On 7 June 2019, the bank regulator, the FCA, announced its new rules about overdraft charges. It calls these: the biggest shake-up to the overdraft market for a generation. The new rules will come into effect from April 2020 - that's a long while to wait if you are currently paying very high overdraft fees. And how much effect will they actually have? The changes to fees - getting … [Read more...]
“My overdraft limit has gone up & I don’t want any more debt”
There are thousands of people in Britain in 2019 who will know how Mr D feels when he asked: We moved into our own place 18 months ago. I have have had to ask for my overdraft limit to be increased several times when I can't afford the bills. It is now at £2,000 and I am paying more than £60 a month in fees. I am trying to reduce it but really struggling as I am the only one working while my … [Read more...]
Lloyds & Halifax overdraft charges up in 2019, reversing 2017 cuts
In January 2019 new charges for Lloyds, Halifax and Bank of Scotland overdrafts came into effect. For anyone with an overdraft of less than £4,100 these will result in higher monthly fees. And the new charging structure is also more complicated. This article looks at how these banks simplified their charges and reduced them for most customers in 2017 but have now reversed that. The banks are … [Read more...]
Overdrafts – a hard type of debt to clear
Do you think you will never be able to get free from your overdraft? You aren't alone. Overdrafts can be the hardest sort of debt to pay off. Even authorised overdrafts aren't cheap (once you stop being a student) and unauthorised overdrafts are very expensive. Overdrafts are very common. The FCA (who regulates the banks) says: 37% of people use an arranged overdraft each year; 25% … [Read more...]
Three ways to pay off an expensive overdraft in installments
Mrs P asked: Is it possible to pay off my overdraft in installments, because I can't seem to get rid of it. One month I make some progress, then the next something crops up. This is a common question. I have looked before at how overdrafts are a hard type of debt to sort out if you spend most or all of the month in your overdraft. People would like to be able to make regular payments to … [Read more...]
4 reasons why you need a new bank account
Everyone needs a bank account that they can rely on, one that doesn't cause more trouble than it solves. So here are four reasons why people with financial problems should get a new bank account. If you have a lot of problem debt, you may think you can't change bank accounts because no-one else would let you have a current account. But the new Basic Bank Accounts that were introduced in 2016 … [Read more...]