To be really angry at my bank this morning

[Wineonafridaynight]

Firstly I know it is my own fault for being in debt but I am trying to clear that and get on top of things.

I have a loan with a high street bank. The past few months I have been struggling - I have been between £5 and £30 over my overdraft by the time month end comes. They then charge £15/day up to a total of £150 (I think that's right) for the privelage. Therefore each month when the fines come out, I am more and more behind schedule with money as they are taking more and more money to cover fees.

This morning I thought I would call up to see if I could get a two month payment break from my loan, meaning I'll have nearly £300/month extra and allowing me to get back on track with my overdraft and pay some outstanding bills. Turns out I can't because I have been over my overdraft within the past six months!

I know that it is my own fault but it really annoys me because the whole reason I want the payment break is so I can get back on track.

What annoys me is the fact that when I took out the loan they mention the payment breaks as a perk as in 'You can have a payment break if you want so you can go on holiday or buy something expensive you want'. Winds me up as effectively they are encouraging people to get into more debt for the sake of a holiday, where as I just want a break so I can actually get back on track with my current account and they won't help me!

I am feeling so frustrated. This rounds up a truly rubbish year with death, sickness, rubbishness at work, loss of work and other really rubbish stuff happening in my family! Roll on 2010!

Sorry - guess I just needed a rant.

I assume you've just spoken to someone at call centre and they'll just be going by what the computer tells them. If it's possible (and it isn't always) ask if you can see bank manager in person and explain situation. May be a way to overcome this? Does depend on the bank but if you're trying to get yourself sorted they may be accommodating. I would point out that you're trying to pay and that you don't want to become bad debt, etc.

YANBU, surely they should be helping you to find some solution to this.

Have you tried asking them if they'll extend your overdraft temporarily while you get back on track? Maybe you should ask for an appointment with the bank to go over all your accounts to see if they can help you find a way to sort this out.

Thanks SleighBelle (love the name by the way). I am going to do that.

I can't pop into the branch today as got to go and help my DP with something work related which involves 150 mile car journey (joy!) but am going to go tomorrow morning first thing and see what I can do.

I guess I just get so frustrated with banks. They really know how to kick you when your down! What's frustrating is I was all on track to clear most of my debt, including a huge chunk of my loan until we fell on hard times this year and then it just went down hill. Story of everyone's life, this year though! I should be grateful for what I have and not moaning.

Please go to the Citizen's Advice Bureau or a respectable debt counselling service (see if CAB website has any links, or Consumer Direct). You need someone who knows the system to get you out of this spiral. You are quite right that all these extra charges are making it far worse, but the bank enjoys exploiting people struggling to get by as it earns them £££££.

Hi Greensnail - cross posts! I'm hoping that might be a solution they will offer. I don't like the idea of getting into more debt to stop getting into more debt if you see what I mean, where as the payment break seemed like a good solution as it was just basically putting it on hold for two months! But I guess the banks want to make money too!

Keep cross posting with everyone and like to respond!

Edam - think CAB might be my next port of call if branch aren't any help. I agree, bank charges are so excessive! But then I guess they are legal according to the courts! They just help to really make things worse whilst things are bad for people.

I have found the Consumer Credit Counselling Service very helpful in my debt situation.

Wine, that's what this site is for - moaning, off-loading, asking for advice and offering support. The whole debt thing can feel like being out of control on a treadmill that is speeding up and it takes a hell of a lot of effort to get off. Hope the bank is supportive when you get to speak to a manager.

OK someone in the branch will not be able to help you, what bank are you with? I work for HSBC and am on a tram called the financial guidance team, we are there for the exact purpose you describe and can usually help people in your situation. If you are with a different bank I would imagaine they would have a simular department, we are however nearly impossible for customers to get through to. ring the bank and ask if there ios something simular?
Also national debtline are fantastic, I don't have the number on me bnut I am sure you can googlwe it.

We had a month recently where the bank charges came to £360 !!! DH got onto the phone and most of it was for small payments that we'd made on our switch card close to pay day, they were for things like 79p i tunes purchase. Because it was a switch card and went through we assumed the money was there, but apparently they don't always apply for the money immediately, so they money was applied for the day before payday and there was nothing left.

DH had the most frustrating phone call as it was all call centre and no 'bank manager' types in existence at all. They did in the end knock off about £75. We then contacted our nearest branch and asked to meet with someone and arranged a meeting - this chap was very helpfull and knocked off a bit more and we are now private banking clients, so we get a real person to speak to.

