Halifax authorised overdraft review ...

[smoothsailing]

Hi there,

 

My £1250 authorised overdraft with the Halifax is due to be reviewed in May and it's come to my attention this evening that I could be in for some severe financial penalties if I don't get this money paid off asap.

 

I'm very ill and therefore don't work. I live on benefits, so paying back the full amount would take a considerable period of time. I've had the overdraft for about 10 years and I'm always up to the maximum amount each month.

 

I'm scared to phone them to ask for advice (and reassurance) in case it provokes them.

 

Am I likely to be expected to pay back the overdraft immediately??? Is there a chance they might start charging me heavily (I heard it could be £2 a day) for an authorised overdraft.

 

I've got myself into quite a state about this which merely exacerbates my condition.

 

Any advice at all would be welcome. Thanks.

[gizmo111]

I suggets you open a new account elsewhere and have all your ingoings and outgoings through the new account. Treat the overdraft as a debt and pay what you can afford each month. Halifax are routinely slashing overdraft limits at present, leaving people with no money for essentials.

Don't worry about the charges until they happen.

[smoothsailing]

I actually have an account with the Alliance and Leicester that I never use. So I'd have to set up my direct debits there and have my benefits paid into that account.

 

However, will this not inflame the situation with the Halifax? I won't find myself in more trouble? I was hoping they may accept around £50 a month. Do you think they'll add horrific charges??

[jan2002]

I have the same problem arriving mid june ..please keep us informed how they deal with you and we will compare notes ?

 

Jan

[gizmo111]

I actually have an account with the Alliance and Leicester that I never use. So I'd have to set up my direct debits there and have my benefits paid into that account.

 

That sounds like a sensible plan.

 

However, will this not inflame the situation with the Halifax? I won't find myself in more trouble? I was hoping they may accept around £50 a month. Do you think they'll add horrific charges??

 

You can't get into trouble as such - and if £50 is all you can afford then thats all they can have. They most likely will add charges but they can be reclaimed. There is no guarantee they won't renew your overdraft, but there have been lots this week alone that have had their limit snatched from them.

[smoothsailing]

I have the same problem arriving mid june ..please keep us informed how they deal with you and we will compare notes ?

 

Definitely. :o)

 

You can't get into trouble as such - and if £50 is all you can afford then thats all they can have. They most likely will add charges but they can be reclaimed. There is no guarantee they won't renew your overdraft, but there have been lots this week alone that have had their limit snatched from them.

 

I'm going to have to cover my bases. Even if they do renew my overdraft, I think I'll just chip away at it with the £50 per month. Maybe eventually clear it. I can't cope with the worry.

 

Thanks for the advice. I'm a bit calmer now. :o)