Overdraft charges

Fluffykittens_me

Hi, could someone please give m some advice, starting to panic a bit now 😞I've moved bank accounts whilst letting everything default I have an overdraft and loan with santander, do I just let the charges build up on the overdraft or do I need to let them know I want to default? Also do the creditors have to default your accounts or can they just let the debt build up. Ivr been following threads for months and thought I was clued up but now ive stopped paying I'm reading contradicting threads and starting to worry if I've done the right thing by just stopping paying and waiting for defaults. Appreciate any advise anyone can give. Thankyou 🙏

sourcrates

Allow me to calm your nerves at least a little, yes you have done the right thing, and yes, interest can build up on overdrafts/cards etc until they default, as there is no getting away from that.

Usually they will not add further interest or charges to most unpaid debts, if they do, you can write and explain your strategy to them.

Credit debts usually default after between 3 and 6 missed contractual repayments (FCA Guidance) although it can be more (or less sometimes).

Overdrafts are different, as you do not make regular repayments, they can take ages to default, so again, write and explain to your bank what your intentions are.

Most debts that see debt management never get fully repaid, there will always be offers available further down the line, which is why an emergency/settlement fund is so important.

So interest added at the beginning is mainly offset by deals done later on.

Fluffykittens_me

Thanks Sourcrates, appreciate your reply. SO am I OK writing to creditors saying I am waiting to default to enter into a Dmp or just for the overdraft? 

sourcrates

There is no harm in telling all of them your plans, it may help, it may not, in the end, you may have to wait out the default process and deal with things at that point.

Fluffykittens_me

Thanks so much 😊