Can't afford repayments on Lloyds card

dragon27

Hi there,

I'd like some advice please
I have a student credit card with Lloyds TSB with a balance of around £700
Due to having to pay more rent due to not having all of the deposit on my accommodation i can no longer afford my repayments until January
Calling the credit card company is not an option as my phone has been cut off and i'm using a pay as you go sim and relying on free texts

Would I be able to write to them and ask if they can suspend payments until January?
My next pay date is on the 26th and i'm scared that they will just take the money from my account and I can't afford that as i'll go into arrears on my account

I'd appreciate any help people can suggest to me

Thanks a lot

opinions4u

You can write, but I'd suggest you track down a free number at www.saynoto0870.com or walk in to one of those branch things that they have with and ask to borrow one of the bank's phones.

Additionally, are you really sure you cannot afford the minimum payments? This is a big thing and is something that could blight your credit file for several years. Are you in a position where you could aks parents for help perhaps?

In addition, I'd suggest you get over to the Debt-free Wannabe part of the forum. All sorts of ideas for reducing outgoings and increasing income.

chattychappy

If you do have to approach the bank and ask for a reduction in payments, it would best to see a debt charity and get them to do this on your behalf.

You talk about their transferring funds from you account - do you mean your current account? How would this be in arrears... do you mean to create an overdraft?

I would have thought if you have an overdraft facility that is unused, then you should use this rather than default the credit card.

If you have a DD, perhaps you should cancel it to avoid unnecessary bounce charges. If the credit card and the bank account are with the same bank then they could take the money anyway (right of offset) but shouldn't do this if it means creating an unauthorised overdraft.

kerri_gt

I would also suggest that you speak to someone at your place of education (are you at uni?). Colleges and Universities usually have someone who can help and advise the best course of action - they might (though do not count on this) be able to offer some financial help. Given that your income/outgoings are so tight atm, is there the possibility of you getting extra work somewhere? Even just a few extra hours a week will bring in some additional cash - it prob won't be glamerous but needs must.

As also mentioned, is there any way your parents could help you out? I know it will be hard to approach the subject with them and they might not be exactly happy with you getting in this situation, but just keep calm, accept that you shouldn't have gotten into this situation in the first place and discuss with them how you plan to avoid this in the future. Shouldering the burden on your own can make the situation seem 100 times worse.

You aren't the first and certainly won't be the last to get into this situation, well done for at least facing the issue and not burying your head in the sand. Make sure you learn from this though.

fozmcfc

The minimum payment on £700 surely can't be that much, surely you can cut out a few beers, a few non budget meals or indeed just have beans on toast and water for a few weeks. Or how about selling something, any old phones, an old laptop, computer, some cd's you could sell prehaps.

My advice is to try to make the payment even if it means going without or having to sell something you really don't want too.

If your current account is with Lloyds TSB as well, they probably will just exercise their right to take the minimum payment from your bank account. They probably won't care if it takes you overdrawn and will start charging you for being overdrawn.

chattychappy

fozmcfc wrote: »

surely you can cut out a few beers, a few non budget meals or indeed just have beans on toast

Or collect money off your mates in return for agreeing not to live off baked beans!

PNPSUKNET

is it the same bank as the card...

ElkyElky

Am I correct in thinking Lloyds is 2% or £5 minimum repayment? If that's the case, your minimum payment will only be around £15.

You could most certainly make £15 savings from your grocery shop. As someone else suggested, beans on toast will suffice to keep you alive until you are back on your feet. Asking for a reduced payment will have negative effects on your credit file - would that really be worth it for the sake of £15?

What exactly are you doing with your student loan? SLC usually give students an initial lump sum payment (to pay for materials/flat deposit/rent etc) followed by smaller regular monthly payments. Did you get this? If so, what the heck have you done with it?

Asda beans: 29p, Asda bread: 47p. £2.97 to feed yourself for the week which includes two loafs of bread and 7 cans of beans. Can't argue with that. May not be the nicest tasting meal but it's food all the same.

dragon27

Thank you everyone for your help
I've asked my parents to borrow me the money

As far as food goes i have lots of food to last me so thats not a problem
The reason i'm so short is because i had a problem with accommodation last year and then this year i couldn't afford my whole deposit so most of my first loan payment has gone on that and i'm a little short

PNPSUKNET - Yes its the same bank as the card

ElkyElky - We are given the loan in 4 chunks not monthly

Thank you everyone

[Deleted User]

Ask for a student overdraft next time for piece of mind from your current account.

But yeah, £15, seriously?

iereboy

Am glad you got the problem sorted.

Next time, if you are in financial difficulties, ring them and ask to be put thro to the Customer Support Unit. (CSU) They help people with financial difficulties.

You mentioned you could not afford to call them. The number for the CSU is a free phone number as well. You can call them from a BT pay phone I believe for free or walk into the branch and ask them to put you thro if you have no credit on your phone. (I know some mobile companies charge you to ring freephone numbers)

Don't ignore them if you can't pay them. They will take money from your current account to pay themselves. (off setting). This could leave you short, resulting in returned items if you budgeted for that money.

Glad its resolved now.