Banking and Overdraft advice ?I had a graduate account last year an with it came an interest free over draft I finished my course got a job and after about 12 months lost my job I was useing the overdraft whole unemployed and ended up about £700 into it when I got a new job in September just got n payed £300 off it in november but had to use it... | |
Go in and talk to the financial management department that agreed to the repayment plan you have in place. They may be able to stop the demand letters. The trouble with the main banks is that all procedures are automated, and debts go automatically for collection.
Talk to your local credit union. You normally have to be a member for a couple of months before you borrow, but as your amount is quite small they may agree to lend you this amount sooner. And ask their interest rate. If you have several credit unions near you, ask all. For the purposes of illustration I googled Manchester credit union, and it would take a year to repay £500 at £50 a month.
I also googled Liverpool Credit Union - http://centralcu.co.uk/Loan-Calculat...
Helping Hand Loans
These loans are for people who have not yet saved in the Credit Union but require a loan quickly. Helping Hand loans are charged at 2% per month APR 24%, more than a Credit Union loan but still much cheaper than a doorstep lender!
This too would take a year to clear. Their APR for ordinary loans is 12.68%, and the difference is only about £20 over the year between this and a Helping Hand loan.
See if your credit union offers such a loan - you could get it quickly and avoid all the high fees that debt collectors add on. If you do get a credit union loan, you could always pay even a pound or two more than agreed, to get out of debt quicker.
Good luck !!!
