huge overdraft,Help!

cloud99

hi i currently have 17000 of debts and am 24.
i have 4600 on one credit card,5600 on another,2800 remaining on a loan and most worrying of all i am 4550 overdrawn with my lloyds current account.the limit is agreed but is up for a review in a few months. i have worked out i can clear my debt in 24 months which im determined to do. Im just real worried that lloyds will call in my overdraft which will leave me with no money thus being late on payments with other debts which would lead to me losing my 0% intrest on the 2 credit cards i have left. Can they just call in the overdraft? will i be able to arrange with my bank to slowly reduce overdraft monthly? please any help would be greatly apprciated.

Moneytroubles_2

hiya, my OH has an overdraft with Lloyds which was at 3500, he wrote to them and requested they froze his interest and set up a payment plan where he pays £30 a month, they were quite nice to him and they let him choose the amount that he paid each month.

I also had an overdraft with another bank that I no longer use, and they wrote to me wanting to reduce my overdraft limit and they wanted me to pay the difference, I rang them up and explained that I couldn't afford to do this and asked if I could set up a payment plan, like Lloyds they asked me what I could afford each month, and I set it up for £40.

I'd give Lloyds a ring - Good Luck X

Tixy

Hi Cloudy

You have a couple of choices with your overdraft. You could move your current account to a new bank account (open a basic account with no overdraft) and then treat you overdraft as another debt. That is set up a standing order to repay a set figure each month.

If your account stipulates that you must pay in a certain amount each month you would need to write to them and explain that you want to stop using the overdraft as a current account and setting out your payment proposals.

When you say you can clear your debt in 24months do you mean all your debts of £17k or just the overdraft? £17k is a huge amount to repay in 2years, can you afford £700 per month on top of the interest charges? Its great if you can but just wanted to make sure you are not setting yourself unrealistic targets, especially as you must have been overspending quite considerably to build up this level of debt in a maximum of 6years.

Have you completed a detailed SoA budget and then used the snowball calculator to work out the 24months? If not you can find them both here - http://www.makesenseofcards.com/soacalc.html

I'd also suggest you build up a small contingency fund in your budget in case of emergencies (as your CC providers may reduce your limit as you start to make sizeable repayments so you won't necessarily have the buffer you might expect).