Debt Trouble

[Jo3y83]

Re: Debt Trouble

That sounds pretty good, I might switch to O2 then. I'm currently with Vodafone at the moment and I guess I do pay ridiculous amounts of money for my phone bill!

Should I switch accounts within Barclays or go to a new bank completely? I do have 3 accounts within Barclays. One is my current account with the £1000, the other 2 are savings accounts. Needless to say, they are empty and have no overdrafts on them. What would happen to my overdraft if I switched accounts?

[WendyB]

Re: Debt Trouble

Thats what I've got for Jess, Ame. Got fed up of her bills being 50 quid a month! She was on a 25 quid contract but always went over. Just means she didn't get a phone upgrade, which she didn't deserve anyway cos she's not careful with them. She's forever breaking them, even dropped one in the bath! Fortunately my son upgraded his phone so she had his old one, which is still quite up to date..

[Jo3y83]

Re: Debt Trouble

I am currently paying the minimum amount on my credit cards at present but I'm starting my second job tomorrow night at a bar and any money I earnt from that was going to go towards clearing my credit cards.

The £120 is driving lessons (£30 a week) but I have my test in August and if I fail I'm not going to carry it on as I cannot afford it.

The £300 repayment is included in the 'Loans' section of the sheet.

[WendyB]

Re: Debt Trouble

If you move accounts to another bank, you will have to move all your direct debits as well. You would free up all your incomings for the first month, as obviously your overdraft wouldn't swallow up 100 of your wages. You would have to come to an arrangement with Barclays to pay back the overdraft at an agreed amount per month. If you do that though you would have to stick to it religiously otherwise Barclays could get stroppy and default you etc.

[Amethyst]

Re: Debt Trouble

That sounds pretty good, I might switch to O2 then. I'm currently with Vodafone at the moment and I guess I do pay ridiculous amounts of money for my phone bill!

Should I switch accounts within Barclays or go to a new bank completely? I do have 3 accounts within Barclays. One is my current account with the £1000, the other 2 are savings accounts. Needless to say, they are empty and have no overdrafts on them. What would happen to my overdraft if I switched accounts?

New bank completely - Nationwide are quite good.

Don't get an overdraft (you dont need it its just an expensive loan and you can only spend it once!)

It will just turn into a debt - just open a new account move stuff over yourself (ie DD's arrange with the companies rather than the bank) then tell the barclays you are having difficulties and would like to pay off your overdraft at £100 a month (or whatever it works out at) and they can reduce it monthly like that. They'll soon withdraw it anyway so long as you keep repaying it you shouldnt get any default marks etc and will get rid of it within a year


Savings accounts being empty is good too (well I know what I mean - means Barclays can't swipe any savings to pay off overdraft lol)

[WendyB]

Re: Debt Trouble

And if you're working behind the bar you won't be spending it on the other side of the bar, and you'll be out and having a bit of a social life as well, and earning money at the same time. a win-win siuation. I did bar work for years - every time finances looked grim, I went and worked behind a bar. (In fact, finances are still grim lol, perhaps i should head off to the nearest pub lol)

[Jo3y83]

Re: Debt Trouble

Will Barclays be ok with me moving all my DD's over to another bank? Including their DD for their Loan?
------------------------------- merged -------------------------------
Hehe! Thank you Wendy, I have spent many a night in the bar putting my money on the other side and now I'll be earning it back!

The thing that worries me is that my outgoings are more than my incomings and I worry that if I switch bank accounts the overdraft won't be there to save me and I'll be minus constantly?

[WendyB]

Re: Debt Trouble

Well I don't see as they'll have much choice, will they? You need to get the other account set up first though. They may insist that your loan d/d comes out of your currect a/c with them, in which case set up a standing order from your new bank a/c to the "old" barclays one so they can take it. Make sure the money hits the Barclays account before the loan is due to go out.

[Amethyst]

Re: Debt Trouble

Not sure how Barclays behave with that. you'd have to check the agreement. I think its a pretty unfair term of a loan that you must pay it from one of that banks accounts.

The others have nothing to do with Barclays so sod 'em

how much better will you feel not seeing your balance always at a minus figure ?

[WendyB]

Re: Debt Trouble

The overdraft isn't saving you at the minute, is it?? Cos every month when your wages go in the overdraft takes 100o of it. An overdraft is only useful for the first time you use it. After that its paid back every month so you still only have what you started with, if you see what I mean.

[Amethyst]

Re: Debt Trouble

And unless you missed a load of stuff off your sheet - you do have more income than outgoings.

Barclaycard, Egg and Capital one, and the friends loan are all included in your £537 and £94 a month ?

[Jo3y83]

Re: Debt Trouble

This is true. It would be nice to see my account looking healthy rather than minus every month.
Winning the lottery would solve everything

[WendyB]

Re: Debt Trouble

If you take out the 1000 for the overdraft, that makes your outgoings 1109, which leaves 425 excess of in over out. You could use 100 of this to pay back the o/draft monthly. And still have some left over

[WendyB]

Re: Debt Trouble

so lets get this straight

you owe:

credit cards 4800
friend 9000?
overdraft 1000
barclayloan 11000?
Total 24800 or thereabouts?

is this where you got the 25k debt you mentioned in your first post?

[Sapphire]

Re: Debt Trouble

Hi Joy, if you change that £1k overdraft payment to £100 you will find that your outlook is a lot healthier hun.

As Amethyst and Wendy say a good idea would be for you to open another account. You'll have a fresh start then and you will be able to control your finances a lot easier as you will be able to see thing a lot clearer.