You'll have to be persistent, but it's worth going to your branch and finding the most senior person there.

sorry for the typo's

Asking for an appointment with an advisor at a branch may be more effective. They may have more ability to pause payment plans than call center staff.
End of the day the bank will want their money back at some point, so it's in their interest to help you find a way to pay it back that you can manage given your current circumstances. Far better to negotiate a new payment plan than for them to call in the debt in my view.

Can you avoid using the overdraft? The fees do seem to pile up if you go over it... can any other lines of credit be used which don't have such a high fee/interest rate?

I would book an appointment in your local branch, then set out all your outgoings on paper and your incomeings.

Then explain that keeping you in debt is futile and mean, you would like soem assistance in them helping you to manage your debt.

Change your bank. You're paying too much on that overdraft- think Halifax is £1 per day (ie total of £31 pcm)
Yes, I agree banks are desperate to encourage you to get more debt.
I telephoned mine to pay of my credit card balance, and they asked me three times during the 'phone call if I wanted to transfer a balance to them from another bank, depsite me saying no first time.

Thanks everyone for your advice. It just feels better to have people to speak to sometimes. DP worries himself over money so don't always want to offload to him about it and all our families live miles away.

Sockmonster Thanks for the advice on that. It is Lloyds I bank with. You actually reminded me that a long, long time ago, shortly after I had graduated university I managed to speak to the magical people who could actually help! (I'm assuming similar department to yours) It did take a long time and took me getting into such a state on the phone that they eventually gave me the number to contact them. By the time I spoke to the right person I was in such a state that the first thing the man said to me was 'Don't worry. It isn't all that bad and I am going to be able to help you'. Managed to get me to calm down enough that he could actually have a sensible conversation with me!

Chloe - That's the situation I get into. I'm trying to keep better track of things now but it is that last week that is the worst with small transactions. And then on top of that I still have to pay £40 petrol that last week to get into work! It actually got to one point a couple of months ago where I didn't have money for petrol to get me into work or the last two days of the month so I had to fill up and then pretend I had forgotten my card and go back and pay two days later. It's awful when it has got to that point.

I also anticipate December/January being a bad month with Christmas (still haven't finished shopping!) and the fact that pay has been moved forwards which means that it needs to last an extra week.

Will try speaking to branch and asking about the financial guidance team.

also a peice of advice I always give is don't buy small things on switch, use cash, t5he cash machine shouold terll you if you are going to go over your limit. They will want a full list of your income and expenditure, and it is actually quite worhtwhile doind it to see yourself anyway.

Lloyds appear to have someone in branches called a Financial Health Specialist. Possibly not all branches though. These Google results has links to pages for different parts of the country, listing branches with a Financial Health Specialist. Hope that helps.

If you can sit down and use excel to put all your money in for the months of the year, this helps to see a bigger picture and allows for council tax and waer rates not being paid for all the months of the year.

Llyods used to do a budget account for all the blls to come out from, leaving your current account with the money for food, petrol and pocket money.

Go and aks them if you can have a seperate accountfor your bills and the money is put in on the first of the month from your other account. Then make yyour other account a cash card account only - so you can't go over drawn - it may be hard but it may assist you.

Ivy, we use a budget that we've put together in excel, and it's really helpful to know where you are at any time. Happy to draw one up for you, and you can fill in your own amounts, if that's of any use. Another thing we do that has really helped is that we use internet banking, and have five accounts with automatic payments going into each of them as soon as we're paid, so we don't have to think about it: dh's personal, my personal, one for savings, which we don't touch, one for fixed payments that are essential, like rent, power, phone, internet connection, gas, council tax, childcare payments and the final account is used for food and entertainment.

It sounds like a huge PITA to set up, but believe me, it's worth it, as it means that you don't miss essential payments, you know exactly how much money you've got available at any one time.

Something to look forward to for us is that in Feb & March we don't have council tax or water rates to pay for as it's paid over 10 months!!!!

Keep harrasing the bank until they do something to help. Alternatively switch banks and find one that will match your current overdraft and charges less.

Kiwi - it maybe a pita to set up, but once it is it is easy to run and easy to know exactly what money you have left. Not a lot in my case but enough to live on and not worry

I just do the two accounts, one for spending and one for all the bills - the wages go into the spends account and then a standing order goes into the bills acount on the same day as payday.

Thanks for advice all! Only getting back now as only got back in. Will be heading to the bank tomorrow to try and speak to someone.

kiwikat my parents have the same situation in March with council tax/water rates but as they get paid 4 weekly isntead of monthly, they have an added bonus of basically a free pay! It is great for them as they do struggle at times and it means they can get cleared. Also this year I am hoping that they might be able to help me get back on track around that time which will be a real blessing!