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Clearing overdraft charges
yintong5
Posts: 4 Newbie
Hi all,
First off, I wasn't sure where to post this, but as I'd like to clear both my overdrafts I guess it might come under 'debt free'.
I have two current bank accounts with Lloyds TSB and in the usual manner (for me at least) I have allowed them to grow pretty much up to their £1200 limits. One of them I get wages paid into and costs about £30.00 p/m, the other I end up chucking about £20.00 in every month to cover the charges, which just about covers it, so for the privilege of having them both I'm paying about £50.00 p/m and not paying anything off! All I would like to do is rid myself of the debt, close the account I don't pay into and bust the wages account down to a no-overdraft/no monthly charges one.
Ok, so I could take out a £2400 loan which I might be able to get for around a similar amount (or at least a little higher) and in 5 years it could be paid off, but I'd like to know if there's another way that (obviously) costs less, or is more efficient.
I also have a low rate Halifax card which I took aout a couple of years ago to transfer existing cards to and that's at about £4800 on which I pay roughly £60.00 p/m. This is a 'don't touch' card and is never used for anything and just sits there until I win the lottery. I have a Barclaycard that is (again) never used for anything other than business expenses and gets paid off immediatley I get the expenses paid - on this I never incur charges.
But it is this £1200 on each account that really bothers me as I see no end to it; the Halifax card I can live with and I can even live with the idea of £50.00 p/m bank charges if only I could see them paying something off; which of course they're not. The Bank have asked me to come and see them regarding the 'dead' account as, presumably, they want me to take out a loan which will, in all probablilty, rise from £1200 to £10,000 and leave me standing outside the Bank afterwards with a £200.00 p/m loan and scratching my head in confusion.
The question is then, what is the best way to clear 2x £1200 overdrafts (£2400) and see something happening for my £50.00? Surely there's no way I can use a card as this involves high 'cash withdrawal' fees - or is there?
Many thanks in anticipation.
Stu
First off, I wasn't sure where to post this, but as I'd like to clear both my overdrafts I guess it might come under 'debt free'.
I have two current bank accounts with Lloyds TSB and in the usual manner (for me at least) I have allowed them to grow pretty much up to their £1200 limits. One of them I get wages paid into and costs about £30.00 p/m, the other I end up chucking about £20.00 in every month to cover the charges, which just about covers it, so for the privilege of having them both I'm paying about £50.00 p/m and not paying anything off! All I would like to do is rid myself of the debt, close the account I don't pay into and bust the wages account down to a no-overdraft/no monthly charges one.
Ok, so I could take out a £2400 loan which I might be able to get for around a similar amount (or at least a little higher) and in 5 years it could be paid off, but I'd like to know if there's another way that (obviously) costs less, or is more efficient.
I also have a low rate Halifax card which I took aout a couple of years ago to transfer existing cards to and that's at about £4800 on which I pay roughly £60.00 p/m. This is a 'don't touch' card and is never used for anything and just sits there until I win the lottery. I have a Barclaycard that is (again) never used for anything other than business expenses and gets paid off immediatley I get the expenses paid - on this I never incur charges.
But it is this £1200 on each account that really bothers me as I see no end to it; the Halifax card I can live with and I can even live with the idea of £50.00 p/m bank charges if only I could see them paying something off; which of course they're not. The Bank have asked me to come and see them regarding the 'dead' account as, presumably, they want me to take out a loan which will, in all probablilty, rise from £1200 to £10,000 and leave me standing outside the Bank afterwards with a £200.00 p/m loan and scratching my head in confusion.
The question is then, what is the best way to clear 2x £1200 overdrafts (£2400) and see something happening for my £50.00? Surely there's no way I can use a card as this involves high 'cash withdrawal' fees - or is there?
Many thanks in anticipation.
Stu
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