HELP!! 4550 overdraft,worried it will be taken away

cloud99

hi,
i currently have an agreed overdraft limit of 4550 with lloyds tsb.that agreement is up for review on the 7th jan 2010 and im really worried they will jus cancel it,which im well aware they are within there rights to do. i am and will be in no posistion to pay off the od if they were to call it in.does anyone have any advice other than a loan (not sure i have a good enough credit rating) or has had experience of a situation like this themselves? thanks for your time.

Tixy

Hi Cloud

Have you been regularly going over your agreed overdraft limit? Or are you behind/late on any payments to any other debts you have with this bank? These are usually the type of things that could flag up your account and make them consider taking your overdraft away.

If they do take it away (and I think they have to give you 28days notice -does anyone know if thats right?) then this would be my action plan

1. Set up a new basic bank account with another bank account (one that you don't owe money to) and transfer your wages and dds to that account.
2. Write yourself a detailed income & expenditure account to see how much you can afford to repay each month after you have repaid your priority items (but not luxuries).
3. Write to the bank to them and tell them you are not in a financial position to repay the overdraft all in one go. In your letter your include a proposed repayment plan for what you can afford each month. Also ask them if they will freeze interest & charges on your account whilst you repay the debt (they may or may not but it doesn't hurt to ask)
4. Set up a standing order for the amount you have offered to repay.

It may take a few letters and they make ask to see your income & expenditure account but most banks usually accept such a proposal in the end. (nb do make sure you pay as much as you can afford as they are obviously more likely to accept a repayment of say £60 per month than £6 per month, that said don't offer more that you can afford as this debt is unsecured so is a lower priority than say rent, council tax, utilities etc).

In the meantime between now and January see if you can manage to spend slightly less of your overdraft each month, perhaps set yourself a target to reduce the o/d at each month end by £50.

Hope that helps

brokemedic

Hi,

Not sure if this will be of any use to you but I had an OD of £4000. For the past year and a half I think, I have been slowly chipping away at it - it's now £1800. I think I was in a similar situation to you - approaching review date and my income was nowhere near the levels it used to be. The bank were giving me vibes that they weren't happy with this..
Please don't get me wrong, I wasn't earning a packet. It was a combination of when the banks were throwing their cash at us and a lot of overtime - I took advantage of it..

I can't give you any advice as to the overall picture but try and reduce the OD, even if it's only a tenner a month. I think I was managing about £50 a month so I had to stay within it. It can be done and it means that you pay less interest which means you can reduce the OD that little bit quicker.

Good luck and I am sure someone who knows what they are talking about will be along soon..;)

moneysaver09

Have you tried to amend it yourself?

You could go on your internet banking and change your own overdraft limit, even just increase slightly by maybe £50 and then if thats agreed it will come up and tell you and that automatically agrees it for the next 12 months

HTH

Shoe_Gal

cloud99 wrote: »

hi,
i currently have an agreed overdraft limit of 4550 with lloyds tsb.that agreement is up for review on the 7th jan 2010 and im really worried they will jus cancel it,which im well aware they are within there rights to do. i am and will be in no posistion to pay off the od if they were to call it in.does anyone have any advice other than a loan (not sure i have a good enough credit rating) or has had experience of a situation like this themselves? thanks for your time.

Mine was just renewed fo another year - and l had been very worried it would be cancelled :eek: Have a lot of other debt with Lloyds but making minimum payments on time and staying within overdraft limit

Tried for £100 increase on line - and was declined