Can My Son Get Rid Of His Barclays Accouny?

[chrissa1]

My son has been trying to pay off a Barclays overdraft of £900 for such a long time.

He had a “ packaged account which he doesn’t need, so any payment he makes is just swallowed up by these charges.

If he got a 0% credit card, could he clear the account and then pay it off via the card? Thanks.

[Canary42]

I don't fully understand the question - to me clearing the account means clearing the overdraft and closing the account so why would he then need to pay it off ?

Off the cuff, I would say he needs to approach the bank to discuss the best option (for him not the bank) and if they're unhelpful then to approach another bank.

I would also suggest that he has been "mis-sold" a packaged account - I regard them as a banking con anyway, paying through the nose for features rarely used. He needs a plain no-premium account IMO.

[Buenchico]

If he can find someone to give him a credit card (which might not be that easy if he's got an outstanding loan) then he can certainly use it to pay off his overdraft but he needs to take care.

Unlike paying off another credit card (where a simple 'balance transfer' is involved and, depending upon the rules of the new card issuer, possibly eligible for a 0% interest period), paying off an overdraft might be regarded as equivalent to a cash withdrawal (which might not be eligible for the 0% interest offer). So he'd need to read the small print about any card that he might be applying for.

This might help:
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

There's also a possibility that he might be able to claim back the fees he's been paying on his Barclay's account. See here:
https://www.moneysavingexpert.com/reclaim/reclaim-packaged-bank-accounts/

[chrissa1]

Thanks both of you. I’ll get him to speak to the so and sos tomorrow and yes, we’ll look into claiming the charges back.

[Canary42]

Your last comment reminds me of an interview my brother had with a "financial adviser" at his bank. After a lot of wrangling my brother said, "Be honest, all you're really interested in is what brings you the largest commission" to which the by-then-quite-browbeaten "salesman" agreed !

[chrissa1]

Ab. So. Lutely!!!

I hate banks!

[EDDIE51]

The first step is to close the account so no more charges are piling up.
Then set up a repayment plan to pay off the overdraught.
I owe £9000 in overdraft fees , as I have no income apart from basic pension I pay off £2 a month. As long as a repayment plan is in place and I pay it there is nothing the bank can do. The same will happen to your son as long as he agrees a repayment plan. ( he may have to pay more than £2 a month though)

[Peter Pedant]

yes he can
or yes he could
it is not recommended to raise a loan to pay off another loan
and so I would recommend in stead his going to the local CAB and getting debt advice - they are very good at that

[Peter Pedant]

// I don't fully understand the question //
I do: they dont usually allow you to close an account when it is in debit
hence all the folderol about account charges
and also the fly in the ointment in Eddie's plan A

the fella in question should also use this under perhaps parental guidance to reflect the consequences of getting into debt in the first place
( oh I have cleared debts privately and been paid back (some) - all it does is allow the debtor to .... wrack up more credit card debt)

[KARL]

Our son, during a period of "independence"-display when he had caused something of a rift with his parents (although contact was never broken or even acutely strained), built up a growing debt on his credit card and then on from there as a small loan. As the enthusiasm for a display faded and discomfort/worry grew over the hopelessness of ever clearing the total, we agreed he was in a near permanent trap of this "black hole" draining his resources and he would have to service it forever. We cleared the lot for him. To his credit he has never made the same mistake again, he uses the credit card very sparingly for method convenience only (cut it up at first to go cold turkey) and pays in full every month. He has recently bought his own house with absolutely minimal support from us. Sometimes lessons actually are learned.