Debt free advice - please help I'm stuck in a bank!

pinkwelshdragon

Having got a Lloyds tsb loan and credit card when I started a new job 2 years ago, I didnt really understand what I was getting myself into. 2 years later, having maxed out my card and missing a couple of payments on my creadit card I now have bad credit history so I'm finding it hard to get a new bank account with another bank. I had applied for a couple of creadit cards to transfer my balance over but was refused. I also tried to open new bank account but was refused due to bad credit history.

I'm making the minimum payments on my card (£70 a month and its only reducing what I owe on the card by a couple of pound). I'm also keeping up payments on my loan of £130 a month which is slowly going down.

What I'd like to do is open up a new bank account with Abbey - I've been quoted a loan of 9% (which is smaller than my 12.9% load with lloyds) to consolidate both loan and credit card. I cant open this account due to my bad credit which I'm going to have to wait about 8 months for it to fall of my credit history. Meanwhile I'm making the £70 minimum payments (this is all I can afford) but my credit card isnt going down.

I'm really frustrated as I want to get away from lloyds but I'm trapped here.

Please does someone have any advice for me?

saintly_2

hiya

welcome to the board, im a newbie on here myself but reading round other posts there are bank accounts that accept people with bad credit history.

I do know halifax offer a basic account and i read on here alliance and leicester do the same.

I'm sure someone with a bit more experience can help you more than me tho

xx

pudding06

Ok pinkwelshdragon,

welcome to the dfw boards, you've come to the right place for advice and support

If you've been reading any posts by new people on here you can probably guess whats coming next:rotfl:


it is.......you guessed it......

Post you statement of affairs (soa)::D
for the good ( and the just plain nosey:rotfl:) folks on here to have a look at and suggest ways of freeing up more money to throw at your debt payments.

but seriously go to southernscousers sticky at the top of the dfw board and follow his suggestions for doing your soa. Paying off your debt involves looking at all possible ways of maximising income and reducing expenditure, and consolidating loans are not always the best way to go anyway!!!!

please do this - you wont regret it

edit - if you've had too many searches on your credit record this may mean you get turned down - makes you look desperate for credit!! you may need to wait for 6 months or so before you can apply again.

pudds

pinkwelshdragon

Thanks for the replies so far, and the advice.

I want to get myself out of debt as I've finally got a good job, being a single teenage mum I didnt start out down the easiest of roads but after ten years I'm finally getting onto my feet, i'm working, got a car and want to buy my house next year. So sorting my debts out asap is a must.

Yes, I've applied for 2-3 credit cards to consolidate my original and then apllied for a loan which were all refused so thats all been added to my credit history, as well as the 2 late payments on the card.

I'm so angry with my bank as they're the one's who gave me the loan and creadit card I stupidly thought that they'd help me out, but obvoisly they want me wollowing in debt as they benfit from it more.

I need to get away from Lloyds TSB asap!!!

soa - Loan from Lloyds TSB - £2500
Lloyds Credit Card - £3500

in_over_my_head_2

I had the same problem, ended up opening a NatWest Step account which you can apply for and manage on-line - no overdraft, no chequebook, no Switch card. They give you a Solo card for cash and that's it... but it's the best thing I did! My wages go in and I know where every penny is going, thanks to my trusty spreadsheet

pinkwelshdragon

I need an account where I can have DD's as thats the only way I manage to keep ontop of payments. Currently I have an account where my wages go into, I transfer money into my DD account where all payment go out of. So if I spend all my money in my first account then I dont spend my DD money.

sandralovescats

There is a link to basic bank accounts which I will post here for you

The chart details all the services that particular bank uses for that account, including DD's


FOR BASIC BANK ACCOUNTS

http://www.moneyfacts.co.uk/banking/..._accounts.aspx


I love my co-op account, they are brilliant!

Phoenix79_2

Did you say you've already been approved for a loan at the Abbey to cover your loan and credit card? If so take them up on it. Least you can clear your lloyds loan and credit card. That'll be a start.

pinkwelshdragon

Phoenix79 wrote:

Did you say you've already been approved for a loan at the Abbey to cover your loan and credit card? If so take them up on it. Least you can clear your lloyds loan and credit card. That'll be a start.

nope, I've been offered a loan of 9% from Abbey but until my bad creadit history clears I'm unable to join another bank. It's going to take another 6 months for my credit history to clear. In the mean time I'm making monthly payment of £70 on my credit card but my total owed is only going down by £3! Which is so frustrating!!!!

I've read your recommendations and had a look at other banks and think I'm going to join Alliance & Leister.

I've been using the internet for about 6 years now, and this by far is the best forum I've ever used.

Thank you. :T

Phoenix79_2

If you have been offered the loan by Abbey why can't you take it up? Sorry i'm a bit confused!

Welshlassie

Hi prinkwelshdragon, well done on starting to sort out your debts.

You need to post a full SOA this includes all your income and expenditure. The fab people here will then analyse what you spend out to identify areas where you can reduce your expenditure, this extra can then we used to throw at your debts, therefore reducing your debts quicker.

Have a look at a snowball caluclator http://www.whatsthecost.co.uk/snowball.aspx this will tell you what date you would be debt free if you continue to pay off the minimum and how much it would actually cost you in the long run with interest added.

Then using the advice given to you on the forum for reduce your monthly expenditure you can plug in the figures that you have saved and watch your debt free date come closer.