Killed by my Debt
Discussion
Shuvi McTupya said:
it is amazing how fast things can get out of control. I have been there myself.
First it was just bouncing off my overdraft limit getting constant large charges for small bouncy cheques, Getting a £40 bank charge for going a couple of quid (or pennies) over a limit when you are already broke is not ideal.
As a result of all the charges , I could never catch back up so the bank gave me a loan to pay off the outstanding debts and 'get things under control' but then I was still in the same situation but with a loan to pay off, so they gave me a credit card to make payments on the loan...
I got to the point where i was just about managing to pay the interest on the card but not paying down the debt. I was now paying the bank hundreds of pounds a month in interest and the debt was not shrinking.
The bank was literally bleeding me dry and i couldn't see a way out.
Eventually I just opened a bank account elsewhere and told that bank they were not going to get another penny out of me until they stopped charging me the ridiculous interest rates i was paying and they could take me to court if they wish. Eventually they agreed to stop charging me the interest and that any money i paid them would go to pay down the debt!
I am convinced that what they were doing was illegal or they wouldn't have backed down..
Thank goodness you were dealing with established banks, and you had the presence of mind to deliver that ultimatum. That they agreed to help. Pay day loan companies are everywhere, and I don't suppose they're biddable in that way.First it was just bouncing off my overdraft limit getting constant large charges for small bouncy cheques, Getting a £40 bank charge for going a couple of quid (or pennies) over a limit when you are already broke is not ideal.
As a result of all the charges , I could never catch back up so the bank gave me a loan to pay off the outstanding debts and 'get things under control' but then I was still in the same situation but with a loan to pay off, so they gave me a credit card to make payments on the loan...
I got to the point where i was just about managing to pay the interest on the card but not paying down the debt. I was now paying the bank hundreds of pounds a month in interest and the debt was not shrinking.
The bank was literally bleeding me dry and i couldn't see a way out.
Eventually I just opened a bank account elsewhere and told that bank they were not going to get another penny out of me until they stopped charging me the ridiculous interest rates i was paying and they could take me to court if they wish. Eventually they agreed to stop charging me the interest and that any money i paid them would go to pay down the debt!
I am convinced that what they were doing was illegal or they wouldn't have backed down..
I'm lucky in that I started out with capital behind me. I squandered some of it (car...), but I always try to buy outright and live within my means. I'll take out a mortgage soon, and this worries me.
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