My ridiculous overdraft charges
Simon, 22, explains how he found himself owing £600 in bank charges after going £1 overdrawn.
It all started with a trip to the pub. I had £9 in my bank account and withdrew £10 to buy drinks which left me £1 overdrawn. Because I hadn’t arranged an overdraft with the bank they charged me £28, but instead of sorting it out straight away, I ignored it.
The bank sent me a letter saying that I was £29 overdrawn and I threw it away. I didn’t have the money to pay it back because I wasn’t working, and I didn’t have any savings. I just left it and thought I’d pay it off later, but every month the bank charged £28 and took me further into red.
Ignoring the bank
Over the following two years I was well-informed about my growing debt. The bank sent statements every month as well as letters asking to repay the money. I just used to hide them because I thought if I didn’t see them it wouldn’t be true. I didn’t tell anyone about the debt I was in because I felt so guilty about not paying it back – but it was always on my mind. People describe this feeling of having ‘a weight on your shoulders’, but for me it was getting heavier.
Looking back, I should’ve paid the debt off when it was small and manageable, but I left it for two years. Then something clicked: I received a letter saying I was £580 overdrawn and I finally decided to speak to someone at the bank. I had a job so was able to pay the money back. I ended up paying it all back in one go, which was a huge relief. I could stop worrying and carry on with my life without thinking about how I was going to pay the bank back.
Claiming the money back
A couple of months after I’d cleared the debt a friend said I should try to claim the money back from bank. I went to see a solicitor who deals with unfair bank charges and he took on my case. I was lucky enough to get all the money back very quickly, so spent it on a holiday with my friends.
I’ve learnt a big lesson from the whole experience and I won’t make the same mistake again. Since then I’ve been more careful with my money and I’ll never go under ever again. If I do I’ll make sure I pay it back straight away.
Photo of guy at cashpoint by Shutterstock
Updated on 29-Sep-2015
Can I afford this debt?
Getting into debt is easy. Getting out of it, not so much.
What is Universal Credit (UC), and how will it work?
Should I be saving money?
How to save, even when you're broke
Working below the minimum wage
Working below the minimum wage is illegal, but Ankur ...
Cheaper ways to get a degree
Going to uni too much money? There are other ways you know.