TheBlueDragon Posted October 12, 2010 Share Posted October 12, 2010 Hi people, Over the past few years I just been getting in more and more debt with the bank, catalogue and other contracts I have so I been thinking about getting a loan and having 1 monthly payment instead. At the moment my bank account is with Halifax and has a £1200 overdraft which I'm always in so I pay £1 a day interest. I sometimes lose track of when payments will go out so I end up over my overdraft and paying £5 a day interest which makes me more skint. I been thinking of getting a new bank account with a new bank and if possible get a loan from the same bank which I can then use to pay off my overdraft, catalogue and other payments so I only have 1 set of payments a month. If that makes sense. Unfortunitly Halifax wont give a loan if your on DLA so if there a bank that has good rates and will let you have a loan on DLA? The worse thing I ever did was get that blooming overdraft so I need to find a way to pay it off Link to comment Share on other sites More sharing options...
crookesey Posted October 12, 2010 Share Posted October 12, 2010 Hi people, Over the past few years I just been getting in more and more debt with the bank, catalogue and other contracts I have so I been thinking about getting a loan and having 1 monthly payment instead. At the moment my bank account is with Halifax and has a £1200 overdraft which I'm always in so I pay £1 a day interest. I sometimes lose track of when payments will go out so I end up over my overdraft and paying £5 a day interest which makes me more skint. I been thinking of getting a new bank account with a new bank and if possible get a loan from the same bank which I can then use to pay off my overdraft, catalogue and other payments so I only have 1 set of payments a month. If that makes sense. Unfortunitly Halifax wont give a loan if your on DLA so if there a bank that has good rates and will let you have a loan on DLA? The worse thing I ever did was get that blooming overdraft so I need to find a way to pay it off Well the Halifax didn't mind giving you an overdraft facility, that in effect is a very expensive loan. IMHO you need professional help, try citizens advice, a proper debt councellor would have the Halifax's guts for garters, they have you stiched up like a kipper. Good luck. Link to comment Share on other sites More sharing options...
neeeeeeeeeek Posted October 12, 2010 Share Posted October 12, 2010 Make an appointment with the bank and explain that you want to try and pay off the overdraft and ask them to put the interets on hold. How much money do you have coming in every month? Work out you set monthy outgoings, rent, insurance, gas, electricity, water etc. What's left? What do you generally eat? Cut out fast food, takeaways etc. You can eat very cheaply if you put your mind to it. Sell stuff on Ebay. You have various hobbies, you could sell some of your scalextric lorries and other stuff you have lying about. All the money will go into Paypal so you can then transfer it into your bank account. £1200 is not a horrible amount of money to recoup if you put your mind to it. Link to comment Share on other sites More sharing options...
ukstudent Posted October 12, 2010 Share Posted October 12, 2010 Don't take another loan out - it will just add to your problems. As already suggested go and see the Citizens Advice Bureau. Link to comment Share on other sites More sharing options...
cgksheff Posted October 12, 2010 Share Posted October 12, 2010 Sell the car. Link to comment Share on other sites More sharing options...
Squiggs Posted October 12, 2010 Share Posted October 12, 2010 http://www.cccs.co.uk/ They will help you approach your bank and advise on different approaches to resolve your problem rather than taking out more loans £1200 isn't a lot to some, it's crippling to others. The main thing is, it's resolveable now, but it's how things can start to go very wrong unless taken control of early Link to comment Share on other sites More sharing options...
chloebo Posted October 12, 2010 Share Posted October 12, 2010 halifax do not give out loans to people who incur bank charges on a regular basis, you are classed as a high risk, this happened to my friend also if you try to open another account else where you are credit searched and whats outstanding on your halifax account and other debt and charges will show, also if you have defaulted on any payments therefore been late with any payments e.g catalogues or credit cards this will also show on your credit search. the more credit searches you have the more it affects your credit rating. Link to comment Share on other sites More sharing options...
Andy Posted October 12, 2010 Share Posted October 12, 2010 Sometimes consolidating can help, if you can reduce the interest/charges. However I have seen many, many people consolidate their debts into a loan and then not cancel the overdraft or credit cards and so run up more debt. To be honest if you are on benefits, you will find it difficult to get a loan (and if you do the interest rate is likely to be high). The reason for this is that benefits are set to give you enough money to live on but there isn't really supposed to be enough left over to pay off loans etc. My advice would be to contact one of the debt charities (CCCS linked to by Squiggs above are very helpful). Their services are completely free and they may be able to negotiate with the bank to stop fees in exchange for you repaying the debt. Before you do that, I would strongly recommend you open an account elsewhere, a basic account with no overdraft facility and re-direct your benefits/income there. This will mean that the Halifax can't suddenly cancel your overdraft and leave you in a position where you cannot access any money. Opening a basic account doesn't depend on your credit rating. Link to comment Share on other sites More sharing options...
chloebo Posted October 12, 2010 Share Posted October 12, 2010 yes as basic account may be suitable for the op but that doesn't alter the fact that she has still got the overdraft to pay back to the halifax if she goes to their collections she will have to make an arrangement this will not reflect good on her credit rating either. Link to comment Share on other sites More sharing options...
firesmudge Posted October 12, 2010 Share Posted October 12, 2010 try money saving expert for help http://www.moneysavingexpert.com/ Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.