Author Topic: Has anyone frozen interest on their overdraft?  (Read 5469 times)

Has anyone frozen interest on their overdraft?
« on: Jul 13, 2009, 12:35:22 PM »
I'm tyring to repay an overdraft but I don't want to bring attention to the fact that I no longer pay my salary into that account. I think that could have been a condition on getting the overdraft. Anyway, the interest is not helping matters and so I would like to ask them to freeze it. Is this a good idea?
fitness

gibraltar

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Re: Has anyone frozen interest on their overdraft?
« Reply #1 on: Jul 27, 2009, 10:29:52 PM »
I think you should write requesting that they lower or freeze the interest but at the same time propose a repayment plan that you can afford and is reasonable for the bank.

cuteadder

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Re: Has anyone frozen interest on their overdraft?
« Reply #2 on: Aug 02, 2009, 07:56:51 AM »
Not an overdraft but a loan, would imagine the same principal applies...

just write off saying what you can afford, preferably with a budget attached and ask them to freeze the interest...


gordonblair81

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Re: Has anyone frozen interest on their overdraft?
« Reply #3 on: Aug 03, 2009, 09:35:25 AM »
I would advise sending a letter enclosing a copy of your Income & Expenditure showing everything you pay for on a monthly/weekly basis.

Also ensure on the letter you request all or part interest frozen with any further charges stopped or lowered.

Be aware the bank will not accept any proposals unless you are offering them a payment every month/week.

If you have other debts on top of this overdraft there are a number of payment plans you can enter into which can stop interest on all debts a trust deed for example - Minimum £10K debts pay off what you can afford over 3 years interest and charges frozen while chunk of your debt written off at end of the 3 year period.

Debt Management - an informal agreement with your creditors making offer of payments to each creditor if they accept 9 times out of 10 they will freeze interest and charges.


Gordon Blair

smallville

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Re: Has anyone frozen interest on their overdraft?
« Reply #4 on: Aug 03, 2009, 03:16:24 PM »
Hi,
I have been in this situation but never thought to freeze the interest.
Yes as far as I know banks prefer you to pay salaries into the overdraft account.
I would go with an income ad expenditure form (not sure If I am allowed to post a link to one on here but you can google it easy enough to get a free one). You can also find freeze interest letter templates. Use the form to work out a repayment plan.

If you cant freeze the interest is there anyway you could get a free loan from a family member / friend to pay it off?
If you could borrow from family you could save interest and have a more flexible repayment rate.
If not possible can you shop around for cheaper alternatives?? I used to have an egg card a few years ago and was allowed to do an overdraft transfer to get a cheaper rate. I suspect some other cards may do the same.

weddings

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Re: Has anyone frozen interest on their overdraft?
« Reply #5 on: Aug 13, 2009, 01:20:29 PM »
Let us know how that goes for the future reference of others.
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