Lloyds Overdraft change to charges

Gunsh0tglitt3r · 19 October 2017 at 4:43PM

Hi,

I originally posted this over on the Credit Card board as I was trying to acquire a 0% money transfer card to pay out the overdraft, and essentially give myself an interest free loan, and then obviously pay back over x amount of months before the 0% was up..

But, funnily enough I have 0% chance of being accepted.

Hi,

Just wondering if anyone can point me in the right direction and if there are any other options for me!

I have an overdraft with Lloyds, who are changing their overdraft charges in November, which will ultimately see them charge me £23 a month in charges (£5 currently) as I'm unable to pay off the entire overdraft.

I ultimately wanted to apply for a 0% money transfer card, to transfer enough to pay the overdraft off and cancel it, and essentially have a (small) 0% interest loan, which effectively is the same amount as my overdraft figure and pay that off over the stipulated 0% months available.

As I am a "homemaker" with one young child, the credit checker is showing I have a 0% chance of getting any money transfer card as they are assuming I would be additional credit on top of my overdraft, but infact it would be to clear that debt, and essentially have the same figure out on credit 0%

Would my only option be a typical loan?

Dobbibill · 19 October 2017 at 5:10PM

Fill in a SOA and the good people here will see where any savings can be made to throw at the overdraft debt.

You'll be surprised at where cut backs can be made.

Make sure you format it for MSE at the bottom.

Gunsh0tglitt3r · 19 October 2017 at 6:11PM

ok, here is my SOA

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 0
Partners monthly income after tax....... 0
Benefits................................ 580
Other income............................ 0
Total monthly income.................... 580

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 50
Management charge (leasehold property).. 0
Council tax............................. 15
Electricity............................. 25
Gas..................................... 30
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 0
Mobile phone............................ 0
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 30
Groceries etc. ......................... 80
Clothing................................ 60
Petrol/diesel........................... 20
Road tax................................ 27
Car Insurance........................... 110
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 10
Entertainment........................... 10
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 547

Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 800
Other assets............................ 0
Total Assets............................ 800

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Lloyds Overdraft...............500.......1.........52
Total unsecured debts..........500.......1.........-

Monthly Budget Summary
Total monthly income.................... 580
Expenses (including HP & secured debts). 547
Available for debt repayments........... 33
Monthly UNsecured debt repayments....... 1
Amount left after debt repayments....... 32

Personal Balance Sheet Summary
Total assets (things you own)........... 800
Total HP & Secured debt................. -0
Total Unsecured debt.................... -500
Net Assets.............................. 300

Created using the SOA calculator at https://www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Gunsh0tglitt3r · 19 October 2017 at 6:18PM

I know the car insurance is crazy, but my justification there is I'm Australian (been here 7 years) and as I wasn't able to bring across 5+years of no claims bonus to the new policy as too many years had elapsed since my last policy, and the fact that I didn't receive my license in the UK, although it is now an UK license, the premium was insane. I have three more payments before the policy is over, and I'm hoping with a 1 year NCB my premium will reduce..

I have a 3 yr old who outgrows shoes/clothes monthly..

Gunsh0tglitt3r · 19 October 2017 at 6:28PM

All I wanted to do was get a money transfer 0% card with 32 months, transfer £1000, clear the £500 overdraft which will eliminate the £23 overdraft fees, cut the card up - have 500 in the bank - maybe pay 6 months road tax up front which would add another £27 a month to my available funds.. bringing me up to £82 available a month, so I could then put £31 a month back onto the 0% card and I'm still left with approx £20 a month more than what I currently have..

Dobbibill · 19 October 2017 at 6:40PM

Does your income include Child Benefit?

Clothing seems a little high for every month.
You have nothing for Car Maintenance and although you are hoping for the insurance to reduce at renewal, will it reduce enough to fund the maintenance & MOT costs.

Have you considered selling the car until you are able to work? It would free up a fair amount to go towards the overdraft.

Gunsh0tglitt3r · 19 October 2017 at 6:58PM

Yeah, that includes child benefit!

I've checked all online calculators etc to make sure I'm receiving what I'm meant to get, and apparently I am.

I have thought about selling the car, but as I'm in London the cost of travel even on a bus, one way taking my son to nursery, and one for him to come back - and I would walk back/to him, is £3 a day, over 20 days in a month that's already £60! Or a monthly bus pass is £81.50!

My MOT is good for another 9 months, and I'm pretty handy being a google mechanic.. ha, so if I've needed something done, I've done it myself and so far it's worked out..

This is so depressing!

I know I need to work, or go back to Australia, just don't know where to apply/what to apply for when I'm so limited to schooldays only, 10-2!

Dobbibill · 19 October 2017 at 7:06PM

If you are going to apply for work now would be the time with many companies recruiting for Christmas.

Many companies are also mindful of childcare and offer a variety of shifts.

Gunsh0tglitt3r · 19 October 2017 at 10:58PM

I'm definitely looking at the return to work aspect, just hope I can find somewhere that is as flexible as I need them to be. Or find something that I can do from home. I was looking at Appen, but I just don't have the funds to purchase the additional equipment (usb headsets etc, I knew I should have taken one from my last workplace (don't Steal!!))

Is it worth me attempting to open a new bank account, simple debit card, no overdraft and have my DD/"income" come into that account, and then attempt reducing my Lloyds OD by £10 a fortnight, or this won't have any benefit? And just keep it all going as is?

tlc678910 · 20 October 2017 at 11:18AM

Hi GSG,
How far is it to take your son to nursery?

You mention you could walk back - if it's less than 30 minutes or so walk I think it would be worth doing even if it means using a buggy if your child can't yet cope with the walk in the mornings. Freeing up the money you spend on the car is such a big % of your income it could really improve the rest of your quality of life.

When your child goes to school wraparound care like a breakfast club and / or after school club or childminder won't take all your wages if you work beyond the school day. At my son's school breakfast and after school together is £10 and that gives me from 7:30 until 6pm so many more options. Not sure if this is unusually cheap or typical.

Sadly you would need to make sure you will be better off working as I'm guessing your rent and council tax must be heavily subsidised.

Wishing you lots of luck in making progress.
Tlc

StopIt · 20 October 2017 at 11:38AM

I thought Lloyds were going to contact those who were going to lose out as a result of these changes, to see if alternatives were available.

Maybe worth going into your local branch and talking to them.

Lloyds Overdraft change to charges

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