Clearing Overdraft

drdogood

Good Afternoon

I'm looking for some advice on how to get rid of a large overdraft (well large in my mind) with Lloyds TSB.

The overdratft is currently at £1200 and for ages I've been paying £40 per month into the account. The problem is that I don't really use the account as my salary is paid elsewhere, but I do get tempted when pay day is nearing and the pennies are running low to dip into the £40 that has been paid in earlier on in the month. The account is never in the black, although Lloyds TSB have been happy to keep renewing the overdraft each year - despite no large amounts being paid in.

I know the main responsibility lies with myself, but I don't want to take a loan out so wondering what my options are.

The suggestions I've come up with:

• Cutting the cash point card up so I can't use it.

• Increase the payment into the account by half before Christmas (£60) and then double it after Christmas (£80)
• Ask the bank to reduce the overdraft every month by what ever is available - can they do this?
• Ask the bank to stop me withdrawing funds from the account - can they do this?
• In all seriousness...how long will it take to be paid off...due to overdraft fees etc?!?!?!?

I just want this millstone gone and can't really think of any more options.

Any recommendations welcome

LuckyBiscuit

I'd defo cut up the card, ask them to freeze interest, why not post a soa and then the guys on here can see where you can make savings to pay it off quicker??
why wait till after xmas to make double payments start them now??
You cant buy people bresents with money you havent got and it makes no sense in buying them presents but paying more in charges.
Family will understand if you just buy for the kids maybe, hubbie and i don't buy gifts for each other!!! Can't afford it and it doesnt mean we love each other any less
Put everything in writing to the bank, send them a copy of your soa and repayment plan maybe??
good luck!!

cakey

you could always ask them to close the account and set up a DD like a loan payment to them, completely gets rid of the tempation

drdogood

Thank you.

I've cut the card up today, so no temptation. Also increased the repayments to £80 from December.

In all seriousness, would they freeze the charges? Or do I have to be in severe financial difficulty? I found a number on their website that is for financial problems, but I'm kind of worried to call them. We're not on the breadline but would it be worth asking?