Halifax reducing my overdraft limit

[Domuvaa]

Hi,

Firstly Sorry if this topic is somewhere else I couldnt find it.

Yesterday i received a letter from the halifax saying after reviewing my overdraft of £3500 they will be reducing it in march to £2600 thats £900 ive got to find within a month and i cant possibly afford that.

I phoned them and stated this and they said they would extent the reduction until april, as i am always up to the hilt with my overdraft and since the recent changes to the repayment structure i am paying £2 per day over £2500 i simply cannot aford it.

I am thinking of getting my salary paid into a different bank not associated with the halifax and cancelling all my dd`s. What would be the implications of doing this? Would they charge me £2 per day aswell as £5 per day for using an unauthorised overdraft and therefore could not afford to pay anything towards the actual capital of the overdraft.I could afford to pay them £100 per month off the overdraft in total.

With regard to my credit rating it would probably be marred by doing this but i dot think i have any other option.

Your advice needed please.

Thanks

Domuvaa

[natweststaffmember]

Re: Halifax reducing my overdraft limit

Domuvaa I think you need to do it in writing and state that you have x coming in and y going out and so such a drastic measure especially when Council tax is coming back into the monthly budget is harsh to say the least. At least give them a reasonable time period to allow you to reorganise your finances to be able to get it down.