Paying off Lloyds TSB Overdraft

KS2008

Morning everybody,

I have googled and searched the forums for the answer to my question but can't seem to find exactly what I am looking for....

After doing a snowball calculator thingy I am currently paying off my credit cards and should have paid them off (if things go to plan) in 3 months

The next debt I need to tackle is my £3000 overdraft with Lloyds TSB. I should be able to pay around £300 each month of this overdraft. However, I am really worried that if it is available to me I will go back into the overdraft so each month I would like to reduce it by £300.

However, I have read on here that some banks do a credit search when you decrease your overdraft limit and would like to know whether Lloyds TSB do?

I already have a poor credit rating so don't want to make it any worse.

Any advice appreciated for this MSE novice :money:

curlytop12

hi,what many suggest(and what worked for me )is to open(unless you have a spare account somewhere)a new account to use to pay salary in and all bills out of,and just leave the overdraft in the old account,and set up DD to pay into that account each month.
hope that helps,tho not an answer to your question!!
G

hanfrangipane

Hiya,

I am with Lloyds TSB too and am wanting to reduce my overdraft with a view to having it all (£2k plus Credit cards) by August. I, like you, was worried I would just see my 'available balance' and then use it as cash which has got me into this messin the first place! So I do what Gem68 suggested.

My salary goes in and my rent and all bills come out of my overdraft account. Then I have a separate account which I have a standing order of £300 a month going into which is my spending money for food, petrol, etc. Once this is gone it's gone and I don't touch the overdraft account, It means I can easily separate my savings towards debt repayment and my allowance for living.

I'm going to call Lloyds later on to figure out how I reduce my overdraft and what charges relate to so if I find out whether they do a credit search I will pop back here and let you know.

Han

KS2008

Hope you lot don't mind but a gentle bump to see whether any of weekday lot know the answer to my questions!

ss3n08

I am interested to know too, I have just cleared my overdraft and cancelled it, not sure if I have done the right thing now!

ceejaydee23

moving away from a bank account without an overdraft has been the best thing i could have done. I used to have a 1300 overdraft with HSBC which i had extended to borrow money for something which didnt happen in the end, so it was never used, but i was CHARGED for reducing the overdraft. so very soon i'll be closing the account or just getting it go dormant now i'm not using it!