Lloyds Planned Overdraft End

Alexandros_2

Guys,

Have a bit of an issue. My "planned overdraft" is coming to an end in a month's time and unfortunately due to circumstances I will not have enough money to pay it off in full. What should I do? I want to ask if they can extend this but am expecting they will say no. However, the letter included said that they would charge me a maximum of £200 per month for not paying it back (daily fees) - that's so much money and will only drive me further into debt! How can I make it so that they give me a reasonable offer for paying the overdraft back over a few months or simply extending it?

Tixy

Hi Alexandros

How much is your overdraft for and how much reasonably could you afford to repay each month?

I'd write to them with the offer of a repayment plan, say you are unable to pay it off it one lump but you can afford X. They may ask to see an income & expenditure account but should be reasonable about accepting a repayment plan.

You mention paying it back over a few months - if you can realistically do this I'm sure the bank would agree to it.

Note that they say the maximum they will charge is £200, not that they will charge that. Ask them in your later to suspend fees on the account. If you are really struggling financially (and can prove so with and income & expenditure statement) then you could also ask if they would freeze interest.

Is this account your 'normal' current account - if so I'd suggest you open an new basic bank account with a bank who you do not owe money to. Move your income and direct debits to the new account so that your overdraft will become like any other debt, they will then not be able to offset your income against the overdraft.
If at all feasible time wise move the account before next months salary is paid in. (a basic current account is usually quicker to set up as there is no credit check).