In July 2020, Lloyds, Halifax and Bank of Scotland (BoS) increased their overdraft charges and a month later people are starting to see the full cost on their monthly statements. This is the fourth change to the banks' overdraft charges since 2017. The new fees are higher for customers with a bad credit rating. This is unfair in several ways. So what can you do if you can't afford these … [Read more...]
New “simpler” overdraft charges in 2020 are higher for 8 million people
In June 2019, the bank regulator, the FCA, announced its new rules about overdraft charges. It called these: the biggest shake-up to the overdraft market for a generation. Banks have to change their overdraft charging before April 2020. On 22nd January the last of the banks announced how they were changing their rates. And the FCA has now admitted that about 8 million people will be paying … [Read more...]
“My overdraft limit has gone up & I don’t want any more debt”
There are thousands of people in Britain in 2020 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...]
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. So what can you do that will work? Very hard to escape from The hamster on this wheel is enjoying going round and round and … [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...]