Starting to spiral...
dchurch24
Posts: 1,216 Forumite
Hi I'm starting to spiral into debt now.
I left my old employer a year ago for a job that paid slightly less, in an effort to further my career (I have since found much better employer).
Once I got there I was underpaid for about the first three months resulting in some bills not being paid - and subsequently incurring bank charges. This continued for three months and each month less bills got paid as more was going out in charges.
By the time my employer agreed that they were underpaying me, the backpay didn't even cover the charges.
I went to see the bank and they suggested I increase my overdraft to cover their charges, which, having little choice I did.
It has now got to the point where nearly 400 quid goes out in charges each month, which means I have to use a credit card for food and petrol just to get to work.
One of the bills that was not paid was a loan to a different bank, I explained before any payments were missed exactly what the problem was to them, but it fell on deaf ears.
Finally after 2 payments had been missed they suggested that I go and see them, which I did and they suggested that I take out a secured loan against my property, which after much deliberation, I did.
I was informed not to pay the existing loan as a note would be added to the account saying that I was taking a secured loan with the same bank to pay the current loan off.
After 2 more payments had not been paid - willingly this time, under instruction (verbally) from the bank - I was being phoned daily asking for payment.
I would explain each time what was going on, and tried to contact the branch. I was generally 'fobbed-off' and never had my calls returned.
After 7 weeks I recieved a letter saying my application for a secured loan had been turned down, and 'where's our cash?'
Now I owed them over 2 grand in unpaid installments and charges, so I had no choice but to get a secured loan from someone else.
I phoned the original loan bank for a settlement figure, and was given a figure that I immediately passed to the new loan people.
By the time the cheque had been sent to them I had incurred an extra 400 quid in charges, which I am still struggliing to pay off.
I feel that this is wholy unfair as most of the interest/charges were a direct result of following their advice regarding payment.
The main problem is the bank charges I am incurring each month from my current account.
Does anyone know of a way to stop them?
We have just had a new baby as well, which means that shortly my wifes maternity pay will stop also.
Usually I would have said, "I made my bed, I should lie in it.", but this has been a chain of events that were not bought on my any fault of my own.
Sorry, just needed to rant.
I left my old employer a year ago for a job that paid slightly less, in an effort to further my career (I have since found much better employer).
Once I got there I was underpaid for about the first three months resulting in some bills not being paid - and subsequently incurring bank charges. This continued for three months and each month less bills got paid as more was going out in charges.
By the time my employer agreed that they were underpaying me, the backpay didn't even cover the charges.
I went to see the bank and they suggested I increase my overdraft to cover their charges, which, having little choice I did.
It has now got to the point where nearly 400 quid goes out in charges each month, which means I have to use a credit card for food and petrol just to get to work.
One of the bills that was not paid was a loan to a different bank, I explained before any payments were missed exactly what the problem was to them, but it fell on deaf ears.
Finally after 2 payments had been missed they suggested that I go and see them, which I did and they suggested that I take out a secured loan against my property, which after much deliberation, I did.
I was informed not to pay the existing loan as a note would be added to the account saying that I was taking a secured loan with the same bank to pay the current loan off.
After 2 more payments had not been paid - willingly this time, under instruction (verbally) from the bank - I was being phoned daily asking for payment.
I would explain each time what was going on, and tried to contact the branch. I was generally 'fobbed-off' and never had my calls returned.
After 7 weeks I recieved a letter saying my application for a secured loan had been turned down, and 'where's our cash?'
Now I owed them over 2 grand in unpaid installments and charges, so I had no choice but to get a secured loan from someone else.
I phoned the original loan bank for a settlement figure, and was given a figure that I immediately passed to the new loan people.
By the time the cheque had been sent to them I had incurred an extra 400 quid in charges, which I am still struggliing to pay off.
I feel that this is wholy unfair as most of the interest/charges were a direct result of following their advice regarding payment.
The main problem is the bank charges I am incurring each month from my current account.
Does anyone know of a way to stop them?
We have just had a new baby as well, which means that shortly my wifes maternity pay will stop also.
Usually I would have said, "I made my bed, I should lie in it.", but this has been a chain of events that were not bought on my any fault of my own.
Sorry, just needed to rant.
0
Comments
-
First off ... open a new bank account and have your salary paid into that. You may find that you only qualify for a Basic Bank Account, which gives you Solo or Electron but not Switch. You can, however, set up Direct Debits and Standing Order for your regular bills. Contact all your suppliers and have the DDs & SOs changed to your new account.
Or, try Smile who are very generous in these situations.
Then, come to an agreement with your existing bank about settling your existing debts. Download this pack - it's large, but easy to follow. Do exactly what they suggest and call them if you need advice. Or post back here
http://www.nationaldebtline.co.uk/england_factsheets/debt_advice_england_wales.php3#3
Get your new bank account set up and transfer your DDs & SOs before you negotiate with your existing bank.Warning ..... I'm a peri-menopausal axe-wielding maniac
0 -
Thanks for the quick reply.
I still have a £1500 overdraft with my existing bank (although their charges constantly keep this at 1800), presumably I would need to negotiate payments back for this too. My partner tells me that I won't be able to get another account until this is paid off - is this true?
On another note:
I have just had a letter in from Barclays bank saying that an endowment policy (which I have long stopped paying) I have is now worth about £2.5k.
I'm wondering if it's worth cashing this in to clear all the charges and my credit card.
Also, I know this is going to make me sound like 'poor-little-rich-boy', but when I was feeling flush and before all this happened - I bought a house in France as a holiday home.
I have just contacted a letting agency, but they need 100 quid up front and 188 Euros every quarter.
Do you think it's worth cashing in the endowment to pay them and get the french house in a good enough condition to let out and hope that they can get people renting it this summer (there is no guarantee that they will get any rents from the place but you still need to pay them the money.)?0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.6K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.8K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards