Will Llodys recall all my debt?

onlypaddy

Hi all

Basically, as of October 18th I will have two credit accounts remaining open, both with Lloyds TSB.

1.) Graduate account, £1475 overdraft with £1500 limit interest free.
2.) Credit Card, £3100 with £3500 limit. This account was frozen some time ago and all interest stopped. Paying £50/month on arrangement.

I am paying these off at a steady £25/month and £50/month respectively. Not massive I know. I could theoretically afford more now I'm earning however I don't want to alert Lloyds to the fact I'm earning now and have them possibly review the interest free statuses. I'm waiting to see the outcome of the bank charges test case, as if i get those back it will pay off the rest of the overdraft.

My main concern at the minute is - how likely are Lloyds to review these (especially the overdraft) and decide they want it all back now? I've read about this happening on here. Does it only happen when you're not paying regularly? Am I doing the right thing at the minute?

Any advice appreciated

BenS1

Your doing alot more better than me! Very much in your situation but I didn't understand at the time that Abbey demanded their money back until they passed it to a Collection Agency!

As long as you continue payments every month then everything should be ok.

savingholmes

Are you saving some of the extra money you now have so that you can offer to settle these in full? You should if you can then you won't need to worry about it any more.

onlypaddy

yes its going into an ISA which i'd rather not touch for obvious reasons, tax free back up fund only just got a good wage tho so will be some time before I've saved enough to pay both. Hopefully bank charges will come back soon and wipe out the OD

Charco_2

You would probably be prudent to think about stuffing a bit extra aside for now while you can afford to then in case they do decide to review your situation... then you'd have a lump sum to pay off and wouldn't be caught out! Dont bother paying it in to Lloyds just yet though.

If it's just an arangement (which sounds informal) then yes they can change the status whenever they like.

Save now and then if the bank charges case is settled you'll have a lump sum for yourself!

onlypaddy

hmm, i'm not sure its informal. My statements say the account is closed and it is registered as an arrangement on my credit report. Is that still classed as informal?

savingholmes

I think with an arrangement to pay - unless there is already an expiry date on it - it can be reviewed at any time. If you are saving up in an ISA and trust yourself not to touch it then that is a great approach for now. I would chase up re the bank charges see if there is anything you can do to move it along!

Best of luck!