardless, the effect will be minimal over time, and gone in 6 years, if she stays abroad, there won`t be any effect.
    Not ideal i grant you, but if she can`t pay it, the bank will just follow guidence anyway, and a default is inevitable.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • TheAbleTheAble Forumite
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    So just stay in Germany for the next 6 years OP and it will be ok? And if you do come home then don't bother trying to rent a place, get a mortgage or any type of credit?  For a grand? Honestly I'm baffled by this advice.
    How much is this "pocket money" op? Presumably all your bed and board is covered? Can you find even find £50 a month? Once you get a full paying job you'll surely be able to pay it off much more quickly.
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  • sourcratessourcrates Forumite, Board Guide
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    I think the problem is likely to be the near 40% interest that will be charged as soon as the COVID-19 stay of execution is lifted, the interest alone will near £90 a month, so your looking at £150 a month at least to be able to make a dent in it, and cover the interest.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File and Ratings, Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to:
    [email protected].
    Any views expressed are mine and not the official line of MoneySavingExpert.com.
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you.........Private Frazer".
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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