Should I get my overdraft back into "authorised" as priority?

[d1ngle]

Hi

Would appreciate advice here please...

I was planning on missing payment on my personal loan for the first time (debts have become unaffordable), but the bank (who the loan was with) has taken out the payment and put me into unauthorised overdraft.

Should I clear this as a priority as I can see fees racking up quickly??

I can probably borrow on another CC to clear it (which I will also miss payment on this month).

Thank you

D

[gravytrain]

Re: Should I get my overdraft back into "authorised" as priority?

If your talking damage limitation, I would look at the default charges, credit cards usually charge £12 for a missed payment, generally unauthorized overdrafts are more than this , mine is £25.

It sounds like they have already applied this though, so then you have to look at the interest they will be charging and any daily charge, I would take the pragmatic view and go for the cheapest option.

They should have sent you notification of any interest and charges when your OD went unauthorized as per section 74(B) of the CCA so you should be able to see how much daily charge and interest you will be paying.

[d1ngle]

Re: Should I get my overdraft back into "authorised" as priority?

I only went UA OD for the first time today.

Yes damage limitiation. I'm going to default on all my loans for the first time this month due to changes in circumstances. I want to pay my debts back,but don;t want to double them in fees and charges if I can help it?

I believe UA OD is £6 a day with Halifax so definitely more expensive than the CC's?

How do I get them to stop putting me into UA overdraft if I pay this time to get myself back into authorised?

I have cancelled all my DD's, but do they keep adding interest to the OD and push you into UA OD.

[gravytrain]

Re: Should I get my overdraft back into "authorised" as priority?

I only went UA OD for the first time today.

Yes damage limitiation. I'm going to default on all my loans for the first time this month due to changes in circumstances. I want to pay my debts back,but don;t want to double them in fees and charges if I can help it?

I believe UA OD is £6 a day with Halifax so definitely more expensive than the CC's?

How do I get them to stop putting me into UA overdraft if I pay this time to get myself back into authorised?

I have cancelled all my DD's, but do they keep adding interest to the OD and push you into UA OD.

I would ring them tell them it is an oversight and oyou have deposited enough to put you back in authorized territory, if it has not happened before you may even get your fee refunded.

Once you have told them that you are entering a repayment plan they usually freeze the interest on your loans( usually not always).

[d1ngle]

Re: Should I get my overdraft back into "authorised" as priority?

Thank you