options for paying off overdrafts?

stevet_2

hi all i'm new round here so apoligise if this has already been discussed at length before

i have a planned overdraft of approx 2k which i'm finding hard to reduce due to reduction in salary due to the current economic climate i get charged an account charge of £17.99 and with intrest i'm paying about £35 a month i have taken steps to budget to stabilise my account to stop going further overdrawn but it will take me years to get this overdraft down

what are my options??

thanks

Lokolo

Whats the account charge for?

Have you thought about opening another account for bills, then whenever you get salary, transfer the minimum amount in there which will cover all bills. Then use as little of your card as you can, then you should see your overdraft start to reduce.

Have you thought about a short term loan with the bank? Unless you have money to pay this it may not be worth it.

Have you got a budget planner?

There is an internet one where you can copy and paste your info in and then paste it here and we can find out where you can cut down. But I cannot remember the site *hint hint other users*

stevet_2

the account charge is what i pay for the privilage of having a platinum bank account which allows me £250 overdraft intrest free i need to get the balance below this as soon as i can

my budget is very tight at the moment due to a reduction in my salary of approx 10%

i really cant afford a loan at the moment

thanks for your reply

simax

stevet wrote: »

the account charge is what i pay for the privilage of having a platinum bank account which allows me £250 overdraft intrest free i need to get the balance below this as soon as i can

my budget is very tight at the moment due to a reduction in my salary of approx 10%

i really cant afford a loan at the moment

thanks for your reply

If you are paying £17 for a Platinum account (LloydsTSB I assume) that only gives you the first £250 of your £2,000 interest free, you may find that going to a classic account still may be cheaper. You save £17 on account fees.

Platinum is 12.3% APR
Classic is 18.9% APR.

On the remaining £1,750 on Platinum, you're paying £17.94 a month in interest PLUS £17 account fee = £34.94 (Assuming your account balance does not move so assuming worst case scenario)

On £2,000 O/D with Classic at 18.9%, it would cost £31.50 a month in interest but no account charges.

Not much of a saving, but as they say in Tesco, every little helps.

stevet_2

thats brilliant thank you

and the women at lloyds said it would save me money switching to platinum bah humbug:mad:

ANY_CHANCE

This thread has been helpful to me as well, Lloyds have kept calling me and want me to go to the branch to explain to me that one of their other accounts would be more suited to my overdraft other than the basic one i have now. I pay around 30.00 per month for the overdraft.
I have to say i have not booked an appointment with them as unfortuantely i do not trust the banks advice any more, all they have done in the past is sell their products to me which has not been in my best interests, even though they are well aware of my income and expenditure.

stevet_2

ANY_CHANCE wrote: »

This thread has been helpful to me as well, Lloyds have kept calling me and want me to go to the branch to explain to me that one of their other accounts would be more suited to my overdraft other than the basic one i have now. I pay around 30.00 per month for the overdraft.
I have to say i have not booked an appointment with them as unfortuantely i do not trust the banks advice any more, all they have done in the past is sell their products to me which has not been in my best interests, even though they are well aware of my income and expenditure.

sounds like i am not alone

thanks for your reply